Swedish vote could end love story with left (AP)

STOCKHOLM � Swedish politics used to be like a long marriage with brief spells of infidelity.

Voters always returned to the long-governing Social Democrats � guardians of the Nordic country's high-tax welfare state � after short-lived flirts with center-right coalitions.

That love story, it appears, may be coming to an end as Sweden heads into national elections Sept. 19.

Most recent polls suggest Prime Minister Fredrik Reinfeldt, 45, can capitalize on the Swedish economy's strong revival after the global slump to pull off what no center-right leader has done before: winning re-election after serving a full term.

Meanwhile, the Social Democrats have not enjoyed their habitual rebound after a 35-percent showing in the previous election four years ago, their worst result since universal suffrage was adopted in 1919. Only a last-hour surge can avert an even lower result next Sunday, and for the first time the Social Democrats have had to join up with environmentalists and former communists in a Red-Green alliance to have any chance of regaining power.

"I think we have shown, and we have won the confidence among the Swedish people, that we are able to govern," Reinfeldt told foreign reporters on Sept. 7.

Boosting his case are statistics showing Sweden's economy is one of Europe's strongest � it's expected to grow by more than 4 percent this year � while the 2010 budget deficit is on track to be the smallest in the 27-nation EU. His program of trimming taxes in a nation long accustomed to some of the highest tax rates in the world appears to have caught on with the public.

Still, it's not a done deal for Reinfeldt. Polls show his four-party coalition is about five percentage points clear of the Red-Green alliance led by Social Democratic leader Mona Sahlin, but the gap typically narrows in the final days of Swedish election campaigns.

On the sidelines of that contest, Sweden could join the swelling ranks of European countries with a far-right, Islam-bashing party in Parliament. If the Sweden Democrats clear the 4 percent bar � recent polls place them just above it � they could deny either bloc a majority and prompt messy coalition talks.

This political reality is new to a country accustomed to near-constant Social Democratic rule since the 1930s, either with an outright majority or with the backing of the smaller Left and Green parties. Legendary Social Democratic leaders include Tage Erlander, who was prime minister for 23 years following World War II, and Olof Palme, who was shot in Stockholm in 1986 in a still-unsolved murder.

"It's a big historic change that the Social Democrats have become a regular political party," said political analyst Arne Modig. "Voters long believed the Social Democrats had a special ability to run the country. But that perception has changed in recent years."

That doesn't mean the country of 9.4 million people has given up on its cherished social model of using high taxes to sustain a cradle-to-grave welfare system that provides free education, affordable health care and protection for the sick and poor, and lets working couples share 16 months of paid parental leave.

A generous welfare system is taken for granted in Scandinavian countries, and campaigning against it would be political suicide.

Reinfeldt insists that his conservative Moderate Party, the biggest of the four coalition parties, wants to secure the welfare system by getting more people to work and paying taxes.

To that end, his government has cut income taxes while restricting benefits for the sick and unemployed. Compensation levels are still relatively high: Workers who lose their jobs can receive a maximum of 80 percent of their previous salary for up to 200 days and 70 percent for the next 100 days.

Sweden's jobless rate was 8.5 percent in July, below the EU average of 9.6 percent.

The tax breaks have affected all income brackets, helping dispel the long-held perception that the Moderates only look after Sweden's wealthy elite. They have not forgotten about the rich, though. The government abolished Sweden's wealth tax in 2007.

Sahlin, a 53-year-old avid Bruce Springsteen fan who hopes to become Sweden's first female prime minister, says the Moderates' transformation into a welfare-conscious party is an illusion.

"We've had during four years a very united, strategic, Moderate-led government with a very clear mission: It's been about putting tax cuts ahead of continuing to build the welfare system," Sahlin said in an interview with The Associated Press.

"If they were to continue four more years, the image of Swedish welfare as it has been known, will look totally different."

