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Merci de choisir un ou plusieurs textes plutôt que d'imprimer la totalité... Les arbres vous sont reconnaissants...

C'est une reprise de la semaine dernière avec quelques rajouts...

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Week 5, 2005
THE BEST SELLERS (recent popular articles -- aller savoir pourquoi, mais ceux-ci plaisent encore !):

B*) CNN/Global Office: Overtime costs UK works $43bn [Les heures supp non payées coûtent cher aux salariés britanniques.]
2*) The Economist: The software-development industry [Il est de plus en plus de difficile de concevoir des logiciels.]

2**) International Herald Tribune: Writing clear English [Les entreprises américaines renvoient leurs salariés à l'école pour apprendre à écrire convenablement un anglais déformé par l'e-mail et les SMS.]
4*) BBC News: US military pondered love not war [Un laboratoire militaire US avait réfléchi sur des armes chimiques non-fatales plutôt innovantes, dont une au pouvoir aphrodisiaque qui inciterait les soldats ennemis à engager dans des actes sexuels entre eux.]

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THE REGULARS: Summary

A) Le texte plus abordable de la semaine/Scholastic News: Happy Birthday, Rovers [Les véhicules-sondes sur Mars fêtent leur premier anniversaire.
B) CNN/Global Office: Ancient and modern management [Alexandre le Grand, un modèle pour les PDG d'aujourd'hui ?
C) Car Talk/The Puzzler: A Rope and Two Telephone Poles [Un casse-tête. On ne triche pas !]
D) The Miami Herald/Dave Barry's Year in Review [HUMOUR ! Le regard de Dave Barry sur l'année 2004. Ici, le mois de MARS.]

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READ AND LISTEN TO A SHORT STORY
Ecouter et lire une nouvelle inspirée par le personnage de Sherlock Holmes. Cette semaine je propose "The Lady Downstairs", Sherlock Holmes vu à travers les yeux de sa logeuse.
http://www.bbc.co.uk/cult/sherlock/ladydownstairs1.shtml
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THIS WEEK'S TEXTS: Summary
1) Columbia Tribune: President's gesture was insult to some [Dans un exemple des difficultés de communication interculturelle, un geste fait par la famille Bush lors de la parade d'investiture est perçu comme injurieux ailleurs dans le monde.]
2) Newsday: Too many trailers? [Un législateur sans doute désoeuvré souhaite obliger les cinémas à publier les horaires des films et non seulement des séances. (Il faut savoir que la publicité avant le film est plutôt récente aux E-U.)]
3) The Economist: Machines with minds of their own [Le développement de matériel évolutif, des puces puces capables de s'adapter et évoluer, permettent de régler des problèmes qui dépassent les capacités humaines, notamment en conception de puces analogiques.
4) The Economist: Refinancing corporate Germany [Les PME allemandes sont à la recherche de nouvelles formules de financement.
5) The Wall Street Journal: At Fast-Food Chains, Era of the Giant Burger (Plus Bacon) Is Here [Comme si les Américains n'étaient pas assez gros, une chaîne de restauration rapide propose un gigaburder avec 300g de viande, et ce n'est que le début. Le pire, c'est que ça marche du tonnerre.
6) Boston Herald: Boozing bozo gets university 'Fun Czar' gig [L'université Harvard engage un animateur pour assurer que ses étudiants s'amusent.]
7) Slate/Dear Prudence: The Return! [Certains regrettent la disparition de Prudence, notre aimable conseillère sur la vie sentimentale. Deux lettres cette semaine, l'une d'un homme qui vient d'apprendre que sa femme entretenait pendant les 30 ans de leur marriage une relation avec son petit ami de lycée, et l'autre d'une jeune femme qui se demande si elle doit poursuivre ses études ou suivre l'ultimatum de son copain qui veut qu'elle déménage dans sa ville.

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B*) CNN/Global Office: Overtime costs UK works $43bn [Les heures supp non payées coûtent cher aux salariés britanniques.]
http://edition.cnn.com/2005/BUSINESS/01/06/overtime.uk/index.html
Overtime costs UK workers $43bn

Friday, January 7, 2005 Posted: 1147 GMT (1947 HKT)

LONDON, England -- Many workers in the UK may have been lucky enough to bank a Christmas bonus last month, but new figures suggest most of them may still be out of pocket. According to figures released this week, British employees did unpaid overtime worth as much as $43 billion last year.

The Trade Union Congress (TUC), which conducted the research, said that each employee who performed an average number of extra hours should have received an extra $8,700 if paid at their normal hourly rate. Or, to put it another way, if they had done all their unpaid overtime at the start of the year, they would have worked for free until February 25.

The TUC said that London workers suffered the worst deal with more than 700,000 people putting in average of 7.9 unpaid hours a week -- almost a complete extra day at the office every week. Had they been paid for the extra time, the average London worker would have picked up more than $13,000 on top of their regular annual wage.

The average number of unpaid hours for the UK as a whole was 7.3 hours.

Long hours can contribute to stress, poor health and relationship problems, and few managers would argue that tired, burnt-out staff are good for business. But TUC General Secretary Brendan Barber warned that the UK, which already has the some of the longest work hours in Europe, had become an overtime culture, in which companies were increasingly reliant on workers exceeding their contracted hours.

"We're not saying that we should turn into a nation of clock-watchers. Most people do not mind putting in some extra time when there's a crisis or an unexpected rush. But too many workplaces have come to depend on very long hours. They get taken for granted and staff have to do even more if there is an unexpected rush," said Barber.

"Worst of all is that many long hours workplaces are inefficient and unproductive. People are putting in long hours to make up for poor organization and planning in the workplace. It also puts employer complaints of the costs of benefits such as pensions or time off for new parents into perspective. Employers have been cutting back on pensions even as their staff put in longer hours."

To draw attention to the issue, the TUC has declared February 25 "Work Your Proper Hours Day," when it is urging staff to stick to their contracted hours to remind their bosses how much they depend on their extra efforts. "Take a proper lunch break, not just a sandwich at your desk, and leave on time, to enjoy your own time on Friday evening," it says. "Why not get together with friends working nearby, and go for a coffee, a pint, or take in a show? You deserve it! This is one day in the year for your boss to appreciate your efforts, and for you to appreciate yourself."

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2*) The Economist: The software-development industry [Il est de plus en plus de difficile de concevoir des logiciels.]

http://www.economist.com/displaystory.cfm?story_id=3423238
The software-development industry: Managing complexity
Nov 25th 2004

Most software projects fail to meet their goals. Can this be fixed by giving developers better tools?

ON SEPTEMBER 14th, the radios in an air-traffic control centre in Palmdale, California shut down, grounding hundreds of flights in southern California and Nevada, and leading to five mid-air encounters between aircraft unable to talk to the ground controllers. Disaster was averted because aircraft managed to communicate with more distant back-up facilities. But why did Palmdale's radios fail? A glitch in the software running the system meant the computers had to be re-booted every 30 days, and somebody forgot to do so. But software running a mission-critical system should not have to be restarted every month. The culprit: poor design.

At least Palmdale's software worked some of the time. The same cannot be said of an $4 billion write-off that America's Internal Revenue Service (IRS) had to swallow when a multi-year effort to overhaul its computer system failed completely in 1997. And such problems are confined neither to governments nor to America. A £456m ($844m) project for Britain's Child Support Agency came in over a year late, and has failed to deliver payments to more than half of eligible applicants.

As software has become more and more pervasive in business and government, and more complicated, the impact of poor software design has been steadily growing. A study earlier this year by the Standish Group, a technology consultancy, estimated that 30% of all software projects are cancelled, nearly half come in over budget, 60% are considered failures by the organisations that initiated them, and nine out of ten come in late. A 2002 study by America's National Institute of Standards (NIST), a government research body, found that software errors cost the American economy $59.5 billion annually. Worldwide, it would be safe to multiply this figure by a factor of two. So who is to blame for such systematic incompetence?

