Wednesday, July 20, 2011

DTN News - OSHKOSH DEFENSE NEWS: U.S. Army Selects Oshkosh Defense To Recapitalize Heavy Tactical Vehicles

Defense News: DTN News - OSHKOSH DEFENSE NEWS: U.S. Army Selects Oshkosh Defense To Recapitalize Heavy Tactical Vehicles
(NSI News Source Info) TORONTO, Canada / OSHKOSH, Wis. - July 20, 2011: Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), will recapitalize 160 trucks from the U.S. Army’s Family of Heavy Tactical Vehicles (FHTV) fleet, including Heavy Expanded Mobility Tactical Truck (HEMTT) A4s and Palletized Load System (PLS) A1s, following an order from the U.S. Army TACOM Life Cycle Management Command (LCMC). Through its recapitalization program, Oshkosh will restore these vehicles to the latest configuration in zero-miles/zero-hours condition at significantly less than the cost of a new vehicle.

“Oshkosh is helping the U.S. military maximize its investments by extending vehicles’ life spans, restoring and modernizing them with the latest technologies and armor packages,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “As trucks have become more advanced – with better protection and improved power trains and suspensions – our recapitalization program has continued providing our customer exceptional value.”

Since 1970, Oshkosh has remanufactured more than 11,000 military vehicles. In addition to recapitalizing its own vehicles, Oshkosh also upgrades vehicles originally built by other manufacturers. Oshkosh has refurbished more than 2,000 heavy-payload vehicles for the Army’s Theater Provided Equipment Refurbishment (TPER) program. The company also has upgraded more than 2,000 Mine-Resistant Ambush Protected (MRAP) vehicles produced by other manufacturers with the Oshkosh TAK-4® independent suspension system to deliver improved vehicle mobility in challenging terrain.

Recapitalization Programs

To recapitalize HEMTT A4s, the suspension is improved and a fully air-conditioned and armor-ready cab is installed, in addition to a more powerful drivetrain. The vehicles are fitted with new components, new technology and a new “zero hours/zero miles” bumper-to-bumper warranty. The HEMTT A4 is the backbone of the Army’s logistics and resupply fleet. It has a 13-ton payload capacity and is available in multiple variants for a wide range of operations. The HEMTT’s anti-lock braking system, traction and air-ride suspension allow troops to navigate wherever the mission demands.

The PLS is the backbone of the Army’s distribution and resupply system. Built to transport ammunition and other critical supplies needed in battle, the vehicle has been used in front-line resupply missions in Bosnia, Kosovo, Iraq and Afghanistan. The latest PLS configuration features an armor-ready cab that is common with the HEMTT A4, as well as a 600-horsepower engine, electrical upgrades and incorporation of an Oshkosh TAK-4 independent front suspension for improved off-road mobility.

Recapitalization of the HEMTT and PLS vehicles is expected to begin in March 2012 and is scheduled to be completed in September 2012. The order has a value of more than $50 million.

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visitwww.oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline, SMIT, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visit www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

Forward-Looking Statements

This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the impact on revenues and margins of the decrease in M-ATV production rates; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during periods of global economic weakness, tight credit markets and lower municipal spending; the Company’s ability to produce vehicles under the FMTV contract at targeted margins and at required volumes to receive and sustain performance-based payments; the duration of the ongoing global economic weakness, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses than equity market expectations; the expected level and timing of U.S. Department of Defense (DoD) procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; the consequences of financial leverage, which could limit the Company’s ability to pursue various opportunities; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to pass on to customers price increases to offset higher input costs; risks related to costs and charges as a result of facilities consolidation and alignment, including that anticipated cost savings may not be achieved; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production delays arising from supplier quality or production issues, especially in light of the significant recent earthquake and subsequent tsunami in Japan; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; risks related to work stoppages and other labor matters, especially in light of the pending contract expiration for union employees at the Company’s Oshkosh defense facilities; the potential for disruptions or cost overruns in the Company’s global enterprise system implementation; the potential for increased costs relating to compliance with changes in laws and regulations; and risks related to disruptions in the Company’s distribution networks. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this press release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.