Sweden retains some of the world's highest taxes. Reinfeldt said total tax revenue as a percentage of gross domestic product is down to just above 45 percent, from more than 50 percent during the previous Social Democratic government that held power for 12 years.

By comparison, the tax-to-GDP ratio was 28.3 percent in the U.S. and 36.6 percent in Britain, according to 2007 statistics from the Organization for Economic Cooperation and Development.

Perhaps the most obvious change since Reinfeldt's government took office is about 110,000 people were receiving long-term sickness benefits at the end of last year, down from nearly 300,000 seven years earlier.

Critics say the government is forcing sick people back to their jobs by strangling their benefits. Supporters contend that the measures are putting welfare cheats back to work.

Reinfeldt's coalition has also come under fire from senior citizens, who felt shortchanged when taxes on salaries were cut, but not pensions.

Both the Red-Green bloc and Reinfeldt's coalition have promised tax cuts for pensioners if they win the election.

Previous center-right governments, in 1976-1982 and 1991-1994, were marred by internal dissent and budget deficits, which Reinfeldt said had given his side a reputation of being unfit to govern.

"Is it different this time?" he asked. "I think you can walk the streets of Stockholm and other parts of Sweden and they will say 'yes.'"

But Farnaz Gerogan, a 53-year-old immigrant from Iran, said she would vote for the Social Democrats because "they think about everyone: people who don't have jobs and people who need help."

"I don't want Sweden to become a capitalist country," said Gerogan, a Stockholm resident who has been unemployed for the past three months. "Social Democracy is an advantage for Sweden. That's why immigrants come here."

Jonas Lundvall, a 42-year-old banker, said he would back one of the center-right parties.

"We have to take care of those who work too, not just focus on the sick and elderly," he said. "After all it's those who work who generate money for society by paying taxes."

___

Associated Press Writer Louise Nordstrom contributed to this report.

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Palin, Beck recall 9/11 attacks at Alaska event (AP)

ANCHORAGE, Alaska � Sarah Palin and Glenn Beck teamed up in the former Alaska governor's home state Saturday night, delivering their messages to a crowd of thousands and recalling their thoughts and feelings the day of the 9/11 attacks.

Palin applauded the conservative commentator as an inspiration for millions, saying he represents why so many citizens never have to apologize for being American.

She also laughingly noted "goofy" media speculations about her real intentions for appearing on an Anchorage stage with Beck.

"Evidently I'm supposed to make a big announcement here, Glenn and I together, make some big announcement, maybe about the 2012 election or something," the potential 2012 presidential contender said to cheers and whistles.

Beck played along, telling Palin that he would not be a candidate.

"I'd like to announce that in 2012, we will both be ... voting," Beck said, pausing for comic effect.

Palin and Beck, a popular Fox News Channel personality, took turns recalling what they were doing when they heard of the 9/11 terrorist attacks.

Palin, who was mayor of Wasilla at the time, said she got a call from the town's police chief about the attacks, then turned on her television.

"It looked unreal that this was happening to our country," she said.

She said she shut down city hall, then went over to her church to pray for the country.

Beck said he was getting ready for work when he learned of what had happened in New York and at the Pentagon.

"Here we are so many years later, and I fear we are forgetting," he said.

Earlier this week, Palin promoted Saturday's event at the Dena'ina Civic and Convention Center on her Facebook page, saying Beck could be counted on to make for an interesting and inspiring night.

"I can think of no better way to commemorate 9/11 than to gather with patriots who will 'never forget,'" Palin wrote.

Thousands of fans who paid between $73.75 and $225 for tickets gathered inside the center to see the two tea party favorites.

Beck was to donate his speaking fee from the event, and Palin wasn't paid for her appearance, according to Christopher Balfe, president of Beck's media company. The amount of the fee wasn't disclosed, and was to go to the Special Operations Warrior Foundation, which provides scholarships and services to families of military members.

The event originally featured only Beck, according to Christopher Cox of Northern Stage Co. in Anchorage. Only later did Cox think of adding Palin and she agreed to participate.