Cost overruns and delays are common in numerous industries—few large infrastructure projects, for instance, are completed either on time or on budget. But it is peculiar to software that billions of dollars can be spent only for nothing useful to result. At a very basic level, it is the fault of the software engineers who are writing the programs, and of their bosses. Even companies that specialise in software development suffer from delays and overruns. An obvious example is Microsoft: its “Longhorn”, the long-heralded successor to its Windows XP operating system, was originally scheduled for launch this year. Longhorn is now not expected before mid-2006, and many of its key features have been put off until 2007.

The prevalence of such failures can be explained by one startling weakness: the tools available to software developers. As software projects have become more and more complicated, it has become impossible for even the most talented team of programmers to keep track of the millions of lines of “code” required. As long ago as the 1980s the industry began to rely heavily on software-development applications—basically, software that helps write software, for example by creating reusable modules that form part of broader processes. The problem is that these have simply not been up to the task. As a report in May by Forrester Research, another consultancy, succinctly put it: “Corporate software development is broken.”

Dale Fuller, the boss of Borland, a software-development company, agrees. He also thinks he can fix the problem of weak tools. So does John Swainson, long in charge of software development at IBM and now bound for the top job at Computer Associates. John Montgomery, who runs such things for Microsoft, does not think the situation is quite so bad. However, he believes Microsoft has what it takes to “commoditise common problems” and so enable average software developers to write above-average programs. And a bevy of smaller companies offers solutions as well. The challenge facing all of these companies is how to create tools that are reliable, yet capable of dealing with millions of lines of code and requirements that can shift, sometimes alarmingly, during a project's lifetime.

The importance of the software-development sector to business as a whole is huge. It is also an increasingly substantial business in itself (see chart). And, as Mr Montgomery points out, although selling software-development applications is profitable for Microsoft, it is also a way of winning new business. Better development tools mean more software is written for Windows, which in turn means more people are likely to use the operating system. Ditto for rivals—one reason IBM is making a big push to support development in various flavours of Unix (including in the “open source” version—ie, software code that is non-proprietary and ostensibly free to anyone—Linux). Unix is a long-established operating system that remains the biggest threat to Windows.

Three main trends are shaping the future of software development and giving hope to those who oversee big software projects. The first is awareness of the need to pay greater attention to the lifecycle of a piece of software, from the initial setting of requirements to ongoing implementation. The second trend is towards automating the testing of software. The NIST study estimates that $22.2 billion (more than one-third) of the cost of software failures could be eliminated simply by improved testing. The third trend is the emergence of open-source code, something embraced even by Microsoft, which is often seen by its many critics as the would-be nemesis of the open-source movement.

The five-step program

There are five steps involved in creating a piece of software: enumerating the requirements; designing the program; actually writing the code; testing it; and then deploying it. Traditionally and naturally enough, this was seen as a sequential process. However, Mr Swainson points out that by the time an organisation gets around to deploying a piece of software, its requirements have often already changed. This, he says, means that an “iterative” model, in which an organisation continually cycles through the five phases, makes more sense than the traditional “waterfall” which puts them in sequence.

Although the consensus among software-development providers is that iterative models are the way forward, a note of caution is in order. A paper by Phillip Laplante and Colin Neill of Penn State University in the February issue of ACM Queue, a scholarly journal, claims that, in practice, the waterfall remains by far the most popular model. It may be that real change is lagging behind developers' marketing literature, or that the iterative approach is more style than substance.

Borland, though, is betting its business on the success of the iterative model. In September it announced “Software Delivery Optimisation”, an approach that seeks to bring together all five bits of the development cycle, along with the people who are constantly making decisions about the project. At the heart of the system is management software called Themis (the Greek goddess of order), planned for release in the first half of 2005. Themis will have a module that turns models automatically into programming code. When code is written, it will instantly update the requirements input by the business developers. Mr Fuller says that this will transcend even the iterative model because the iteration will be so fast as to be seamless. As soon as a portion of the code is completed, it will be tested. As soon as requirements change, programmers will instantly change course.

If that sounds a bit utopian, it is by no means unique. In October, IBM announced its newest package, called “Atlantic”, which is poised to compete with Themis. Atlantic is based both around IBM's own products and those of Rational, a company bought by IBM in December 2002 for $2.1 billion. Not to be left out, Microsoft will release a similar product called Visual Studio 2005 sometime in the first half of next year. The rhetoric of this rush of entrants into the marketplace is almost indistinguishable.

This is partially due to the fact that, although they are competitors, and fierce ones at that, they are also collaborators. Mr Montgomery points out several bits of development software—WS-Routing, for instance (which handles network routing) and WS-Security (you guessed it, security)—that were developed jointly by IBM and Microsoft. Both firms trumpet that their development software is used by an impressive percentage of the world's largest companies, and both support the same basic standards, such as XML (a language for exchanging data on the web) and other web protocols.

Indeed, so-called web services—programs that are meant to run on the web and be accessed by many computers remotely—are the primary battleground for the next generation of software-development applications. The business case rests on the view that almost anything can be done over the web. This is particularly true for the most common, commodity-type applications where most of the available revenues appear to be.

Tick this box

One snag is that, so far, web services have turned out to be much harder to deliver than their champions had hoped. Consider the example of a relatively simple challenge: enrolling 6m Americans living abroad who wanted to use the internet to cast their votes in the recent elections. America's Defence Department, which has responsibility for helping expats to vote, decided to launch a pilot program for 100,000 people, and even came up with an acronym: SERVE, or Secure Electronic Registration and Voting Experiment. In February, after $22m had already been spent, the project was abandoned. The software was judged to be too unreliable.

The various efforts to prevent the occurrence of such disasters—IBM's web-services platform is called WebSphere, and Microsoft's suite of development tools for web services is known as .NET—have more similarities than differences. IBM tends to favour Java as its native programming language, while Microsoft prefers C#, a language it developed itself. However, both firms' platforms support other languages. Borland claims that, being neutral, it does a better job, but marketing seems to be as important as technology when it comes to winning market share.

That is why Mr Montgomery emphasises Microsoft's efforts to create an “ecosystem” of developers. He says that the company has spent, over the years, hundreds of millions, if not billions, of dollars investing in the Microsoft Developer Network. This is certainly a busy website—some 3m developers a month visit to exchange programs and ideas, Mr Montgomery says. Indeed, some of the developers come up with products that compete directly with elements of .NET.

What's more, Mr Montgomery says that the tools made by companies such as Component 1 and Infragistics are better than Microsoft's own, and that this is something Microsoft encourages. The small fry make millions of dollars by staying one step ahead of Microsoft, but the giant benefits because its overall ecosystem is strengthened.

If software development in general is somewhat fragmented, in the area of software testing there is one clear market leader: Mercury Interactive, a company based in Mountain View, California. Other companies, especially IBM, are trying to make inroads into testing, and Mercury itself is trying to expand into other areas, particularly through an initiative called “Business Technology Optimisation” (yes, the initiatives all start to sound rather similar). That aims to do the kind of system-level integration at which companies such as Borland have traditionally been best. However, industry watchers say there is real promise in efforts to refine the testing process.

There are two sorts of software testing. The first, unit testing, tests a very small subroutine to see that it does what it should. The second, functional testing, is actually trying to use the software. Unit testing is far more straightforward—it is easier to test if a brick will crumble than if an entire structure is sound. Functional testing, on the other hand, is tricky—how is one to know if the software is fully tested? However, according to Mercury, about 60% of the necessary functional testing can be automated—things like repeatedly entering data. And automation allows the developers to explore a far larger number of test cases than would be possible by hand, in far less time. The gains are even greater when software is revised—old automated tests can often be re-used, whereas manual testers would have to start from scratch.

