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French smear scandal claims second EADS scalp

PARIS, May 16 (Reuters) A second official at European aerospace and defence company EADS implicated in a smear scandal engulfing the French government has stepped down from his duties at the company.

EADS today said Imad Lahoud, the company's research director, had asked to be discharged temporarily to prepare his defence in what has been dubbed the ''Clearstream affair''.

''Imad Lahoud is currently on sick leave. Like Jean-Louis Gergorin, he asked in writing to be discharged from his operational duties to prepare his defence,'' an EADS spokesman said.

Gergorin, EADS vice president in charge of strategy, stepped down last week.

In a television interview yesterday, Lahoud denied being behind a smear campaign that has prompted a parliamentary vote of confidence today in Prime Minister Dominique de Villepin's government.

The scandal turns on a list of accounts held in a Luxembourg finance house, Clearstream, by senior public figures including Interior Minister Nicolas Sarkozy.

The list turned out to be partially faked, and Villepin has been accused of using French spies to try to smear Sarkozy in order to damage his rival's chances in next year's presidential election.

Villepin has vehemently denied targeting Sarkozy -- cleared by separate investigations of holding a foreign account -- or any wrong-doing.

REUTERS DKS ND1548

Pope names new archbishop of Washington DC

VATICAN CITY, May 16 (Reuters) Pope Benedict today named Donald W Wuerl, bishop of Pittsburgh, to be the new archbishop of Washington DC the Vatican said. Wuerl succeeds Cardinal Theodore E McCarrick, who is resigning for reasons of age, the Vatican said. REUTERS DKS RN1607.....

Afghan parliament functions but faces risk group

KABUL, May 16 (Reuters) Afghanistan's new parliament is beginning to function properly but it risks being dominated by old power-brokers unless political blocs emerge, an international think-tank said today. The parliament was elected in landmark polls last September with candidates running as individuals, not as members of parties. But parties are vital for the development of a robust democracy, the International Crisis Group said. ''In its opening months, the bicameral legislature has functioned slowly but.....

Milan models to strike over foreign competition

MILAN, May 16 (Reuters) Models, fashion photographers, and make-up artists in Milan plan to go on strike tomorrow to demand tighter regulation of foreign competitors, saying a lack of controls is allowing them to poach Italian clients. The Milan fashion pack complained today that foreign agencies did not pay Italian tax and were able to lure away clients by offering cheaper services. ''There is a total absence of rules for agencies that come here. They don't.....
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