Outside the downtown center, about 100 protesters waved signs and denounced Palin and Beck as intolerant fearmongers spreading divisiveness across the country.

Holding a sign that said "Freedom isn't just for zealots," Brian MacMillan of Anchorage urged Palin and Beck supporters to ease up on President Barack Obama.

"Give the man in charge his due," he said. "He's doing the best he can."

Many Beck fans attending the event were equally passionate.

"I support a lot of what Glenn Beck has to say, especially when it comes to smaller government and getting God back to America," Dan Garrett of Wasilla said.

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Iran prosecutor ready to release American woman (AP)

TEHRAN, Iran � A senior Iranian prosecutor said Sunday that authorities will release an American woman on $500,000 bail because of health problems, more than a year after she was jailed with two other Americans and accused of spying.

The news came during a weekend of start-and-stop announcements about the release of Sarah Shourd, who was detained with two friends, Shane Bauer and Josh Fattal, along the Iran-Iraq border on July 31, 2009. Shourd's mother has said she has been denied treatment for serious health problems, including a breast lump and precancerous cervical cells.

There were no details on when she would be released, and it was also unclear if the bail announcement meant she would be free to leave the country or would have to remain in Iran to stand trial.

"Based on reports and the approval of the relevant judge about the sickness of Ms. Shourd, her detention was converted to $500,000, and if the bail is deposited, she can be released," the official IRNA news agency quoted prosecutor Abbas Jafari Dowlatabadi as saying.

He said the decision has been relayed to her lawyer. Reached by telephone, her lawyer, Masoud Shafiei, refused to make any immediate comment on the announcement.

Shourd, who has been held in solitary confinement, was to have been released Saturday as an act of clemency to mark the end of the Muslim holy month of Ramadan after the intervention of Iran's president, Mahmoud Ahmadinejad. But the judiciary abruptly halted that planned release, indicating such a decision would have to first go through the courts.

Iran has accused the three Americans of illegally crossing the border and spying in a case that has deepened tensions with Washington � which has led the push for tougher sanctions on Iran over its nuclear program.

Their families say the Americans were hiking in Iraq's scenic north and that if they crossed the border, they did so unwittingly.

The prosecutor said the two other Americans would remain in custody. Dowlatabadi added that the prosecution's cases against the three were nearly complete and that a judge has issued indictments for all three on charges of spying.

The judiciary appeared to be using the case to flex its muscles in an internal tussle with President Ahmadinejad. On Friday, the Foreign Ministry had announced that plans for her release on Saturday were the result of Ahmadinejad's personal intervention and reflected the "special viewpoint of the Islamic Republic of Iran on the dignity of women."

Hours later, judiciary officials said the release was off � an embarrassing rebuke to Ahmadinejad that also dashed the hopes of Shourd's family. On Saturday, Dowlatabadi emphasized that any announcement about the American's release "would only come through the judiciary system."

The mixed signals point to one of the main fissures in Iran's conservative leadership: Ahmadinejad and his allies against the powerful judiciary overseen by Iran's supreme leader.

In the past year, Iranian authorities have allowed bail or converted jail sentences to fines for two other high-profile detainees.

In May, French academic Clotilde Reiss was freed after her 10-year sentence on espionage-related charges was commuted to a fine equivalent to $300,000.

Canadian-Iranian journalist Maziar Bahari of Newsweek was freed on $300,000 bail in October 2009 after nearly four months detention following the crackdown after the disputed presidential election. He was later sentenced in absentia to more than 13 years in prison and 50 lashes.

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NATO says 5 insurgents killed in Afghanistan (AP)

KABUL, Afghanistan � NATO says a Taliban commander who planned attacking polling stations during next week's elections and four other insurgents have been killed in eastern Afghanistan.

The military alliance said in a statement Sunday that NATO and Afghan forces killed the five on Saturday night in a village compound in the Nangarhar province after they displayed "hostile intent."