The benefits of this approach are amplified by the transition to the iterative approach—testing is much more effective if its results can be easily re-integrated into the software. Indeed, there is a symbiosis here: the faster testing made possible by automation is easing the transition from the waterfall model to an iterative one. Hence the interest from IBM and Microsoft.

An open-source solution?

The third big industry trend is arguably the most promising of them all. As Mr Montgomery points out, there are two ways of thinking about open-source software development. The first is to see it as a business model, and the second is to understand it as a development process. Microsoft, he says, makes a large amount of source code available under a so-called shared-source licence, which grants users downstream a limited set of rights to modify and use the code.

For purists, this is not enough. However, Mr Montgomery says it suffices to build the sort of community Microsoft wants, while retaining its ability to make a profit. (For instance, people are allowed to take the code, modify it and sell it, but only if it will be used on a Microsoft operating system.) IBM uses a similarly restrictive licence, but it has built its platform on top of Eclipse, a purer open-source framework for building integrated development environments.

However, other companies, such as CollabNet, a firm based in Brisbane, California, are using a less restrictive licence, along the lines of what is traditionally thought of as open source, with only one exception—the licence allows for commercial use. Brian Behlendorf, founder and chief technology officer of CollabNet, says that the open-source ethos allows programmers, particularly those collaborating from different locations, to work together more efficiently. He contends that the freedom to tinker with and improve tools essentially without restriction is the best route to efficiency. Mr Behlendorf was a pioneer in the development of the well-known Apache open-source web server, so his views come as little surprise. Less predictably, they are shared by businesses not usually thought of as being open-source enthusiasts.

For instance, CollabNet signed a deal earlier this month with Barclays Global Investors (BGI), a large asset manager, to provide it with development tools for the next three years. Mr Behlendorf points out that software-development companies, like software companies themselves, are moving towards a model of selling services rather than products. The tools that CollabNet uses are almost all open-source, but by paying “rent”, clients get the benefits of the company's expertise. It seems to work. BGI reports that since it first started using CollabNet two years ago, the time it takes to complete a project has halved.

The three big industry trends—lifecycle management, testing and open source—come together in a movement known as “agile” programming. This approach to software development was codified in a meeting in February 2001 in Utah when a group of programmers declared its allegiance to doing things quickly, using common sense and simplicity. The canonical example of what they are trying to avoid was a 1980s program called CONFIRM. Funded by a consortium of hotels, airlines and rental-car companies, it was meant to be a comprehensive travel-reservation system. After three and a half years and $125m, it was cancelled.

The main principle of agile programming is that developers must talk to each other often, and that they must talk to the business people setting requirements equally often. Combine this with a short time-scale—ideally agile proponents seek to deliver a working bit of software every few weeks—and you have an accelerated, informal version of the iterative model. This means that no project can go on for years and produce nothing—a fatally flawed project will be caught sooner.

Gartner, a consultancy, estimates that agile programming will have a substantial impact on high-priority projects. Nonetheless, pessimists argue that the problems plaguing software development are so fundamental that none of the many innovations being pursued today will really make a difference. In mitigation, software engineering is still an immature discipline. It is just possible that the techniques now being pursued by Microsoft, IBM and their growing army of competitors will lead to a future where failure is an exception rather than the rule.

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2**) International Herald Tribune: Writing clear English [Les entreprises américaines renvoient leurs salariés à l'école pour apprendre à écrire convenablement un anglais déformé par l'e-mail et les SMS.]

http://www.iht.com/articles/2004/12/08/business/email.html

Challenge for office: Writing clear English
By Sam Dillon The New York Times
Thursday, December 9, 2004

Deficit found as e-mail replaces phone

BLOOMINGTON, Illinois Craig Hogan, a former university professor who heads an online school for business writing here, received an e-mail message recently from a prospective student. "i need help," said the message, which was devoid of punctuation. "i am writing a essay on writing i work for this company and my boss want me to help improve the workers writing skills can yall help me with some information thank you"

Hogan receives hundreds of e-mails monthly from managers and executives seeking to improve their writing or their workers' writing each month. He says the number has surged as e-mail has replaced the phone for much workplace communication. Millions of employees must write more frequently on the job than previously. And many are making a hash of it. "E-mail is a party to which English teachers have not been invited," Hogan said. "It has companies tearing their hair out."

A recent survey of 120 American corporations reached a similar conclusion. The study, by the National Commission on Writing, a panel established by the College Board, concluded that a third of employees in major U.S. companies wrote poorly and that businesses were spending as much as $3.1 billion annually on remedial training. The College Board is a U.S. organization that helps students going to college.

The problem with writing shows up not only in e-mail but also in reports and other texts, the commission said. "The more electronic and global we get, the less important the spoken word has become, and in e-mail clarity is critical," said Sean Phillips, recruitment director at Applera, a California company that makes equipment for life science research, where most employees have advanced degrees. "Considering how highly educated our people are, many can't write clearly in their day-to-day work."

"It's not that companies want to hire Tolstoy," said Susan Traiman, a director at the Business Roundtable, an association of leading chief executives whose corporations were surveyed in the study. "But they need people who can write clearly, and many employees and applicants fall short of that standard."

Millions of inscrutable e-mail messages are clogging corporate computers by setting off requests for clarification, and many of the requests, in turn, are also chaotically written, resulting in whole cycles of confusion.

For example, an e-mail from a systems analyst to her supervisor at a high-tech corporation in Palo Alto, California, said, "I updated the Status report for the four discrepancies Lennie forward us via e-mail (they in Barry file).. to make sure my logic was correct It seems we provide Murray with incorrect information ... However after verifying controls on JBL - JBL has the indicator as B ???? - I wanted to make sure with the recent changes - I processed today - before Murray make the changes again on the mainframe to 'C'." That message persuaded the analyst's employers that she needed remedial training.

Some $2.9 billion of the $3.1 billion the National Commission on Writing estimates that corporations spend each year on remedial training goes to help current employees, with the rest spent on new hires. An entire education industry has developed to offer remedial writing instruction to adults, with hundreds of public and private universities, for-profit schools and freelance teachers offering evening classes as well as workshops, video and online courses in business and technical writing.

Kathy Keenan, a former legal proofreader who teaches business writing at the University of California Extension in Santa Cruz said she sought to dissuade students from sending business messages in the crude shorthand they learned to tap out on their pagers as teenagers. "hI KATHY i am sending u the assignmnet again," one student wrote to her recently. "i had sent you the assignment earlier but i didnt get a respond. If u get this assgnment could u please respon. thanking u for ur cooperation."

Most of her students are midcareer professionals in high-tech industries, Keenan said.

Even chief executives need writing help, Roger Peterson, a freelance writer in Rocklin, California, who frequently coaches executives, said. "Many of these guys write in inflated language that desperately needs a laxative," Peterson said, and not a few are defensive. "They're in denial, and who's going to argue with the boss?"

But some realize their shortcomings and pay Peterson to help them improve. Don Morrison, a former auditor at Deloitte & Touche who has built a successful consulting business, is among them. "I was too wordy," Morrison said. "I liked long, convoluted passages rather than simple four-word sentences. And I had a predilection for underlining words and throwing in multiple exclamation points. "Finally Roger threatened to rip the exclamation key off my keyboard."

Exclamation points were an issue when Linda Landis Andrews, who teaches at the University of Illinois at Chicago, led a workshop in May for midcareer executives at an automotive corporation in the Midwest. Their exasperated supervisor had insisted that the men improve their writing.

"I get a memo from them and cannot figure out what they're trying to say," the supervisor wrote Andrews. When at her request the executives produced letters they had written to a supplier who had failed to deliver parts on time, she was horrified to see that tone-deaf writing had turned a minor business snarl into a corporate confrontation moving toward litigation. "They had allowed a hostile tone to creep into the letters," she said. "They didn't seem to understand that those letters were just toxic."

