China: US Factory Boss 'Hostage' Speaks Out

An American company boss who is being detained by workers in a Chinese factory has been speaking about his ordeal from behind the metal bars of his office window.

Staff at the Beijing medical supply plant co-owned by Chip Starnes have been holding him for five days in a pay dispute.

He said about 80 workers have been blocking exits around the clock and depriving him of sleep by shining bright lights on his office.

Union officials say Mr Starnes has failed to pay wages for two months, and staff at the factory fear the business is about to close without any promise of severance packages.

Mr Starnes, 42, denied the workers' allegations of unpaid wages and put it down to a "miscommunication".

He said of his "intimidating" captivity: "The first couple of days were very, very tough - nothing physical, more mental type of stuff going on ...

Workers at the factory push journalists away

"Standing around you, anywhere you walk - 14, 16, 18 people following you, walk towards the gate, gate's completely blocked, all accesses.

"They have little shifts where they cover all the exits and entrance points."

He described the dispute as disappointing and said he was keen for it to be resolved internally.

About 100 workers are demanding packages similar to those received by 30 workers at the plastics division of the Florida-based firm, Speciality Medical Supplies, which is moving to India.

One worker, Gao Ping, said she wanted to quit because she had not been paid for two months.

Chu Lixiang, a local union official representing the workers, said they were demanding the portion of their salaries yet to be paid and a "reasonable" level of compensation before leaving their jobs.

Mr Starnes' lawyer visited him on Tuesday.

Similar disputes have happened at other businesses in China after a history of workers sometimes being unprotected when factories close.

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Russian Minister Says Snowden Not On Its Soil

Snowden Affair: The Who And The Why

Updated: 5:06pm UK, Monday 24 June 2013

By Tim Marshall, Foreign Affairs Editor

A look at the different players in the Edward Snowden controversy as the whistleblower tries to evade US justice.

China

There's no hard evidence that China has played a role in this affair but it's difficult to argue against the idea.

Beijing had a man and had a problem. The problem was that hanging on to Mr Snowden could damage its relationship with Washington DC which is its biggest foreign policy challenge.

If it had done, a long-running dispute over the issue would mean that relationship would be complicated.

Now it doesn't have a man, it doesn't have problem, and has been able to poke the US in the eye without leaving much of a fingerprint.

It can also claim the somewhat dubious moral high ground, arguing that Mr Snowden's revelations proved that the Americans, who have long complained about Chinese hacking, was in fact spying on China.

China may have granted Hong Kong more autonomy than most of its regions, but foreign policy remains in Beijing's hands.

And it is almost certain China and Hong Kong liaised to smooth the path of Mr Snowden out of their jurisdiction.

Hong Kong

The only quandary for the Hong Kong authorities was how to keep up appearances.

This was a legal matter which quickly turned into a geo political struggle.

It had to preserve its dignity and the rule of law, but also make sure that what Beijing wanted, Beijing got.

Hence the repeated response to the Americans that the case was 'under review' and that more paperwork was needed.

In fact, very little paperwork was required, not even a valid passport. Mr Snowden travelled out of Hong Kong with a revoked passport.

Russia

The Kremlin says it is 'unaware' of any contact with the Russian authorities and Mr Snowden.

However, the idea that Aeroflot would allow a former American spy, whose name was making global headlines, onto one of their flights bound for Moscow, on a revoked passport, without a Russian visa, does not tally with the way the world works.

That Ecuador may have given him a 'travel document' is just part of the pretence.

Moscow is also busy poking Washington DC in the eye, whilst maintaining a modicum of 'not me guv'.

Mr Snowden did not leave Moscow's airport, thus allowing the pretence of him not passing through a border.

Cuba

If Mr Snowden was passing through Cuba, it does not present Havana with a dilemma.

A transit trip would not sour Washington-Havana relations any more than they already are.

Were he to stay there, that would be a different matter. He was checked in for a flight from Moscow to Havana, had a seat, but the plane left, apparently without him.