It said intelligence reports indicate the Taliban commander was planning to conduct rocket attacks against voting centers during the Sept. 18 parliamentary elections. The Taliban has vowed to attack polling stations and warned Afghans not to participate in what it called a sham vote.

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Iran prosecutor ready to release American woman (AP)

TEHRAN, Iran � A senior Iranian prosecutor said Sunday that authorities will release a jailed American woman on $500,000 bail because of health problems, another sudden about-face by Iran in a case that has added to tension with the United States.

The news came during a weekend of start-and-stop announcements about the release of Sarah Shourd, who was detained with two friends, Shane Bauer and Josh Fattal, along the Iran-Iraq border on July 31, 2009, and accused of spying.

There were no details on when she would be released. Tehran prosecutor Abbas Jafari Dowlatabadi said the conditions of her bail did not bar her from leaving the country, though her case will still go to trial along with those of the other two Americans, who must remain in custody.

"Based on reports and the approval of the relevant judge about the sickness of Ms. Shourd, her detention was converted to $500,000 bail, and if the bail is deposited, she can be released," the official IRNA news agency quoted Dowlatabadi as saying.

Shourd's mother has said she has been denied treatment for serious health problems, including a breast lump and precancerous cervical cells.

The prosecutor said the decision has been relayed to her lawyer. Reached by telephone, her lawyer, Masoud Shafiei, refused to make any immediate comment.

Shourd, who has been held in solitary confinement, was to have been released Saturday as an act of clemency to mark the end of the Muslim holy month of Ramadan after the intervention of Iran's president, Mahmoud Ahmadinejad. But the judiciary abruptly halted that planned release, indicating such a decision would have to first go through the courts.

Iran has accused the three Americans of illegally crossing the border and spying in a case that has deepened tensions with Washington � which has led the push for tougher sanctions on Iran over its nuclear program.

Their families say the Americans were hiking in Iraq's scenic north and that if they crossed the border, they did so unwittingly.

The prosecutor said the two other Americans would remain in custody. The prosecution's case against the three is nearly complete and a judge has issued indictments for all three on charges of spying, he said.

"The suspects did not confess but we have enough reasons in hand for their spying charges," Dowlatabadi said.

He rejected any link between the decision to grant Shourd bail and the return to Iran in July of nuclear scientist Shahram Amiri. Iran had accused the U.S. of abducting Amiri, while Washington said he was a willing defector who later changed his mind.

In the past, Ahmadinejad has suggested the three Americans could be traded for Iranians claimed to be held by the U.S.

The judiciary appeared to be using the issue of Shourd's release to flex its muscles in an internal political tussle with President Ahmadinejad. On Friday, the Foreign Ministry had announced that plans for her release on Saturday were the result of Ahmadinejad's personal intervention and reflected the "special viewpoint of the Islamic Republic of Iran on the dignity of women."

Hours later, judiciary officials said the release was off � an embarrassing rebuke to Ahmadinejad. On Saturday, Dowlatabadi emphasized that any announcement about the American's release "would only come through the judiciary system."

The mixed signals point to one of the main fissures in Iran's conservative leadership: Ahmadinejad and his allies against conservative rivals in the powerful judiciary overseen by Iran's supreme leader.

In the past year, Iranian authorities have allowed bail or converted jail sentences to fines for two other high-profile detainees.

In May, French academic Clotilde Reiss was freed after her 10-year sentence on espionage-related charges was commuted to a fine equivalent to $300,000.

Canadian-Iranian journalist Maziar Bahari of Newsweek was freed on $300,000 bail in October 2009 after nearly four months detention following the crackdown after the country's disputed presidential election. He was later sentenced in absentia to more than 13 years in prison and 50 lashes.

Iran has also used the case of the three Americans for propaganda purposes.

In May, Iran allowed the mothers of the three detainees to visit them in Iran, releasing them temporarily from Tehran's Evin prison for an emotional reunion at a hotel that received extensive coverage on the government's main English-language broadcast arm.