"People think that throwing multiple exclamation points into a business letter will make their point forcefully," Andrews said. "I tell them they're allowed two exclamation points in their whole life."

Hogan, who founded his online Business Writing Center a decade ago after years of teaching composition at Illinois State University, says that the use of multiple exclamation points and other nonstandard punctuation like the ":-)" symbol are fine for personal e-mail but that companies have erred by allowing experimental writing devices to flood into business writing. "E-mail has just erupted like a weed, and instead of considering what to say when they write, people now just let thoughts drool out onto the screen," Hogan said. "It has companies at their wits' end."

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4*) BBC News: US military pondered love not war [Un laboratoire militaire US avait réfléchi sur des armes chimiques non-fatales plutôt innovantes, dont une au pouvoir aphrodisiaque qui inciterait les soldats ennemis à engager dans des actes sexuels entre eux.]
http://news.bbc.co.uk/2/hi/americas/4174519.stm
US military pondered love not war


The US military investigated building a "gay bomb", which would make enemy soldiers "sexually irresistible" to each other, government papers say. Other weapons that never saw the light of day include one to make soldiers obvious by their bad breath. The US defence department considered various non-lethal chemicals meant to disrupt enemy discipline and morale.

The 1994 plans were for a six-year project costing $7.5m, but they were never pursued. The US Air Force Wright Laboratory in Dayton, Ohio, sought Pentagon funding for research into what it called "harassing, annoying and 'bad guy'-identifying chemicals".

The plans were obtained under the US Freedom of Information by the Sunshine Project, a group which monitors research into chemical and biological weapons.

'Who? Me?'

The plan for a so-called "love bomb" envisaged an aphrodisiac chemical that would provoke widespread homosexual behaviour among troops, causing what the military called a "distasteful but completely non-lethal" blow to morale.

Scientists also reportedly considered a "sting me/attack me" chemical weapon to attract swarms of enraged wasps or angry rats towards enemy troops.

A substance to make the skin unbearably sensitive to sunlight was also pondered.

Another idea was to develop a chemical causing "severe and lasting halitosis", so that enemy forces would be obvious even when they tried to blend in with civilians.

In a variation on that idea, researchers pondered a "Who? Me?" bomb, which would simulate flatulence in enemy ranks. Indeed, a "Who? Me?" device had been under consideration since 1945, the government papers say.

However, researchers concluded that the premise for such a device was fatally flawed because "people in many areas of the world do not find faecal odour offensive, since they smell it on a regular basis".

Captain Dan McSweeney of the Joint Non-Lethal Weapons Directorate at the Pentagon said the defence department receives "literally hundreds" of project ideas, but that "none of the systems described in that [1994] proposal have been developed".

He told the BBC: "It's important to point out that only those proposals which are deemed appropriate, based on stringent human effects, legal, and international treaty reviews are considered for development or acquisition."

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THE REGULARS

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A) Le texte plus abordable de la semaine/Scholastic News: Happy Birthday, Rovers [Les véhicules-sondes sur Mars fêtent leur premier anniversaire.]
http://teacher.scholastic.com/scholasticnews/news/article_thu.asp

Happy Birthday, Rovers
Steven Ehrenberg

A pair of wheeled robots just celebrated their one-year anniversary on Mars. A year ago Tuesday, Opportunity joined its twin rover Spirit to roam the surface of the red planet.

"This whole mission has surpassed all of our expectations," said Steven Squyres, the lead investigator for the mission. The entire rover team, including Squyres, threw a party for the six-wheeled robots on Monday night.

Meeting the Neighbor

For such a successful mission, it had a rocky start. The pair of wheeled robots were originally scheduled for only a 90-day mission. They were knocked around space by solar flares and a Martian dust storm before they even landed, and Opportunity was plagued with software problems.

But the solar-powered rovers landed safely, and their visit has brought a treasure trove of new information about Earth's neighbor. Soon after its arrival, Opportunity found proof that the crater where it landed had once been underwater.

Most recently, Opportunity stumbled across a meteorite, or a hunk of rock or metal from space. The bubbly, basketball-sized object was the first meteorite found on another planet. Scientists plan to study it to learn about the Martian breeze. Do strong winds sweep sand over other meteorites? Or do gales peel away the planet's surface, revealing more giant rocks? The meteorite, which was uncovered, may offer clues.

Looking Ahead

The rovers will soon be joined by a new spacecraft. The Mars Reconnaissance Orbiter is scheduled to launch on August 10, carrying new cameras and measurement tools. While the rovers have explored small patches of the surface in detail, the Orbiter will map much more of the planet.

In the meantime, the rovers will continue to explore Mars.

"So here we are, a year later, and both rovers are still going strong," said Rob Manning, the head of the rovers' Entry, Descent, and Landing team. "They could die tomorrow, a month from now, a year from now . . . whatever happens, it has been a fantastic journey for these two rovers."

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B) CNN/Global Office: Ancient and modern management [Alexandre le Grand, un modèle pour les PDG d'aujourd'hui ?]
http://edition.cnn.com/2005/BUSINESS/01/18/alexander.guru/index.html
Ancient and modern management

Tuesday, January 18, 2005 Posted: 1620 GMT (0020 HKT)

(CNN) -- The short, spectacular life of Alexander the Great has always been Hollywood material. By the time of his death aged just 32 in 323BC the Macedonia-born Alexander had conquered the ancient world, extending his empire across one million square miles from Greece to India.

In his latest screen incarnation, Alexander, played by Colin Farrell in the eponymous Oliver Stone-directed epic, is portrayed as the greatest warrior in history.

But many business experts believe the lessons of Alexander's career have as much relevance for boardroom as battlefield strategists. According to Partha Bose, author of "Alexander the Great's Art of Strategy", modern executives can learn from Alexander's campaigns in three key areas. "It fundamentally boils down to three things: it is where you want to compete, when and how you want to enter or exit that market and how do you want to go about competing when you are in that market," says Bose. "Those are fundamentally the three key strategic issues and again when you take a look at Alexander the Great's history you find that he was pretty much the first ever general to systematically think through those three key issues. "Strategy is only as good as the organization's ability to execute it. Here again, there are lessons from ancient times."

One modern manager who has drawn inspiration from Alexander's campaigns is Federal Express founder and CEO Fred Smith. "Primary was his organizational skills," says Smith. "He organized his army in a way that had never been done. That organization allowed him to play to his strengths, minimize his weaknesses and prevail over opponents who were much larger."

In Oliver Stone's cinematic portrait, Alexander's greatest achievement comes at the Battle of Gaugamela where his 50,000-strong Macedonian army defeats the forces of the Persian king Darius, five times its size. Stone believes Alexander's tactical flexibility and willingness to delegate authority gave him a decisive military advantage. "He had great instincts in battle," Stone told CNN. "He was very fluid, always changing as the battle developed. He was quick to react. Alexander was a great believer in teamwork and he delegated authority beautifully. "The Persians could not move without central approval. It was all governed by Darius in the center. Alexander went for the head. He knew that if he killed Darius he would kill the snake."

Bose agrees that delegation and instinct were central to Alexander's thinking. "We see him trusting a nine-year-old shepherd boy, and getting this shepherd boy to lead the entire army over the Uxion mountains in Persia," he says. "There are many other situations where he would put his trust just like that in whoever it was he encountered. But a sign of great leadership is that great leaders know whom to trust and do put their faith in lots and lots of people."

But for all Alexander's improvisational abilities on the battlefield, his achievements were also a consequence of careful preparation and forward thinking. "We know that there was significant rehearsal and planning," says Stone. "They even had markers, they drew marbles of the enemy, they drew carved statues and they made battle plans like they do at West Point today."