Venezuela

Hugo Chavez may be gone but the spirit of his 'Bolivarian Revolution' lives on.

Just last month the successor to Chavez, President Nicolas Maduro, referred to Barack Obama as 'the grand chief of devils'. 

Venezuela is part of the Bolivarian Alliance which includes Cuba, and Bolivia, the country named after the 18th century revolutionary Simon Bolivar.

Members tend to be 'anti-imperialist' and take a delight in tweaking the nose of the US and its perceived global arrogance.

Venezuela can handle the heat of allowing Snowden to transit through its territory; after all, despite the rhetoric between Caracas and Washington DC, the US buys 900,000 barrels of Venezuelan oil every day.

Ecuador

Ecuador is also in the Bolivarian Alliance and President Rafael Correa has impeccable 'anti-imperialist' credentials having granted Wikileaks founder Julian Assange asylum in his country and refuge in the London embassy until Mr Assange can get there.

So far Ecuador is assessing Mr Snowden's asylum request.

As he is an American citizen this case if even more sensitive than the Assange affair, and Ecuador, a poverty stricken country has fewer cards to play than Venezuela.

The signs are it will stay within the spirit of the Bolivarian bloc, and keep quiet about its own trampling over the basic tenets of free speech.

The US

Fail.

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Stephen Lawrence: Met Boss Backs Inquiry Plea

Britain's most senior police officer says he would back a public inquiry into claims that undercover officers hunted for information to smear the family of murdered teenager Stephen Lawrence.

However, Met Police Commissioner Sir Bernard Hogan-Howe warned the process could be lengthy and inconclusive.

Former officer Peter Francis has said he was told to dig up "dirt" on Neville and Doreen Lawrence shortly after 18-year-old architecture student Stephen was killed in an unprovoked racist attack at a bus stop in southeast London in April 1993.

Mr Francis said he was also asked to target Stephen's friend, Duwayne Brooks, who witnessed the murder, and other campaigners angry at the failure to bring his killers to justice.

Bernard Hogan-Howe warns an inquiry could be lengthy

Speaking on radio station LBC, Sir Bernard said: "If you do have a public inquiry, it can take a long time and it's not always conclusive at the end of it.

"Secondly, if there is more wrongdoing discovered, it still has to come back to the police or to the IPCC (Independent Police Complaints Commission) to investigate and prosecute.

"A public inquiry can decide who did what, but if you want to get into a criminal prosecution or a misconduct process, it still has to fall back to the police. You might end up having two parallel things.

Stephen's father, Neville, now lives in Jamaica

"I'm content that the investigation has to continue to establish the facts, and if the Government or Parliament decides that it would prefer a public inquiry, then of course we would support that."

London mayor Boris Johnson said the arguments for a judge-led inquiry are powerful, but quicker processes should be considered.

He said: "Everybody understands that it is important to have an investigation into what happened that is not conducted exclusively by the Metropolitan Police Service. We cannot have them investigating their own alleged malfeasance.

"It has got to be done by somebody independent, as Neville quite rightly says.

"The question is: is a judicial process the right way forward or is there another approach we could take that is quicker, less drawn-out, and which will give the Lawrence family the satisfaction they deserve?"

Theresa May making a statement to the Commons on Monday

He suggested that the new Chief Inspector of Constabulary for England and Wales, Tom Winsor, could be asked to speed up his inquiry instead.

"Everybody has been shocked by the idea the police could mount a barrage of denigration and deprecation of people who were campaigning for justice - that is just not right," said Mr Johnson.

"Everybody can see how wrong it was for somebody to issue those orders, if that is indeed what happened, and we need to get to truth as fast as possible."

Mrs Lawrence said "nothing could justify" smear tactics

Neville Lawrence has called for a judge-led inquiry into suggestions of a smear campaign, dismissing as "completely unsatisfactory" Home Secretary Theresa May's announcement that they would be examined by two continuing inquiries.