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State media: Iran ready to release American woman (AP)

TEHRAN, Iran � A senior Iranian prosecutor said Sunday that authorities will release an American woman on $500,000 bail because of health problems, more than a year after she was jailed with two other Americans and accused of spying.

The news came during a weekend of start-and-stop announcements about the release of Sarah Shourd, who was detained with two friends, Shane Bauer and Josh Fattal, along the Iran-Iraq border on July 31, 2009. Shourd's mother has said she has been denied treatment for serious health problems, including a breast lump and precancerous cervical cells.

There were no details on when she would be released.

"Based on reports and the approval of the relevant judge about the sickness of Ms. Shourd, her detention was converted to $500,000, and if the bail is deposited, she can be released," the official IRNA news agency quoted prosecutor Abbas Jafari Dowlatabadi as saying.

He said the decision has been relayed to her lawyer.

Shourd, who has been held in solitary confinement, was to have been released Saturday as an act of clemency to mark the end of the Muslim holy month of Ramadan after the intervention of Iran's president, Mahmoud Ahmadinejad. But the judiciary abruptly halted that planned release, indicating such a decision would have to first go through the courts.

Iran has accused the three Americans of illegally crossing the border and spying in a case that has deepened tensions with Washington � which has led the push for tougher sanctions on Iran over its nuclear program.

The prosecutor said the two other Americans would remain in custody.

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China summons Japanese ambassador again over boat (AP)

BEIJING � China's most senior foreign policy official increased pressure on Japan on Sunday by summoning its ambassador to again demand the immediate release of Chinese fishermen and their boat detained near disputed islands.

The Chinese vessel collided with Japanese patrol boats after ignoring warnings to leave the area and refusing to stop for an inspection last week, Japan's coast guard said.

China has said the confrontation could damage its relations with Japan, underlining the sensitivity of the territorial dispute over the East China Sea, one of several that trouble China's ties with its Asian neighbors.

State Councilor Dai Bingguo summoned Japanese Ambassador Uichiro Niwa in the early hours of Sunday, China's Foreign Ministry said in a statement.

It was the fourth time the ambassador was called in over the incident, and it was highly unusual for an official of Dai's rank to intercede.

Beijing is worried about losing face in front of the Chinese public if it appears unable to protect the country's sovereignty, and a possible nationalistic backlash against the government. The spat has stirred passions in China, with newspapers and activists calling for a tough stand against any threats to China's territorial claims.

Tuesday's incident happened off Japan's Kuba island, just north of the disputed islands, about 120 miles (190 kilometers) east of Taiwan. The islands are controlled by Japan but are also claimed by China and Taiwan.

Dai urged Japan to find a "wise political resolution" and release the crew and boat immediately, the statement said. Niwa said he would report the Chinese government's position to Tokyo, the Chinese ministry said.

On Sunday, Japanese coast guard officials took the Chinese fishing boat and its crew out to sea off the southern island of Okinawa to test the vessel's capabilities. A Japanese vessel closely trailed the fishing boat as it maneuvered in the ocean with members of the coast guard on board.

Officials also found fish on the ship and were investigating whether they were caught illegally in waters that Japan considers its territory, according to public broadcaster NHK.

China's Foreign Ministry said it firmly opposed any form of investigation by Japanese authorities into the fishing boat.

"Japan's so-called gathering of evidence is illegal, invalid and futile," spokeswoman Jiang Yu said in a statement. "China urges Japan to stop actions that escalate the situation and immediately and unconditionally release the crew and ship, this is the only way to solve the problem."

A group of about 20 Chinese activists, meanwhile, planned to sail Sunday from the eastern coastal city of Xiamen to waters near the disputed islands � known as Senkaku in Japanese and Diaoyu in Chinese.

They plan to unfurl banners proclaiming Chinese sovereignty over the territory and protest "Japanese aggression," said organizer Li Yiqiang. If the trip goes as planned, they are expected to arrive Tuesday, he said by phone.