In war, Alexander could be a brutal and cunning opponent. Yet his empire was founded on a respect for local cultures and a belief that peace and internal stability could only exist through prosperity. "All throughout his life you see Alexander going out of his way to embrace other cultures, and the cultures that he did invade saw that he wasn't trying to impose on them his way of doing things," says Bose. "What was happening was that the local culture and the Greek culture would melt together in ways that even the people who were conquered found quite interesting and innovative. The Nestles, the Unilevers or the Procter and Gambles of the world have been able to succeed across the globe because none of them imposed a system on the nations they were going into that came from their origins. They all worked out something that was in line with the local cultures and local tastes, and that is what globalization is all about. So there are really a lot of great leaders and part of their greatness lies in being able to adapt themselves to the local cultures."

Smith, who describes Alexander as "the first truly global thinker," says Federal Express have tried to emulate that approach when moving into new markets. "We have to deal with different cultures, attitudes, different people. Doing that is part of our company's success," he says. "I think Alexander was the first person who did that successfully. He didn't just capture and enslave them. He was enormously successful in putting together a truly global empire."

-- CNN's Robyn Curnow contributed to this report.

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C) Car Talk/The Puzzler: A Rope and Two Telephone Poles [Un casse-tête. On ne triche pas !]
http://www.cartalk.com/content/puzzler/transcripts/200315/index.html

1 foot=1 pied= environ 30 cm

There are two telephone poles. Each one is 100-feet tall. They are parallel, and an unknown distance apart.

We're going to attach a 150-foot rope from the very top of one of the poles, to the top of the other. This rope will, of course, droop down somewhat.

That drooping rope is called a "catenary," from the Latin word for chain.

So, we've got these two 100-foot poles, and a 150-foot rope. The rope is between the two poles, and it's going to droop down, making an arc.

The question is, what must be the distance between the two poles, so that the lowest point of this catanary is 25-feet above the ground?

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D) The Miami Herald/Dave Barry's Year in Review [HUMOUR ! Le regard de Dave Barry sur l'année 2004. Ici, le mois de mars.]
http://www.miami.com/mld/miamiherald/living/
columnists/dave_barry/10496338.htm?1c

Speaking of fighters, in MARCH John Kerry sews up the Democratic nomination with primary victories in California, Florida, Illinois, Canada, France, Germany and Sweden. Kerry's closest rival, John Edwards, drops out of the race, but Dennis Kucinich stays in, saying that he intends to keep his idealistic grass-roots campaign going until either all U.S. troops leave Iraq, or Dennis finds a girlfriend.

In other political news, Russian president Vladimir Putin easily wins re-election, despite exit polls indicating the winner was Howard Dean.

There is finally some positive news from Iraq, where negotiators reach agreement on an interim constitution, which guarantees that, for the first time ever, Iraq will be governed by a duly elected council of nervous men in armored cars going 80 mph.

In domestic news, U.S. gasoline prices reach record levels when, in what economists describe as a freak coincidence, two drivers attempt to refuel their Humvees on the same day.

On the legal front, a federal jury convicts Martha Stewart on four counts of needing to be taken down a peg. In what many legal experts call an unduly harsh punishment, a federal judge sentences Stewart to be the topic of 17 consecutive weeks of Jay Leno jokes.

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THIS
WEEK'S TEXTS

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1) Columbia Tribune: President's gesture was insult to some [Dans un exemple des difficultés de communication interculturelle, un geste fait par la famille Bush lors de la parade d'investiture est perçu comme injurieux ailleurs dans le monde.]

http://www.columbiatribune.com/2005/Jan/20050123News011.asp
Sign is misinterpreted: President’s gesture was insult to some.

Knight Ridder Newspapers
Published Sunday, January 23, 2005

FORT WORTH, Texas - President George W. Bush, who’s had difficulty holding alliances together at times, might have inadvertently ruffled feathers overseas by flashing a "Hook ’em Horns" sign during last week’s inaugural parade. Bush and the rest of the first family raised their right hands in the traditional "Horns" salute - customary among University of Texas Longhorns - as the school’s band marched in front of the presidential reviewing stand Thursday.

But in Norway and some other parts of the world, a nearly identical hand gesture is considered an insult or, worse, a sign of the devil. In Mediterranean countries, it implies a man is a cuckold, the victim of an unfaithful wife. In parts of Africa, it’s used as a curse, and in many European countries, it’s used to ward off "the evil eye." In Russia, it’s a symbol for so-called New Russians, the newly rich, arrogant and poorly educated.

It means "bull--" in sign language. This elicited a surprised giggle from the first lady’s press secretary, Gordon Johndroe of Fort Worth, Texas, himself a University of Texas grad. When told its meaning by the New York Daily News, Johndroe said, "Texans have been known to BS every once in a while."

A headline in the Norwegian Internet newspaper Nettavisen expressed outrage at the first family’s collective gesture last week, saying "Shock greeting from Bush daughter" above a photo of Bush’s daughter Jenna, smiling and waving the sign, The Associated Press reported.

The originator of the "Hook ’em, Horns" sign said he doesn’t see what all the fuss is about. "I think ‘silly’ would be a very kind word for it," said H.K. Pitts, 73, who was a University of Texas student in 1955 when he came up with the hand signal. "It’s much to do about nothing," said Pitts, who went on to teach history at Texas A&M University-Kingsville. "I wouldn’t think many Norwegians up there watch Longhorn football. So I’m not concerned about it that much, to tell you the truth."

Chris Plonsky, women’s athletic director at the University of Texas-Austin, defended the hand gesture: "It is sort of a symbol that is unifying. You know you’re around a Longhorn when you see that symbol," she said.

Some Europeans don’t see it that way. Catherine "Cat" Osterman, a Longhorn athlete, found that out in Greece when she pitched for the U.S. softball team, which won a gold medal last year during the Olympic Games in Athens. Plonsky said Osterman drew some "adverse" reactions from athletes from other countries when she flashed the "Hook ’em" hand signal.

The sign has been around at the University of Texas for more than a half-century. It’s only been a symbol for heavy-metal rockers since the early ’70s. Pitts, who lives in College Station, said he and a fellow student were killing time in his 1951 Ford sedan outside a drive-in restaurant when he made the shape of horns with his right hand. He suggested it could become a Longhorn tradition, just like the "gig ’em" hand sign for A&M. Pitts said he passed the idea on to Harley Clark, head University of Texas cheerleader at the time, and said Clark introduced it at a Longhorn pep rally in preparation for a football game in Austin against Texas Christian University. Now a retired state district judge living in Dripping Springs, Texas, Clark, 69, advised against using the gesture in Italy but called Norway’s reaction to Bush’s "Hook ’em" gesture "preposterous." "I wonder what they think the Aggies’ thumbs-up-in-the-air sign means," he said.

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2) Newsday: Too many trailers? [Un législateur sans doute désoeuvré souhaite obliger les cinémas à publier les horaires des films et non seulement des séances. (Il faut savoir que la publicité avant le film est plutôt récente aux E-U.)]
http://www.newsday.com/news/local/state/ny-bc-ct-xgr--movietimes0114jan14,0,7588606.story?coll=ny-region-apconnecticut
Too many trailers? Lawmaker wants start times published

By NOREEN GILLESPIE
Associated Press Writer

January 14, 2005, 5:25 PM EST

MANCHESTER, Conn. -- Coming soon to a theater near you: movie listings that print the time the previews start. Frustrated with lengthy advertisements and previews that delay movies and chew up viewing time, a state lawmaker wants theaters to be honest about when a movie actually starts.

Rep. Andrew Fleischmann is proposing legislation to force movie listings to print the time the previews start, and when the movies start. "We're being manipulated right now. We're being robbed of our freedom of choice because we're not told when the actual movie will begin," Fleischmann, D-West Hartford said.

Ads for everything from soft drinks to automobiles have been creeping into the previews in American movie theaters for the past few years. It's big business for theaters. A report from the Cinema Advertising Council, an industry group, found that on-screen revenues for its members grew 45 percent from $190.8 million in 2002 to $315 million in 2003.