In a statement issued from his home in Jamaica, Mr Lawrence said: "I understand that the Home Secretary has announced that she will extend the inquiries of Mark Ellison QC and Operation Herne, I would like to make it clear that I find this completely unsatisfactory.

"I am convinced that nothing short of a judge-led public inquiry will suffice and I have no confidence that the measures announced today will get to the bottom of this matter."

He added: "I've always felt that my family was under greater investigation than those guilty of killing my beloved Stephen. It is unthinkable that in the extremely dark days and months after my son's murder that my family were subject to such scrutiny."

Referring to the claims, Mr Lawrence's ex-wife Doreen told The Guardian newspaper that "nothing can justify" the use of such tactics.

Prime Minister David Cameron has described the allegations as "horrific" and vowed to "get the full truth out".

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Moors Murderer Ian Brady: 'I Am Not Psychotic'

Ian Brady has told his mental health tribunal he is not psychotic as he attempts to be transferred from a high-security hospital to prison.

The Moors Murderer, giving evidence at Ashworth hospital where he has been held for 28 years, also appeared to deny he would try to commit suicide if he is moved to jail.

He compared himself to a monkey in a cage being poked with a stick as he said: "You cannot make plans when you have no freedom of control, movement or anything."

Wearing a dark suit, white shirt and tie and his customary dark glasses, Brady has been speaking publicly at length for the first time since 1966.

The child killer, 75, told the tribunal that it would be "easy" to cope in jail if he was kept locked up 24 hours a day and kept apart from other prisoners.

Brady, who has been on so-called hunger strike since 1999, has previously said he wants to starve himself to death in prison where he cannot be force fed.

Currently, he is fed through a tube in his nose, although the tribunal panel heard on Monday he is actually eating other foods and makes himself toast every morning.

Brady is one of Britain's most notorious killers

Brady described his life behind bars, how he enjoys "eclectic, freewheeling conversation", how he studied German and psychology and how he walks up and down in his cell reciting Shakespeare and Plato.

Brady said he had "more freedom" in prison - he spent time in Durham, Parkhurst and Wormwood Scrubs. He remembered mixing with the Kray twins, the Great Train Robbers and various terrorists.

He also alluded to his time as a barber, when he claimed he would trim the beards of prison staff.

Brady made reference to his notoriety as a prisoner, saying the public and media are obsessed with the Moors murders case.

He said: "Why are they still talking about Jack the Ripper, after a century? It fascinates them so, the dramatic background, the fog, cobbled streets. The Moors is the same thing... Wuthering Heights, Hound Of The Baskervilles."

Sky's Tom Parmenter said: "He was asked his mental health which is crucial to the hearing because it is his claim that he should not be in a high-security hospital but instead an ordinary prison.

"He was asked about talking to himself in jail, and he said when he was in solitary confinement he would memorise the pages of Shakespeare or Plato and then recite them in his cell.

"He said if he drops a glasses case in a corridor and mutters to himself that would be seized by an opportunistic member of staff and used as evidence. But he also said at the tribunal 'Who doesn't talk to themselves?'"

Brady has denied he is psychotic

His legal team says he has a severe narcissistic personality disorder but is not mentally ill and could be treated in prison rather than hospital.

But Ashworth says Brady is still chronically mentally ill and remains a paranoid schizophrenic who needs around-the-clock care.

He has refused medication and therapy for his mental disorders since 2000 as he is "wholly resistant" to any treatment and now tries to hide his mental illness, the tribunal panel was told earlier.

Brady, speaking in a low, halting Scottish accent, said he went on hunger strike after being "attacked" by 12 warders where he had his wrist broken.

He recalled he was in his room and heard chanting of "do not resist". He said the warders were dressed in riot gear and balaclavas and held him down for an hour.

Myra Hindley was also convicted of child killings

He said he was moved by the riot gear staff to another ward at Ashworth and then the next day - September 30, 1999 - began his hunger strike.

His lawyer Nathalie Lieven QC asked him directly why he wanted to leave Ashworth. Brady said originally it was a "decent and progressive" regime when it was the "star" of the specialist hospitals such as Broadmoor and Rampton.