A Japanese court has allowed prosecutors to keep the boat captain in custody until Sept. 19 before deciding whether to press charges. Japanese authorities say the other 14 crew members have remained on the fishing boat and cannot land in Japan because they do not have passports but are free to return home if China sends a vessel to pick them up.

___

Associated Press writer Jay Alabaster contributed to this report from Tokyo.

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Different pope, different times for British trip (AP)

VATICAN CITY � The Falklands war was in full swing and John Paul II was in London as the first pope ever to set foot on English soil.

Even as he snubbed Margaret Thatcher and prayed for peace in implicit criticism of Britain � whose troops were battling Catholic Argentines � the pontiff received a rapturous welcome and was described in glowing terms by the Archbishop of Canterbury.

His successor, Benedict XVI, can expect a far cooler � if not at times downright hostile � reception in his upcoming state visit.

It all underscores the contrasting public fortunes of the two leaders of the church. John Paul was an international superstar who could send a thrill even through non-Catholics and made many people forget how at odds he was with their personal views. Benedict seems to step into crisis and controversy at every turn when he ventures abroad on bridge-building missions.

In 1982, Robert Runcie, then Archbishop of Canterbury, said John Paul came to Britain "with the grace of a pilgrim and a prophet." Runcie's successor, Rowan Williams, told the BBC in April that Benedict would be welcomed "as a valued partner, and that's about it."

Benedict's visit has been fraught with controversy ever since it was announced by Buckingham Palace in May.

There have been complaints over the costs to British taxpayers for the Sept. 16-19 trip, anger and revulsion over the church's clerical sex abuse crisis, and a feeling of betrayal among Anglicans upset over the Vatican's efforts to woo conservative members of their church.

Although the Polish-born John Paul held virtually the same views on church doctrine as Benedict, he was at the height of his popularity at the time, celebrated for standing up to communism during the Cold War. His charisma helped him make strong connections with people who did not share his faith or conservative social views. Problems of pedophile priests were already brewing but kept from public knowledge, only coming out when the abuse scandal exploded in the United States toward the end of his papacy.

Top British politicians say they welcome Benedict's visit, but seem compelled to state their differences with him.

During a televised debate in April before general elections, David Cameron, now prime minister, said he wanted the visit to be a success but "do I agree with everything the pope says? No."

"I don't agree with him about contraception. I don't agree with him about homosexuality and I think the Catholic church has got some very, very serious work to do to unearth and come to term with some of the appalling things that have happened and they need to do that but I do think we should respect people of faith," Cameron said.

Benedict will meet with the queen at a castle in Scotland shortly after arriving and with Cameron in London on Saturday.

John Paul's visit was two years in the planning, but only confirmed days before departure because of complaints from Argentina, which was at war with Britain after invading the Falkland islands, which it claims are its own and refers to as Las Malvinas. The pope agreed to visit Argentina shortly after returning from England, where he prayed for peace during every public event.

"We cannot forget that an armed conflict is taking place � brothers in Christ fighting in a war that imperils peace in the world," he said during one Mass.

John Paul also dropped plans to meet with Prime Minister Margaret Thatcher; the official reason was to stress that it was a pastoral and not a state visit.

But he did meet with Queen Elizabeth, whose ancestor, Henry VIII, established the Church of England after breaking with Rome in 1534 over the Vatican's refusal to annul his first marriage to Catherine of Aragon.

John Paul said he felt "deeply moved" to be the first pope on English soil in what was described as a pilgrimage of reconciliation to a country that officially discriminated against Catholics until the 1820s.

Catholics, less than 10 percent of the population, still face a problem marrying into the royal family. They can marry in, but the royal loses his or her place in the succession.

There were scattered demonstrations during John Paul's visit, mainly by small groups calling the pope "Anti-Christ" and by followers of the Rev. Ian Paisley, the militant Northern Ireland Protestant leader.