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DTN News: U.S. Department of Defense Contracts Dated July 20, 2011

Defense News:
DTN News: U.S. Department of Defense Contracts Dated July 20, 2011
(NSI News Source Info) WASHINGTON - July 20, 2011: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued July 20, 2011 are undermentioned;

CONTRACTS

NAVY

Alliant Techsystems, Inc., Defense Electronic Systems, Clearwater, Fla., is being awarded a $109,245,120 fixed-price-incentive-fee contract for engineering and manufacturing development for the Joint and Allied Threat Awareness System for Navy and Marine Corps rotary aircraft. In addition, this provides for the hostile fire indication capability. Work will be performed in: Nashua, N.H. (40.2 percent); Woodland Hills, Fla. (27.6 percent); Clearwater, Fla. (12.9 percent); Danbury, Conn. (7 percent); Melbourne, Fla. (6.2 percent); Dallas, Texas (6 percent); and other sites in the United States (0.1 percent). Work will be completed in September 2015. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured through full and open competition via FAR Part 15; two offers were received. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-11-C-0071).

Kollmorgen Corp, Northampton, Mass., is being awarded a not-to-exceed $23,501,954 undefinitized contract action under previously awarded firm-fixed price, cost-plus-fixed fee, cost-only contract (N00024-11-C-5447) for the fiscal 2011 MK 20 MOD 0 Electro-Optical Sensor System units, including associated equipment, services and emergent provision item orders for spares requirements and level-of-effort engineering services. The MK 20 Electro-Optical Sensor System serves as a check sight and targeting sensor for anti-surface and anti-air warfare, and naval gun fire support missions, as well as ship self defense and situational awareness functions. This contract combines purchases for the U.S. Navy, and the government of Australia (6 percent) under the Foreign Military Sales Program. Work will be performed in Northampton, Mass. (95 percent), and Brattleboro, Vt. (5 percent), and is expected to be completed by November 2013. This contract was not competitively procured. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

General Dynamics-National Steel and Shipbuilding Co., San Diego, Calif., is being awarded an $11,705,854 modification to previously awarded contract (N00024-08-C-4410) for the USS Harpers Ferry (LSD 49) fiscal 2011 extended docking phased maintenance availability. An extended docking phased maintenance availability provides for an extensive renovation and modernization of an LSD-class ship, including alterations and repairs as well as inspection and testing to all ships systems and components ensuring safe and dependable operation of the ship. Work will be performed in San Diego, Calif., and is expected to be completed by July 2012. Contract funds in the amount of $11,705,854 will expire at the end of the current fiscal year. The Southwest Regional Maintenance Center, San Diego, Calif., is the contracting activity.

Raytheon Network Centric Systems, Largo, Fla., is being awarded an $11,009,124 modification to previously awarded contract (N00024-08-C-5203) for a cooperative engagement capability (CEC) system for production of the AN/USG-3B systems and system test for E-2D Hawkeye aircraft. CEC is a sensor netting system that significantly improves battle force anti-air warfare capability by extracting and distributing sensor-derived information and making the data available to all participating CEC units. Work will be performed in Largo, Fla. (47 percent); St. Petersburg, Fla. (20 percent); Dallas, Texas (18 percent); and McKinney, Texas (15 percent). Work is expected to be completed by September 2013. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Superlative Technologies, Inc., Ashburn, Va., is being awarded an $8,033,119 fixed-price, level-of-effort order under GSA Supply Schedule 70 to provide information technology support services for the command, control communications, and computer (C4) systems that support the Office of Naval Research (ONR) headquarters. The scope of the contract is to provide services for program management business process improvement and operational support services to ONR as it further develops its emerging business processes supported by state of the art information technologies. ONR needs all of their legacy C4 support in one enterprise program that will support planning, program management, integration, operation, and maintenance of the communications, computer networks, software applications. This contract contains options, which, if exercised, will bring the contract value to $35,661,623. Work will be performed in Ashburn, Va. (50 percent), and Arlington, Va. (50 percent), and is expected to be completed July 2012. With options exercised the completion date is July 2016. Contract funds will not expire at the end of the current fiscal year. The contract was competitively procured under Request for Quotation N00014-11-R-0276, with nine proposals received. The Office of Naval Research, Arlington, Va., is the contracting activity (N00014-11-F-0276).

Hamilton Sundstrand Corp., Windsor Locks, Conn., is being awarded a $6,596,566 cost-plus-fixed-fee contract to design and manufacture an advanced carbon dioxide removal device capable of qualification for use on a submarine. The Naval Sea Systems Command, in partnership with the Department of Energy’s Pacific Northwest National Laboratory, investigated the possibility of utilizing a dry sorbent to remove carbon dioxide from submarine atmosphere. The dry sorbent is an animated self-assembled monolayer on mesoporous support wherein the monolayer provides the means to capture and release the carbon dioxide. The Navy is procuring innovative designs of the actual carbon dioxide removal unit that will utilize the aforementioned dry sorbent. Work is expected to be performed in Windsor Locks, Conn., and is expected to be completed by October 2012. Contract funds will not expire at the end of the current fiscal year. This contract was competitively awarded via the Federal Business Opportunities website, with two offers received. The Naval Surface Warfare Center, Carderock Division, Ship System Engineering Station, Philadelphia, Pa., is the contracting activity (N65540-11-C-0015).