But he complained that the regime changed when Ashworth went from being run by the Home Office to being under the control of the NHS.

"Security ruled care," he said. "Of course, that was not official policy, it was covert." He described Ashworth, and the like, now as a "penal warehouse".

The last time Brady spoke so publicly was in court in Chester when he was convicted 47 years ago and jailed for life for three murders in the 1960s.

Brady and his partner, Myra Hindley, were convicted of luring children and teenagers to their deaths, with their victims sexually tortured before being buried on Saddleworth Moor, east of Manchester.

Brady was given life for the murders of John Kilbride, 12, Lesley Ann Downey, 10, and 17-year-old Edward Evans.

Hindley was convicted of killing Lesley Ann and Edward and shielding Brady after John's murder, and jailed for life.

Both later confessed to the murders of 16-year-old Pauline Reade - whose body was found in 1987 - and 12-year-old Keith Bennett whose body has not been discovered.

Hindley died in hospital, still a prisoner, in November 2002 at the age of 60.

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NHS Cover-Up: Burnham Denies Pressuring CQC

Former health secretary Andy Burnham has denied pressuring the NHS watchdog to tone down criticism of hospitals during his time in the job.

Mr Burnham has faced questions about whether he influenced hospitals' watchdog the Care Quality Commission (CQC) at the time it gave Morecambe Bay NHS Trust a clean bill of health, despite deaths of mothers and babies.

Labour's shadow health secretary insisted he did not cover up any problems at England's hospitals in the run-up to the 2010 General Election and was in fact "actively working to identify them".

An open letter from David Morris, the Conservative MP for Morecambe and Lunesdale, asked Mr Burnham: "How much 'pressure' did you put on the CQC to 'tone down' its criticism of hospitals?

"You were the Labour Secretary of State for Health, when the first whitewash inspection of the Morecambe Bay NHS trust occurred in the spring of 2010. This was a crucial pre-election season for you."

Mr Burnham told Sky News' Dermot Murnaghan that the suggestion he pressured the CQC was "fundamentally disproved" by the decisions he took while in office.

He cited his decision in 2009 to set up the Francis Inquiry to investigate failings at Stafford Hospital and said he was "taking steps" to address concerns about the health watchdog.

He said: "I can't recollect every detail of every discussion that I had in that period with the CQC.

Joshua Titcombe's father wrote to Mr Lansley three years ago

"I am confident that it wasn't brought to me that there was a major problem at Morecambe and action needed to be taken - that didn't happen.

"What I'm saying is I don't know whether concerns were raised as part of a more general meeting and I would have to review all the paperwork to provide that extra assurance."

In his reply to Mr Morris, he denied any hospital problems were swept under the carpet.

David Morris has also asked Mr Burnham to make public any emails, texts and letters in which the CQC was discussed and detail conversations he had with former CQC bosses Cynthia Bower and Baroness Young before the hospital was given a clean bill of health.

Meanwhile, Professor Sir Brian Jarman - head of the major healthcare information provider - has told Sky News that he alerted Morecambe NHS Trust to its high mortality rates in December 2009, but nothing was done.

His comments come as it emerged that another former health secretary, the Conservatives' Andrew Lansley, was warned about baby deaths at Furness General Hospital three years ago.

Mr Lansley received a letter from James Titcombe, whose son Joshua died aged just nine days at the hospital, raising concerns over inaction by the CQC.

"Despite all of these regulatory bodies, Joshua's death was preceded by the preventable deaths of other babies, yet no action was taken in time to make a different (sic) to our son," wrote Mr Titcombe.

Ex-CQC chief executive Cynthia Bower denies there was any cover up

He continues, "...there seems to be a gap in that the CQC can not investigate individual events and the Parliamentary and Health Service Ombudsman do not assess complaints to their office against principles of patient safety".

Mr Titcombe told Sky News he believes the CQC may have been under pressure from senior health officials not to uncover another big hospital scandal.