Messages seeking comment were left for the council, the National Association of Theater Owners, Loews Theaters and Regal Cinemas.

Fleischmann isn't the only one who is upset. A class-action lawsuit filed in Illinois two years ago claimed movie theater chains were showing the previews past the start time of the movie. A Web site set up by attorneys in the case, www.nomovieads.com, asks moviegoers to sign a petition if they are angered.

Some research indicates that most people don't mind theater advertisements, however. A study by market research firm Arbitron found that about two-thirds of moviegoers don't mind the advertisements.

A few is fine, but too many crosses the line, Fleischmann said. "Twenty-five minutes? I'm not interested. My time is valuable. And that's true for most people I know," he said.

As people trickled into Showcase Cinemas in Manchester for matinees Friday, many chuckled at the thought of the bill. "I like the previews. That's the most exciting part of the movie," said Kevin Zenobi, 20, of Glastonbury. For Donna Gilligan of South Windsor, the preview listing would be helpful if she was out to dinner before a film. "You could sit there for 15 minutes beforehand," she said. "You'd know the exact amount of time you have."

Others were just confused movie times deserved legislative attention. "That's an issue?" asked Mike Wakefield of New Britain.

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3) The Economist: Machines with minds of their own [Le développement de matériel évolutif, des puces puces capables de s'adapter et évoluer, permettent de régler des problèmes qui dépassent les capacités humaines, notamment en conception de puces analogiques.]
http://www.economist.com/displaystory.cfm?story_id=539808

Machines with minds of their own
Mar 22nd 2001

Left to evolve on their own, certain machines can learn to be smarter—surpassing even humans in some of the most intellectually demanding of tasks

CAN people build machines capable of evolving into something better—able, perhaps, to invent solutions beyond human imagination? Using brute-force methods of calculation, computers can nowadays play a passable game of chess. In 1997, an IBM supercomputer called Deep Blue defeated Garry Kasparov. The world champion described the experience as being every bit as gruelling as playing a top-notch human challenger. In so doing, Deep Blue satisfied at least one of the criteria for artificial intelligence set in the 1950s by Alan Turing, the mathematical genius behind the Enigma code-breaking effort in wartime Britain.

Yet Deep Blue’s victory left the world’s artificial-intelligence community unimpressed. That was because the machine performed its feat merely by crunching numbers faster than any other computer had managed before. Its enormous processing power enabled it to predict a game’s possible course up to 30 moves ahead, while its clever programming allowed it to work out which of the millions of possible moves would strengthen its position best. On its own, all that Deep Blue could do—and do brilliantly—was the mathematics. What it could not do was devise its own strategies for playing a game of chess.

Self improvement

But what if Deep Blue could have been given the ability to evolve and learn to improve itself using its trial-and-error experiences? A new technology called “evolvable hardware” (EHW) attempts to do just that. Like Deep Blue, EHW seeks solutions through trying billions of different possibilities. The difference is that, unlike Deep Blue, EHW continually crops and refines its search algorithm—the sequence of logical steps it takes to find a solution. It selects the best each time and tries that. And it does all this on its own accord, not according to some programmed set of instructions.

“Evolvable hardware can exploit the physics of materials in ways researchers do not even understand.”

Conventional wisdom has long held that a machine’s abilities are limited by the imagination of its creators. But over the past few years, the pioneers of EHW have succeeded in building devices that can tune themselves autonomously to perform better. In some cases, the mechanical progeny appear to outstrip even their creators’ abilities. In the field of circuit design, for instance, EHW is coming up with creative solutions to problems that have defied human beings for decades.

The first thing EHW needs is for the hardware in question to be reconfigurable. There is no way that a device can evolve if it cannot change its shape or way of doing things. Take a Swiss Army knife. Given the task of, say, opening a bottle, the user identifies the correct tool in the knife, opens it, and thereby transforms the device into an implement that can pry off a bottle cap.

In this case, the actual customisation is crude: no matter what the size and shape of the bottle cap, the shape of the bottle-opener does not alter. For a Swiss Army knife, the “program” (the decision about which implement to use) can be adapted, but the “hardware” (the bottle-opener) cannot. What EHW engineers are trying to do is invent a knife that can customise its shape to any bottle cap—and perform this adaptation on its own recognisance.

The trick with evolvable hardware lies in creating a device that knows how to make the correct structural adaptation at the correct time. To search out the best-suited design, engineers make use of a programming tool called a “genetic algorithm”—a software technique that deploys trial-and-error learning to mimic the process of natural selection that powers evolution in the living world.

The first step that a genetic algorithm takes is to generate a set of random blueprints which are used, one by one, to configure the device. After each reconfiguration, the device is tested to see how well (or otherwise) it carries out the desired task. The highest-scoring designs are retained as guidelines (“parents”) for a new generation of designs. These “offspring” designs are created by swapping portions of the parents’ blueprints with one another, or by making some random changes. This marginally improved population of designs then undergoes further testing, and the cycle then repeats itself until the device achieves an optimal level of performance.

The target could be determined right at the beginning of the device’s operation or it could be adjusted continually. Either way, the device alters its structure to perform the task at hand in the best way possible. In the case of the Swiss Army knife, it would work out what shape to morph into on its own and leave its “processor” (the user’s brain) free to address other matters.

Today, it is possible to contain the entire genetic algorithm—blueprint creation, fitness evaluation and reconfiguration—within a single microchip, and to run thousands of evolutionary trials in a fraction of a second. Although they were invented some 30 years ago, genetic algorithms have hitherto been run generally in software, where they placed a large and often prohibitive burden on the processor’s time. EHW avoids this problem by running its genetic algorithms in hardware.

That is the crucial difference. In any digital device, wiring instructions into the actual hardware, rather than running them as part of the software, invariably boosts the speed of operation. In EHW, the speed advantage is so significant that the genetic algorithm for problems that could not have been solved in software can be cracked in real time—ie, with the solutions being produced as fast as the problems are fed in. This speed and flexibility makes EHW ideal for handling situations that vary rapidly.

Designers, resign

The most notable application of EHW so far is in the design of analogue circuits. While digital devices have become ubiquitous, they still have to communicate with the real world—and the real world remains stubbornly analogue. The fact is that people do not talk, hear, see, touch and taste in the ones and zeros of digital computerspeak. Analogue circuits are needed to measure or produce the wave-like signals of light, sound or temperature. Other analogue circuits known as A-D and D-A converters are needed to translate these continuous wave-like signals to and from the discrete language used by digital devices. Analogue circuitry is thus an essential part of the sensors, receivers and display units that play such a vital role in the modern wireless world.

It is no surprise that, with so much emphasis on digital circuitry these days, the design of analogue devices is becoming a serious problem. First, coming up with an efficient analogue circuit has as much to do with instinct as with physics. John Koza of Stanford University in California claims that analogue-circuit design is the domain of engineers “off in a room wearing purple hats with gold stars.” Second, engineers with the necessary skills are in short supply. Texas Instruments, for instance, needs to recruit 500 analogue engineers a year—more than the number that graduate from all the universities in America.

A third problem is that even when a good circuit architecture is conceived, a large proportion of the devices fabricated turn out to be defective. In order to make a complicated job manageable, designers of analogue devices tend to assume that the components used in their circuits work in a uniform and predictable manner.

In the real world, however, environmental factors such as temperature and humidity can cause the electrical properties of a micro-circuit’s resistors and capacitors to vary by as much as 20%. Such discrepancies matter far less in digital circuits, which simply have to detect whether an electrical current is more or less on or off. But such variations in analogue circuits can render them unusable. For instance, a cellular telephone will not work properly if its analogue filter allows the transmission frequency to vary by more than 1%. Until now, designers of analogue chips have tried to circumvent the problem by using larger components whose physical properties are more easily measured and controlled. Unfortunately, that leads to bulkier circuits that gobble power.