ARMY

Henry M. Jackson Foundation for the Advancement of Military Medicine, Rockville, Md., was awarded a $23,679,888 cost-plus-fixed-fee contract. The award will provide for the personal and non-personal services to support the Defense and Veterans Brain Injury Centers, to include clinics at various military treatment facilities, veteran hospitals and clinics and rehabilitation centers. Work will be performed in Bethesda, Md.; Fort Sam Houston, Texas; San Diego, Calif.; Richmond, Va.; Tampa, Fla.; Palo Alto, Calif.; Minneapolis, Minn.; Johnstown, Penn.; Fort Bragg, N.C.; Fort Carson, Colo.; Camp Lejeune, N.C.; Fort Hood, Texas; Camp Pendleton, Calif.; and Charlottesville, Va., with an estimated completion date of March 17, 2012. One bid was solicited, with one bid received. The North Atlantic Regional Contracting Office, Walter Reed Army Medical Center, Washington, D.C., is the contracting activity (W91YTZ-11-C-0033).

Rodale Electronics, Inc., Hauppauge, N.Y., was awarded a $23,219,843 firm-fixed-price indefinite-delivery/indefinite-quantity contract. The award will provide for the procurement of enhanced position location reporting systems dual power adapters. Work will be performed in Hauppauge, N.Y., with an estimated completion date of July 14, 2017. The bid was solicited through the Internet, with six bids received. The U.S. Army Contracting Command, Aberdeen Proving Ground, Md., is the contracting activity (W15P7T-11-D-C207).

National Sourcing, Inc., Tampa, Fla., was awarded a $22,785,708 firm-fixed-price contract. The award will provide for the administrative support services for claims processing and support for written inquiries with regard to benefits and entitlements programs which are processed by the Human Resources Command. Work will be performed in Fort Knox, Ky.; Crystal City, Va.; Fort Sam Houston, Texas; and Fort Lewis, Wash., with an estimated completion date of June 30, 2016. The bid was solicited through the Internet, with four bids received. The U.S. Army Mission and Installation Contracting Command, Fort Knox, Ky., is the contracting activity (W9124D-11-C-0011).

Oshkosh Corp., Oshkosh, Wis., was awarded a $20,913,483 firm-fixed-price contract. The award will provide for the procurement of 75 technicians, for a one-year period of performance, necessary for underbody improvement kits installation on the Mine Resistant Ambush Protected All-Terrain Vehicle. Work will be performed in Oshkosh, Wis., with an estimated completion date of Dec. 31, 2011. One bid was solicited, with one bid received. The U.S. Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-09-D-0111).

Global Integrated Security USA, Inc., Reston, Va., was awarded a $9,500,000 firm-fixed-price contract. The award will provide for the modification of an existing contract to provide security support services throughout Afghanistan in support of the U.S. Army Corps of Engineers. Work will be performed in Afghanistan, with an estimated completion date of Feb. 11, 2012. Six bids were solicited, with six bids received. The U.S. Army Corps of Engineers, Winchester, Va., is the contracting activity (W917PM-08-D-0001).

Cajun Constructors, Inc., Baton Rouge, La., was awarded an $8,373,000 firm-fixed-price contract. The award will provide for the construction of the Highway 18 crossing and Union Pacific railroad floodgate in support of the West Bank and vicinity hurricane protection project. Work will be performed in Lake Cataouatche, St. Charles Parish, La., with an estimated completion date of May 16, 2012. The bid was solicited through the Internet, with four bids received. The U.S. Army Corps of Engineers, New Orleans, La., is the contracting activity (W912PB-11-C-0051).

AIR FORCE

L-3 Communications Integrated Systems, Greenville, Texas, is being awarded a $16,897,859 firm-fixed-price contract to incorporate the purchase of deployment labor required to support the deployment of C-27J aircraft to Afghanistan by issuing a delivery order against the subject contract. ASC/WLNJ, Wright-Patterson Air Force Base, Ohio, is the contracting activity (W58RGZ-07-D-0099).