The reply to his letter from the Department of Health said it was unable to comment on individual cases.

Mr Lansley also faces allegations that he told whistleblower Kay Sheldon he was considering her dismissal from the CQC board after she warned a public inquiry in 2011 that the CQC was in disarray and public safety was at risk.

A Department of Health spokesman said: "The then Secretary of State, Andrew Lansley, was asked to consider removing Kay Sheldon from the CQC Board by the previous Chair of the CQC, Dame Jo Williams. He chose not to remove her.

"He ordered a review to establish the facts around how Kay Sheldon's raising of concerns about the CQC were handled, taking into account all perspectives.

"After considering its recommendations and the representations of Kay Sheldon he decided that she should remain a member of the Board."

Another whistleblower, former CQC head of media Roger Davidson, has told the Sunday Telegraph that he was forced from his job just before the 2010 General Election, after telling how one quarter of NHS Trusts had failed to meet basic hygiene standards.

In addition, a senior NHS official is facing calls to resign over links to Morecambe Bay.

Mike Farrar, who heads the body representing NHS trusts, was in charge of North West Strategic Health Authority (NWSHA) at the time of the failings.

The Parliamentary and Health Service Ombudsman confirmed it was investigating complaints against the NWSHA.

Former bosses of hospitals' watchdog CQC have been accused of covering up a report which criticised their original inspection of the Morecambe Bay NHS Trust. They deny the claims.

The CQC gave the trust a clean bill of health in 2010 despite the deaths of up to 16 babies.

James Titcombe and other families who lost babies at the hospital are now calling for a police investigation and an independent inquiry to establish who knew about the alleged cover-up.

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Suspicious Item Found At Walsall Mosque

By David Crabtree, Midlands Correspondent

Homes around a mosque in the West Midlands were evacuated after the discovery of a suspicious item.

Bomb disposal experts were called to the scene after the discovery outside the Aisha Mosque and Islamic Centre in Walsall.

The area remains condoned off, but 150 people who were moved from the vicinity are now being allowed back in their homes.

Police are not giving any details of the item which was found at 10.15 on Sunday night. However, they say it does not pose a threat.

Forensic experts were at the scene

Superintendent Keith Fraser from West Midlands Police said: "We have launched a full investigation into the suspicious item that has been found. What is going to be key to this is the public's help, helping us to understand why that suspicious item was in the area.

"The force is taking this extremely seriously."

The mosque, in Rutter Street, is known for its open policy, welcoming in people from other religions and a spokesman said it has never had any problems.

Abdul Shahid, who lives locally, said:"Something happened here on Friday night. I think there was some wires and some batteries. The Iman took that thing straight to the police.

"I have been told by neighbours of the mosque that they heard a blast on the night of Friday evening. "

Plenty of help was on hand for those affected by the evacuation.

Local councillor Zahid Ali said: "We have put in comprehensive support for them, including food and whatever other support they require.

"It is absolutely wonderful to see that the communities have come together, supporting the residents and most of those residents are back in their homes.

Police have appealed for information

Zia Ul Haq, from the Aisha Mosque thanked the police and local authority for their help.

"We found this suspicious item which we didn't consider to be very serious or very threatening. but as a precaution we thought that we would call the police and bring this to their attention. They have taken this very seriously and they have supported us wholeheartedly' he said.

:: Anyone with information which may help should call police on 101 http://www.west-midlands.police.uk/contact-us/reporting-crime/

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Whistleblower Edward Snowden Lands In Moscow

The whistleblower Edward Snowden, who leaked details about snooping carried out by the US government, has landed in Moscow after flying from Hong Kong.

His departure from Hong Kong was confirmed by the territory's government earlier after a local newspaper said he had taken a flight to Russia.

The whistleblowing website WikiLeaks, which says it is now representing Snowden said he is using Moscow as a transit point to a third country.

WikiLeaks said he "is bound for a democratic nation via a safe route for the purposes of asylum, and is being escorted by diplomats and legal advisors from WikiLeaks."