In contrast, for this papal visit, a group called Protest the Pope has lined up gay, feminist and secular groups to stage protests against the visit � and there has even been talk of serving the pope with an arrest warrant because of the abuse scandal.

Although Benedict has not been accused of any crime, some British lawyers have questioned whether the pope should have immunity as a head of state and whether he could be prosecuted under the principle of universal jurisdiction for an alleged systematic cover-up of sexual abuses by priests.

The German-born Benedict has never sought to be a crowd pleaser like his predecessor, having assumed the papacy after two decades in the back rooms of power as the Vatican's ideological chief. At 83, he is 20 years older than John Paul when he made his British pilgrimage and drew an estimated 2 million people to his events.

Benedict, who speaks good English among other European languages, seems more comfortable among small groups.

Monsignor Mark Langham, the British-born Vatican official in charge of relations with Anglicans, recalled the excitement of John Paul's visit as he spoke to The Associated Press at the English College seminary in Rome's historic center. Forty-four of its former students were martyred in England in past centuries.

"The Falklands war was going on, the forthcoming marriage of Prince Charles and Lady Diana had just been announced, the pope was coming. We felt we were living through history. The enthusiasm, the excitement was something you could feel."

He acknowledged that the atmosphere over Benedict's trip is not the same.

"We're in a different era now, and Pope Benedict is not Pope John Paul II. I think for various reasons there have been problems and issues. What I have noticed is that in the last few weeks and days, excitement is ratcheting up and I think people are beginning to take up and take notice about what's going to happen."

And what will happen on this visit?

"I think it will be one perhaps where people came to see John Paul, they'll come to hear Pope Benedict," Langham said.

___

Associated Press writer Nicole Winfield in Rome contributed to this report.

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State media: Iran ready to release American woman (AP)

TEHRAN, Iran � Iranian state TV is reporting that a senior prosecutor is ready to release a jailed American woman on bail.

Sarah Shourd was to have been released Saturday as an act of clemency to mark the end of Ramadan after the intervention of Iran's president, Mahmoud Ahmadinejad. But the judiciary abruptly halted the release.

On Sunday, Iran's state-run Press TV said the Tehran prosecutor is now ready to release her on bail.

Shourd and two other Americans, Shane Bauer and Josh Fattal, were detained along the Iran-Iraq border on July 31, 2009. They have been accused of illegally crossing the border and spying in a case that has deepened tensions with Washington � which has led the push from greater sanctions on Iran over its nuclear program.

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Schwarzenegger tries out China's high-speed rail (AP)

SHANGHAI � Gov. Arnold Schwarzenegger is engaging in a little window-shopping of China's new high-speed train lines while peddling Californian exports and tourism in the world's second-largest economy.

His own state budget $19 billion in the red, Schwarzenegger says he is hoping for some "creative financing" from Asia to help lower costs and get California's proposed high-speed rail lines up and running.

Industry experts say cash-rich China may be best placed to help with funding, and less risk averse than others whose banks are still recovering from the financial crisis. That could prove a key competitive advantage as it goes head-to-head against better established high-speed rivals rail in Asia and Europe.

"That is something very attractive about the Chinese which the Europeans will find very difficult to compete with," said Michael Clausecker, director general of Unife, the Association of the European Rail Industry. "Even in America, finance is a scarce resource. Rail investments need a lot of investment up front."

China has invested huge prestige, and tens of billions of dollars, in its high-speed rail industry � building on mostly European know-how acquired in joint ventures with Siemens AG, Alstom SA and to a lesser extent Japan's "Shinkansen" bullet train operators. It is gearing up to fight for a chunk of what Unife estimates to be a 122 billion euros ($155 billion)-a-year global market for railways.

Schwarzenegger had a photo opportunity Sunday at a train station on a high-speed rail link between Shanghai and Nanjing. He spent Saturday, the first day of his weeklong trade mission of nearly 100 business leaders, hobnobbing in Hangzhou with Jack Ma, founder of Internet trading behemoth Alibaba.com, and other Chinese entrepreneurs.