Georgia Tech Applied Research Corp., Atlanta, Ga., is being awarded a $9,222,544 cost-plus-fixed-fee contract for Foreign Military Sales Peace Drive II ALQ-211 (V) 9 integration. The AN/ALQ-213 countermeasures set (CMS) integrates electronic warfare suite functions by providing centralized control/resources management of the F-16 defensive suite. The ALQ-213 CMS software will be tailored in this technical task to integrate the AN/ALQ-211 (V) 9 into the existing F-16 A/B MLU Peace Drive II electronic warfare suite. Work will be performed in Atlanta, Ga., and is expected to be completed July 2014. ESG/PKS DTIC, Offutt Air Force Base, Neb., is the contracting activity (HC1047-05-D-4000).



*Link for This article compiled by Roger Smith from reliable sources
U.S. DoD issued No. 633-11 July 20, 2011
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DTN News - PAKISTAN NEWS: Pakistan 'Tried To Tilt US Policy On Kashmir'

Defense News: DTN News - PAKISTAN NEWS: Pakistan 'Tried To Tilt US Policy On Kashmir'
(NSI News Source Info) TORONTO, Canada - July 20, 2011: Pakistan has spent at least $4m since the mid-1990s lobbying the US Congress and the White House in a covert attempt to influence American policy on the disputed territory of Kashmir, according to a Federal Bureau of Investigation [FBI] affidavit filed in a US court.

Two US citizens have been charged with illegal lobbying, US authorities said on Tuesday.

FBI agents arrested Syed Ghulam Nabi Fai, 62, in Virginia on charges that he failed to register as an agent of a foreign government.

Zaheer Ahmad, 63, was also charged but is believed to be in Pakistan. Both are naturalised US citizens.

The arrest and allegations may further strain relations between Washington and Islamabad which have been fraught since US forces conducted a secret raid in Pakistan in May that killed al-Qaeda leader Osama bin Laden.

The FBI affidavit detailed the alleged scheme in which Fai's organisation, the Kashmir American Council [KAC], received up to $700,000 annually from Pakistan to make campaign contributions to US politicians, sponsor conferences and other promotions.

"Mr Fai is accused of a decades-long scheme with one purpose - to hide Pakistan's involvement behind his efforts to influence the US government's position on Kashmir," Neil MacBride, US Attorney for Eastern Virginia, said.

A Justice Department statement said a witness told investigators that Pakistan's military spy agency, the Inter-Services Intelligence Agency (ISI), created the KAC as a propaganda tool and had been directing Fai's activities for the past 25 years.

He had been in touch with four Pakistani government handlers more than 4,000 times since June 2008, it said.

A US official said the investigation was ongoing and more charges could be forthcoming, but there was no indication Fai had been engaged in spying.

Imtiaz Gul, a political analyst, told Al Jazeera that the aforementioned allegations seem to be part of an "onslaught" against the ISI for its reluctance or lack of cooperation in supporting the US war in Afghanistan.

"It is not a secret that the ISI has been an important element of support for all Kashmiri political and militant groups," Gul added.

Federal election records

Foreign nationals and governments are banned from making contributions to US campaigns and anyone who lobbies on behalf of a foreign government must register with the US justice department.

Fai, his nonprofit group and Ahmad never registered that they were working for the Pakistani government, US authorities said.

"Mr Fai is not a Pakistani citizen and the government and embassy of Pakistan have no knowledge of the case involving him," said a Pakistan Embassy spokesperson.

Fai appeared briefly in federal court in Alexandria, Virginia, where a judge ordered him detained pending a preliminary and detention hearing set for Thursday.

Federal election records showed Fai had given $23,500 to US political candidates since 1997, including $250 to President Barack Obama's presidential campaign as well as $7,500 to Republican Representative Dan Burton of Indiana.

'Donate to Boy Scouts'

Husain Haqqani, Pakistan's ambassador to the United States, said in a message posted on Twitter that an embassy official was in contact with Fai about an event he organised with US officials and scholars but that the FBI "does not allege embassy involvement or knowledge" of his alleged activities.

Burton, an outspoken critic of India's actions in India-administered Kashmir, said in a statement that he was "deeply shocked" by Fai's arrest and "had no inkling of his involvement with any foreign intelligence operation."

"If there is any doubt about the origin of these contributions, I will donate those funds to the Boy Scouts of America," he said. Burton said he had known Fai for 20 years.

The Justice Department said that there was no evidence that any elected officials who received the contributions from Fai or his group knew that it came from the Pakistani government.