"Mr Snowden requested that WikiLeaks use its legal expertise and experience to secure his safety. Once Mr Snowden arrives at his final destination his request will be formally processed."

Spanish Judge Mr Baltasar Garzon, legal director of Wikileaks and lawyer for Julian Assange added: "The WikiLeaks legal team and I are interested in preserving Mr Snowden's rights and protecting him as a person.

"What is being done to Mr Snowden and to Mr Julian Assange - for making or facilitating disclosures in the public interest - is an assault against the people".

Snowden's route since leaving Hawaii and his possible next destinations

WikiLeaks said he was being accompanied by Sarah Harrison, described by them as a UK citizen, journalist and legal researcher.

Russia's Itar-Tass news agency says he may be heading to Cuba and then on to Venezuela.

Itar-Tass said there is a flight ticket in his name from Moscow to Cuba and that he will then fly on to Caracas. It said that his flight to Havana from Moscow, would take place on Monday.

Interfax said a source had told them that as Snowden has no Russian visa, he will be forced to wait for his next flight airside, in the airport terminal.

If he attempts to leave the airport, he could face arrest, according to local police quoted by the news agency.

The South China Morning Post said Snowden's flight left Hong Kong around 11am local time (4am UK time) and he was due to arrive in Moscow around 5.15pm local time (2.15pm UK time).

There has been speculation he may be eventually heading for Ecuador as he is being helped by WikiLeaks, whose founder Julian Assange has also been granted asylum in the South American country.

Waiting camera crews at Moscow airport

Assange is currently in the Ecuador embassy in London. He is unable to leave without being arrested as he is wanted for questioning by Sweden over alleged sexual offences.

Assange confirmed his organisation's involvement to an Australian newspaper the Sydney Morning Herald.

He said: "Mr Snowden is flying in an Aeroflot aircraft over Russian airspace, accompanied by WikiLeaks legal advisers.

"He is expected to land in Moscow at 5pm, local time and will be met by diplomats from the country that will be his ultimate destination. Diplomats from that country will accompany him on a further flight to his destination."

Assange declined to name the country in question in advance of a formal announcement, but described it as a "democratic country" and said that Mr Snowden would be able to travel "by a safe route" and that papers had been issued to ensure his safe passage.

Snowden left Hong Kong after The White House asked the autonomous Chinese territory to extradite him. He had earlier been charged in the US with espionage.

A still picture of Sarah Harrison taken from a video put out by WikiLeaks

The Hong Kong government has said that although the US had sought his extradition, the request did not fully comply with requirements. It said that as a result, he was free to leave.

Snowden was revealed earlier this month to have been the man who leaked to the Guardian and Washington Post newspapers information about monitoring by America's National Security Agency.

Snowden claimed the NSA has been keeping details of millions of phone calls by Americans and monitoring the use by foreigners of internet sites including Google, Facebook and Yahoo.

Russian analyst Andrei Piontkovsky said Snowden's travelling via Russia was a coup for Vladimir Putin.

He said: "Having Mr Snowden on Russian soil and helping him will be a great pleasure for Putin . . . a chance to humiliate America."

The South China Morning Post reported that Snowden's departure was a relief to the Hong Kong government, which had been making all legal preparation to deal with new developments regarding the case.

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Osborne: More Defence Cuts To Come

The Chancellor says he has agreed a deal over the defence budget, but it will involve some "tough choices" and civilian job losses.

George Osborne has revealed he settled with the Defence Secretary Phillip Hammond on Saturday night,  and is making progress with other departments.

He also confirmed that he plans to use the £250m paid by the banks over the Libor scandal to help wounded service personnel.

Mr Osborne will deliver his spending review on Wednesday. He is expected to say that the British economy is "moving from rescue to recovery", while setting out £11.5bn of cuts in Government departments in the year after the next General Election.