Tetsuya Higuchi and his colleagues at the Electro-Technical Laboratory in Japan have solved the stability problem by using EHW to accommodate the natural variations that occur between the components. His team use genetic algorithms to tweak the irregular analogue circuit components until they conform to the design specification. By testing the performance of each chip, the algorithm evolves an architecture that can adjust automatically for all the variations in its resistors and capacitors. The group has found that 95% of analogue chips can eventually be coaxed into acceptable performance. That is a higher yield than most digital chip plants achieve. Dr Higuchi expects the first cellular telephones exploiting evolutionary hardware to be on the market by next September. Output of such EHW chips will then be running at hundreds of thousands per month.

Machines that invent

But it is the work done by Dr Koza at Stanford that gives a real glimpse of the future. By running genetic algorithms on analogue circuits that have been simulated in a computer, Dr Koza’s machines have already produced seven circuit designs that he calls “human-competitive” because they infringe on patents previously issued to human inventors. Currently, each circuit design costs around $10,000 to simulate, which means that it is still cheaper to do the job manually. But as Dr Koza points out, processing power is becoming less expensive all the time, while human designers are becoming scarcer to find and costlier to keep. Dr Koza is optimistic that, given time, a design for a wholly novel and commercially viable circuit will emerge from his “invention machine”.

While Dr Koza’s simulated circuits are recognisable variations on human inventions, Adrian Thompson of Sussex University in Britain has evolved a circuit that is literally incomprehensible. Four years ago, Dr Thompson performed a seminal “proof of principle” experiment which described the evolution in hardware of a simple analogue circuit that could discriminate between two different audio tones.

The type of chip that Dr Thompson selected to carry out the evolution was a field-programmable gate array (FPGA). Unlike an ordinary chip, an FPGA’s architecture is not “hardwired”. Instead of being fixed, a string of bits specifies the chip’s design by telling it what linkages to forge between its various components (in this case, groups of transistors known as logic cells). By changing this bit string, the FPGA’s circuitry can be altered on the fly. Thus, when a genetic algorithm runs on the chip, the effectiveness of each configuration can be measured directly on the circuit rather than in some costly simulation.

As it turned out, conducting the evolution in hardware produced some results that could not have emerged through mere simulation. After around 4,000 generations of bit strings, a unique circuit emerged. The surprising thing was that, while the new circuit relied directly on only a few of the FPGA’s logic cells, it appeared somehow to take advantage of clusters of other cells nearby. These unconnected neighbouring cells could not be removed without damaging the circuit’s performance. Further investigations revealed that these detached cells exerted some subtle electromagnetic influence on the wired-up part of the circuit, allowing it to perform its task efficiently.

Remarkably, the circuit had adapted itself in a way that allowed it to exploit the underlying physics of the FPGA’s semiconductor material. And it had done this despite the fact that the human experimenters were completely unaware of the physical quirks in the semiconductor that the genetic algorithm was taking advantage of. Four years on, this bizarre circuit has still not been completely deciphered. What has become clear, however, is that EHW’s ability to adapt automatically means that it can exploit the physics of materials in ways that researchers do not even consider, let alone understand.

Beyond the realm of analogue and digital electronics lie all manner of unconventional physical systems—including the microscopic world of nanotechnology and quantum dots—where there are no well-developed design rules. By testing layouts that would never occur to humans, EHW can capitalise on the physical properties of these unconventional materials—even when engineers cannot fully account for their behaviour.

It may seem ironic that the direction being taken with evolvable hardware speaks so eloquently of the ignorance of the human architect. But, then, the use of evolution in design is really an admission that researchers have not as yet found anything better. Over the next few years, evolutionary machines could show humans the way.

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4) The Economist: Refinancing corporate Germany [Les PME allemandes sont à la recherche de nouvelles formules de financement.]
http://www.economist.com/displaystory.cfm?story_id=3405950
Refinancing corporate Germany

New fuel for an old engine
Nov 18th 2004 | FRANKFURT

Foreign investors are vital to German companies' financial revolution. But the locals are stirring too

BIT by bit, it is becoming less easy to caricature corporate Germany as being stuck in the past. Competitive reality is unsettling the old, cosy relationship between bosses and workers (see article). Corporate governance is becoming a little more transparent. Less obviously, the way German companies are financed—for most of them, a mixture of private, often family ownership and loans from the bank—is changing too.

However, it sometimes seems that foreign private-equity firms are the sole agents of this financial change. Only this week, one such firm, Terra Firma, emerged as the buyer of Tank & Rast, an operator of motorway service stations that is already mostly owned by other private-equity funds. Another private-equity outfit, Lone Star, was set to buy Mitteleuropäische Handelsbank, a subsidiary of NordLB, a public-sector bank. The foreigners' prominence reflects the slowness of German banks, companies and capital markets to re-engineer corporate Germany by themselves.

Studies suggest that companies that open themselves to new sources of finance, whether private equity or new types of debt, benefit from it. One study—co-sponsored, admittedly, by a German private-equity firm—found that a sample of 45 companies that had taken on private equity between 1993 and 1999 grew faster and created more jobs between 1999 and 2003 than those that had not. An annual survey of Mittelstand (essentially, small and medium-sized) companies by Kreditanstalt für Wiederaufbau, the state development bank, finds that those that took on new debt or equity saw their workforces increase: those that did not, shed employees. Another study, by McKinsey, attributes the relative success of private-equity investors to what it calls “active ownership” and more effective corporate governance.

Granted, the rigour of all these surveys can be questioned. One problem is that private-equity firms and other investors tend to select the firms they think likely to do best. And most of the Mittelstand—a loose term, covering perhaps 3.4m companies employing 26m people—comprises companies too small to benefit from fancy financial tricks. Still, the promise of growth and jobs may embolden some firms to overcome their traditional suspicion of outside capital.

In fact, below the headlines, corporate finance in Germany is going through enormous upheaval, comparable to that in America after the savings-and-loan crisis of the late 1980s. Nearly every bank is restructuring its loan portfolio and trying to sell its unwanted and non-performing loans. Here again, American funds and investment banks have stepped in, as they have in Japan: Lone Star recently paid an undisclosed sum to Hypo Real Estate, a subsidiary spun out of HVB, Germany's second-biggest bank, for €3.6 billion ($4.7 billion) of non-performing loans. Many packages of discounted property loans have been sold in synthetic or securitised form. The potential benefit, for companies, is that the banks recover some capacity to lend new money.

The range of banks' lending rates has widened dramatically, partly because of new risk-based capital charges, which will apply when Basel 2 regulations come into effect from January 2007, and partly because banks are in any case pricing risks more cannily. Lending margins have been trimmed for the safest borrowers, while companies regarded as high or medium risk are being asked to pay far more.

Debt not dilution

Faced with having to pay more for bank loans, the traditional source of outside finance, what is a capital-hungry company to do? Firms that are reluctant to sell equity are beginning to opt for mezzanine or subordinated debt. Suppliers of such capital charge a higher margin than senior lenders, but the owners' equity is not diluted. Since the loan is subordinate to senior debt it also has less effect on the borrower's credit rating. These days, because of Basel 2, the level at which a company is rated internally by banks has a vital bearing on its everyday access to funds.

Mezzanine finance is likely to grow rapidly in Germany. Several banks are offering it. M Cap Finance, the first independent mezzanine fund in Germany, started in April this year and estimates that continental Europe will see €4 billion-5 billion of such debt in 2005. Many private-equity deals also include a slice of mezzanine finance as working capital.

Triumph-Adler, a Mittelstand company, managed to raise new capital in September by means of mezzanine finance alone, while improving its standing with the banks. The result of a merger in 1956 between two motorcycle makers, the company progressed from making bikes and typewriters to image-processing and information technology. Its ownership has changed several times; its biggest shareholder now, with 25%, is Kyocera Mita, a Japanese maker of photocopiers and printers. With no generous parent to refinance it, Triumph-Adler turned, quite typically, to its house bank, Deutsche Bank, Germany's biggest lender.