Control over Kashmir has been at the centre of hostilities between India and Pakistan since their partition in 1947. The nuclear-armed rivals have fought two of their three wars over the territory.


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DTN News - CHINA NEWS: Xinjiang Riots - China Raises Death Toll To 18 in Violence

Defense News: DTN News - CHINA NEWS: Xinjiang Riots - China Raises Death Toll To 18 in Violence
(NSI News Source Info) TORONTO, Canada - July 20, 2011: Reported by Chinese National News of even date, the Chinese police shot down 14 rioters who attacked a police station in Hotan city of Northwest China's Xinjiang Uygur region, an official has said.

The Communist Party official in Hotan said the attack left four people dead, including an armed police officer, a security guard, a woman and a teenage girl. At least three others were injured.

Rioters killed a security guard while they were trying to break into the Na'erbage police station, Xinhua quoted Ablet Metniyaz, chief of the police station, as saying.

In addition to the security guard, an armed policeman and two civilians died in the incident, he added.

The rioters had taken six civilians and some police staff hostage, and set ablaze and smashed things in the police station, Metniyaz said.

Shouting frantic religious slogans like 'Allah the only God', the rioters ran to the top floor and police opened fire to stop them, said a police official.

China on Wednesday raised the death toll to 18 from a clash at a police station in the restive far western region of Xinjiang, saying that 14 "rioters" died along with two policemen and two hostages in the worst violence there in a year.

Government officials previously said at least four people were killed in what they described as a terrorist attack. But the Germany-based exile group World Uyghur Congress said it was an attack on unarmed protesters.

The clash marked the worst violence in about a year in the far western region, home to many Uighurs, a Turkic-speaking people native to the area, many of whom resent the growing presence of majority Han Chinese in Xinjiang.

Xinjiang is strategically vital to China and Beijing has shown no sign of loosening its grip on the territory, which accounts for one-sixth of China's land mass and holds rich deposits of oil and gas and borders Afghanistan, Pakistan, India and Central Asia.

The exile group had said 20 Uighurs were killed -- 14 beaten to death and 6 shot dead -- and 70 arrested, when police opened fire on protesters, leading to fighting between the two sides.

The Xinjiang government's website (http://www.xinjiang.gov.cn) said that police fatally shot the 14 rioters after giving "legal education and warnings," adding that 18 rioters had bought and made weapons and sneaked into the desert city of Hotan days before the clash on Monday.

The report said the rioters, armed with axes, knives, daggers, Molotov cocktails and explosive devices, "crazily beat, smashed and set on fire" the police station, and hung "flags of extreme religion" on the top of the station.

Two policemen and two hostages were also killed in the clash and four of the rioters were arrested, it added. "It was an organized, premeditated and severe violent terrorist attack to local politics-and-law departments," the report said.

The website also showed three pictures it said were taken on the scene of the incident, showing police with guns storming into a police station, which in one photo was on fire.

"NOT EVEN A WOODEN STICK"

Rebiya Kadeer, who leads the World Uyghur Congress from exile in the United States, denied any of the Uighurs involved in the protest were armed.

"There (was) not even a wood stick in their hands," she told Reuters in Washington. "We keep demanding that the Chinese government stop this kind of terrorist activity against a peaceful people and respect the culture and national identity of Uighurs."

Once a successful businesswoman feted by Beijing, Kadeer is now reviled by China as a violent separatist. She denies the accusations, saying she wants only peaceful change.
The differing accounts and the authenticity of the pictures published by the government could not be independently verified.

Rights groups say Xinjiang remains under tight security, more than two years after its capital Urumqi was rocked by violence between Han Chinese and Uighurs that killed nearly 200 people.

Since then, China has executed nine people it blamed for instigating the riots, detained and prosecuted hundreds and ramped up spending on security, according to state media and overseas rights groups.

The Global Times, a popular tabloid published by Communist Party mouthpiece the People's Daily, said incidents such as that in Hotan "will not lead to collapse as some Westerners have predicted."

"They will not have a colossal impact even if they take place at Tiananmen Square in downtown Beijing," it said in an editorial in its English-language edition.

"Those who underestimate China's social capacity actually underestimate the entire nation," it added. "As for terrorism, the authorities should take a tough stand and ignore unreasonable rebukes from the West."

Beijing, wary of instability and the threat to the Communist Party's grip on power, often blames what it calls violent separatist groups in Xinjiang for attacks on police or other government targets. It says they work with al Qaeda or Central Asian militants to bring about an independent state called East Turkestan.



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