Speaking on the BBC's Andrew Marr Show, Mr Osborne said: "I have settled the defence department, which people thought was going to be one of the biggest and most difficult challenges, so I have agreed with Philip Hammond a defence budget.

"It's going to involve some tough choices. The civilian head count is going to have to reduce in our defence department, we are going to have to renegotiate with some of our big suppliers, the contracts.

"But I can tell you there will not be a reduction in our military capability, we are not going to reduce the number of our sailors, soldiers and airmen.

"In fact we are going to be able to spend some more money on things like cyber, which is the new frontier in defence."

Mr Osborne says he has done a deal on defence spending with Philip Hammond

The Chancellor also confirmed plans to use fines from the banks to support wounded British troops and veterans.

"So the people who demonstrated the very worst of British values in the Libor scandal, in the City, are now supporting those who have demonstrated the very best of British values - our soldiers who gave so much to defend the country," Mr Osborne said.

Mr Osborne said the Prime Minister's pledge before the last election to protect winter fuel payments for all pensioners applied to this parliament - but did not confirm that it would extend beyond the 2015 poll.

He said: "All those pensioner benefits, not the basic state pension, all those other pensioner benefits of course we have got to look at how we can afford them."

Alongside the cuts the Chancellor will announce plans for an infrastructure plan to "power Britain back into the economic premier league", using savings to invest in roads, railways, education and science.

Final details of the spending review are still being worked out and Mr Osborne confirmed that some ministries, including Vince Cable's Business Department, are yet to agree their settlements.

Ed Balls calls on Mr Osborne to pump money into the economy

Mr Osborne is expected to tell MPs on Wednesday: "Britain is moving from rescue to recovery. But while the British economy is leaving intensive care; now we need to secure that recovery.

"Full recovery won't be easy but I won't let up in my determination to put right what went so badly wrong."

Mr Osborne has come under pressure to invest in capital projects in order to help the fragile recovery and he will give details of  "a long term infrastructure plan".

He will say: "We're saving money on welfare and waste to invest in the roads and railways, schooling and science our economy needs to succeed in the future.

"I know that times are still not easy for families. But we have a clear economic plan. We've stuck to it. It is working. And I'm determined to go on delivering it. Now, together, we're moving Britain from rescue to recovery let's build an economy that works for everyone."

Shadow chancellor Ed Balls urged Mr Osborne to pump money into the economy now in order to reduce the need for cuts in two years' time.

Writing in the Sunday Mirror, he said: "Instead of planning more cuts two years ahead, they should use this week's spending review to boost growth and living standards this year and next year.

"More growth now would bring in more tax revenues and mean our public services would not face such deep cuts in 2015."

He said the Government should boost lending to businesses with a new British Investment Bank and reintroduce the 10p income tax band.

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Edward Snowden Charged With Espionage

Edward Snowden, the whistleblower who revealed secret government spying programmes, has been charged with espionage by US authorities.

A provisional arrest warrant has been issued and Hong Kong authorities have been asked to detain him.

US prosecutors have filed a criminal complaint, charging Mr Snowden with three offences including unauthorised communication of national defence information, which comes under the Espionage Act, and theft of government property.

He is also charged with willful communication of classified communications intelligence information to an unauthorised person.

All three crimes listed carry a maximum 10-year prison penalty.

The former CIA technician, who has worked for America's National Security Agency (NSA), leaked details of American telephone and internet surveillance programmes.

Court papers list three offences including theft of government property

He revealed the existence of a surveillance system called Prism that was set up by the NSA to track the use of the internet directly from ISP servers.

The NSA and FBI have said that the secret programme provided "critical leads" in preventing "dozens of terrorist events" - although some terror experts dispute the claims.

President Obama has also said the programmes were carried out with "systems of checks and balances" and overseen by the courts and the US Congress.

The Prism revelations sparked outcry in the UK when The Guardian reported that the GCHQ eavesdropping agency had been accessing information about British citizens through Prism.

Mr Snowden fled to Hong Kong on May 20 after copying the last set of documents he intended to disclose at the NSA's office in Hawaii.