The governor will also try out high-speed rail in Japan and South Korea � two others among at least seven countries that have officially shown interest in helping develop California's system � assuming the state can find the money.

"There is great potential over there and in Japan and Korea, when it comes to building our high-speed rail and also providing the money for building the high-speed rail," Schwarzenegger told reporters before leaving California.

The fact-finding mission is also aimed at better understanding the technologies on offer.

"He will learn a lot from that," said T.C. Kao, director of the Railway Technology Research Center at National Taiwan University, who has introduced many U.S. delegations to the technology.

"They get the impression, 'We need it.' They feel behind," he said. "You have to experience it to understand."

The U.S. is the world leader in freight railway technology but has almost no high-speed rail expertise. It will have to import the technology for the 13 regional projects that have won $8.5 billion in initial federal funding, with $2.5 billion more to come this year and hundreds of billions needed before lines are up and running.

China already has the world's longest high-speed rail network, about 4,300 miles (6,920 kilometers) of routes, including nearly 1,250 miles (2,000 kilometers) that can run at top speeds of 220 miles per hour (350 kph). It aims to develop 9,900 miles (16,000 kilometers) of such routes by 2020.

All of that construction involves "highly sophisticated work on infrastructure, on rails and design of track structure," says Chris Barkan, director of the Railroad Engineering Program at the University of Illinois at Urbana-Champagne, who recently toured facilities in China, Japan, South Korea and Taiwan.

A visit to a mammoth manufacturing plant in the eastern city of Qingdao "absolutely blew me away," he says.

Having already build up a huge capacity for manufacturing trains and the systems to serve them, China is looking for a chance to prove it has the wherewithall to export the most advanced technology.

"China now owns the most advanced high-speed rail technology and winning contracts in the U.S. would surely help it to sell more to other countries," said He Xin, an industry analyst at Donghai Securities in Beijing.

Other industry experts say it is difficult to know just how much China has achieved on its own. Both European and Japanese industry officials have expressed skepticism.

But Chinese officials insist the technology they plan to export is truly their own. They also have hired American lawyers to check for potential intellectual property problems, says T.C. Kao, director of the Railway Technology Research Center at National Taiwan University.

"China is probably pretty sure it can pass the test on IP," says Kao, former vice president of Taiwan's high speed rail company. "China has copied, yes, but it has improved on the technology. Many things have been altered."

Kao and other experts say that as newcomers, the Chinese would face logistical and regulatory challenges in entering a brand new market, compared with companies like Siemens, Alstom SA and Canada's Bombadier Inc. which already have train factories in the U.S.

But China's experience in gradually raising the speeds of its train systems and then adding high-speed rail, sometimes on dual-use tracks, may give it an edge in designing systems suitable for the U.S., which in most areas plans a similar incremental approach.

South Korea's KTX high-speed rail, which is based on France's TGV technology, shares the same advantage, said Kim Seok-gi, director of the international railroad division at South Korea's Ministry of Land, Transport and Maritime Affairs.

South Korea is "absolutely interested" in California's projects and meanwhile is preparing a bid for a high-speed rail project in Brazil linking Rio de Janiero, Sao Paulo and Campinas, he said.

For Japan, which pioneered high-speed rail in 1964, billions in contracts would be a welcome boost to the faltering economy. But its bullet trains, despite their impeccable record for safety and efficiency, run on dedicated tracks.

California and other states will eventually have to adapt whatever systems they choose to local conditions, and step up training of engineers and other personnel needed to build and run those trains by "orders of magnitude," said Barkan from the European rail industry group.

"We're not going to be able to pick up train technology from elsewhere, drop it down in the United States and expect it to work perfectly," he said. "The question is where is the intellectual talent to build all these systems?"

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AP Business Writer Kelly Olsen in Seoul and researcher Ji Chen in Shanghai contributed to this report.

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