Protests in support of Mr Snowden have taken place in Hong Kong

Sky News Asia correspondent Mark Stone said the move marks the official start of government attempts to bring him back to the US.

"We are yet to hear from the Hong Kong police and authorities on whether or not they will act on the request by the Americans to arrest Edward Snowden.

"It's my understanding that they know exactly where he is. The Americans haven't yet asked for his extradition, they have simply asked the authorities to arrest him."

There are reports a private plane is on standby to take Mr Snowden from Hong Kong to Iceland, where he hopes to get asylum.

The latest documents from Mr Snowden claim to show that British spies have secretly accessed fibre-optic cables carrying emails, Facebook messages and other communications.

The Guardian reports that GCHQ can analyse data from the network of cables that carry global phone calls and internet traffic under an operation codenamed Tempora.

It claims that communications between innocent people are being processed, as well as those from people marked out as security threats.

The NSA programme helped to prevent terror attacks, say US spy chiefs

"It's not just a US problem," Mr Snowden told The Guardian.

"The UK has a huge dog in this fight. They (GCHQ) are worse than the US."

Mr Snowden worked for the NSA as an employee of various outside contractors, including Dell and Booz Allen Hamilton.

"I can't in good conscience allow the US government to destroy privacy, internet freedom and basic liberties for people around the world with this massive surveillance machine they're secretly building," Mr Snowden previously told The Guardian.

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Motorway Speed Limit Plans Put In Slow Lane

Plans to raise the motorway speed limit to 80mph have been moved into the slow lane after it was decided the idea was "not a priority".

The policy change was proposed in 2011 by then Transport Secretary Philip Hammond but his successor, Patrick McLoughlin, is said not to share his enthusiasm.

Mr Hammond claimed the 70mph limit, introduced in 1965, had been "discredited" and a rise to 80mph would boost the economy.

But the idea has been condemned by road safety groups and Downing Street reportedly feared raising the speed limit would alienate women voters.

In an interview with The Times, Mr McLoughlin said the policy was not a priority: "You would have to do trials in certain areas so it's not something that's a high priority."

A source close to the Transport Secretary told the newspaper: "This is not going to happen with Patrick McLoughlin as Transport Secretary.

"Safety is paramount to him and his view of how to run the roads and he would not be confident about how you would do it."

A Department for Transport spokesman confirmed that Mr McLoughlin's reported remarks were correct.

The plans have not been completely abandoned, but are no longer a priority, said the spokesman.

Mr Hammond announced the plan at the 2011 Tory party conference, saying the 70mph limit had resulted in millions of motorists routinely breaking the law.

The 70mph speed limit was first introduced in the 1960s

He said: "The limit was introduced way back in 1965 - when the typical family car was a Ford Anglia."

He claimed a rise to 80mph would "restore the legitimacy" of the system and benefit the economy by "hundreds of millions of pounds".

But last year campaign groups estimated that raising the motorway speed limit to 80mph would cost society an extra £1bn a year, including £766m in fuel bills and more than £62m in health costs.

The groups, which include road safety charity Brake, the Campaign for Better Transport (CBT) and Greenpeace, also estimated that the higher limit would lead to 25 extra deaths and 100 serious injuries a year, as well as 2.2 million more tonnes of carbon emissions.

However, Neil Greig, director of policy and research at the Institute of Advanced Motorists, said: "Once again we are getting confused messages from the Department for Transport on this issue.

"With a little imagination and some investment the Dutch have shown that you can have a safe 80mph limit on the best parts of the motorway network.

"What Patrick McLoughlin has learned from Holland, however, is that the policy was not as popular as the politicians thought it would be and they promptly lost the next election."

Professor Stephen Glaister, director of the RAC Foundation, said: "The real stumbling block is likely to have been enforcement.

"Police already tend to give speeding drivers some leeway, so it was quite feasible that an 80 mph limit would have actually meant 90 mph in practice and that proved a step too far for ministers."

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