The answer was not, as it might have been in the past, more money from Deutsche Bank, but the replacement of loans from 50 different banks with an 11-bank syndicated loan. It also won mezzanine finance from Dresdner Anschutz Mezzinvest, of which Dresdner Bank, another big German bank, owns half.

Such financial re-engineering looks likely to be the shape of things to come for many Mittelstand companies. It may be more costly than traditional bank loans, but it leaves the firm more robust, at least in the eyes of its bankers. This makes it easier, for example, to fund the leasing of products to its customers.

Deals like this will become more common as the banks put their own house in order. That is happening, but slowly. One example is “True Sale International”, dreamed up by 13 banks, which offers banks and companies a platform for securitising their assets. It was announced with fanfare nearly two years ago, but the first deal was done only this week. Even then, the bonds, backed by Volkswagen car loans, had to be listed offshore because of German prospectus law. Companies still cannot securitise assets directly, because it seems they still may be liable for sales tax each time the security is sold. For this reason, Volkswagen's bank subsidiary, not the carmaking parent, issued the bonds.

There are other initiatives to stimulate a secondary loan market. In Munich, Deutsche Kreditbörse, owned by a consortium of banks, has teamed up with Standard & Poor's, a rating agency, to standardise ratings and valuation of bank loans in preparation for resale. The Hamburg stock exchange is considering adding a bank-loan segment to its other traded markets. And DebtX, which runs a secondary loan market in Boston, has teamed up with Günther & Partner, an advisory firm in Munich, to get the ball rolling in Europe.

This is all promising: German financial institutions and their clients are becoming more inventive almost by the day. But there is a lot of catching up to do. Meanwhile, though, the foreign private-equity funds will continue to rule the roost.

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5) The Wall Street Journal: At Fast-Food Chains, Era of the Giant Burger (Plus Bacon) Is Here [Comme si les Américains n'étaient pas assez gros, une chaîne de restauration rapide propose un gigaburder avec 300g de viande, et ce n'est que le début. Le pire, c'est que ça marche du tonnerre.]
MEDIA & MARKETING

At Fast-Food Chains, Era of the Giant Burger (Plus Bacon) Is Here

By STEVEN GRAY
Staff Reporter of THE WALL STREET JOURNAL
January 27, 2005

ST. LOUIS -- The order sounded like heresy to Bruce Frazer, chief architect of hamburgers for the Hardee's fast-food chain. While Hardee's rivals were making menus leaner and greener, Mr. Frazer's boss ordered him to build a "bigger, better burger."

First, Mr. Frazer delivered the Thickburger, topping out at two-thirds of a pound of Angus beef. Good, his boss said, now make an even bigger one. In November, Hardee's unveiled Mr. Frazer's Monster Thickburger: a pair of 5.7-ounce patties, four strips of bacon and three slices of American cheese on a buttered sesame-seed bun slathered with mayonnaise. It weighed in at 1,418 calories -- 600 calories more than Burger KingCorp.'s Whopper with cheese, or the equivalent of more than two of McDonald's Corp.'s Big Macs.

"Food porn," cried the Center for Science in the Public Interest, the Washington advocacy group.

Jay Leno joked that the Monster Thickburger comes in a cardboard box shaped like a coffin. "Would you like a defibrillator with that?" wrote the Chicago Tribune's restaurant critic, while describing the burger as "unfortunately delicious."

It was just what Mr. Frazer's boss, Andrew Puzder, wanted to hear. "If I was going to survive, I needed to do things that people who weren't succeeding were afraid to do," says Mr. Puzder, chief executive of CKE Restaurants Inc., owner of Hardee's. He yearned for a burger like the ones he devoured at St. Louis pubs while attending law school. Now, he says, "we get thank-yous for putting out a burger that people can actually eat."

Big burgers aren't confined to Hardee's. Culver's, a Midwestern chain, has found a hot product in its Jumbo Bacon ButterBurger Deluxe -- beef patties, bacon, cheese, mayonnaise and pickles (1,100 calories); Burger King offers the Double Whopper With Cheese (1,060 calories); and McDonald's features the Double Quarter Pounder with Cheese (730 calories).

This week, a federal appeals court reinstated part of a lawsuit alleging that McDonald's misled young consumers about the healthfulness of its products. A trial judge had previously dismissed the suit; McDonald's said it believes the case will be dismissed again.

John Banzhaf III, a George Washington University law professor who is advising plaintiffs in the McDonald's case, says Hardee's could be asking for a similar lawsuit because it doesn't disclose on restaurant menus that the Monster Thickburger's 107 grams of fat far exceed the maximum daily fat-gram intake recommended by the federal government. Brad Haley, a spokesman for CKE, says, "We've been pretty up-front about what we're doing with regard to the Monster Thickburger ... People would be hard-pressed to assume it was anything other than what it was."

Harry Balzer, a vice president at market-research firm NPD Group, says, "Americans have the means to eat healthier. But when it comes down to the privacy of our eating patterns, we eat what feels good."

Wholesome or not, Thickburgers have certainly been healthy for Hardee's, based here in St. Louis, and CKE, of Carpinteria, Calif. Burger sales at the roughly 2,050 Hardee's outlets have climbed 20% since the 2003 introduction of the first Thickburgers. CKE has posted 19 consecutive months of same-store sales growth, after years of the opposite. The company's stock price, which hit a low of $3.69 in December 2002, was $14.11, up 42 cents, as of 4 p.m. yesterday in composite trading on the New York Stock Exchange.

Fast-food fare is usually prepared quickly and cheaply, with the most-basic ingredients. But as Mr. Frazer cooked up the Thickburger, he heeded Mr. Puzder's mandate to ignore conventional wisdom about ingredients and cost. "He took the shackles off our thinking," says Mr. Frazer, whose is head of product marketing, research and development at CKE.

Mr. Puzder is a tall, lean 54-year-old in a crewcut who paid his way through nearby Washington University law school playing guitar in a rock band. He was personal attorney to CKE founder Carl Karcher when Mr. Karcher brought him into the business. Mr. Puzder was named president and chief executive of Hardee's in June 2000, and a few months later became head of CKE.
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At the time, Hardee's restaurants were grimy, service was poor, and the food was terrible, he says. But CKE had had success selling extra-large Six Dollar Burgers (they actually cost about $3.95) at another CKE unit, Carl's Jr. Mr. Puzder bet that while Americans talk a lot about eating healthier, they were behaving otherwise. In 2002, he gave Mr. Frazer his marching orders: "No more skinny burgers."

Consumers have long told fast-food chains that they want burgers with mayonnaise, but many chains eschew mayo because it is expensive. Mr. Frazer went with it anyway. Working with a development team in the Hardee's test kitchen, he increased the thickness of dill pickles on the sandwich and switched to a tastier, more-expensive American cheese.

The designers considered using a single thick tomato slice, but "it was just too tomatoey," Mr. Frazer says, so they settled on two thinner slices. Four slices of bacon overpowered the original Thickburger, so three were used, although the Monster Thickburger was big enough to handle four. Bigger burgers required a firmer bun, which required more dough -- at still more cost. Mr. Puzder wanted butter on the buns, so Hardee's commissioned the creation of a "butter wheel" that the bun's bottom is rolled over before it's popped onto a grill. Finally, Hardee's made franchisees pay for $7,000 grills with bigger flames that reduce cooking time and give burgers a "char flavor," Mr. Frazer says.

"The costs were pretty heavy [but] we had to do something," says Bill Boddie, chief executive of Boddie-Noell Enterprises Inc., the Rocky Mount, N.C., franchisee of about 320 Hardee's units. His sales had fallen throughout the late 1990s, he says, but are now climbing again.

Hardee's then splurged on advertising that cost $55 million last year. All the spending showed up in the price that Hardee's recommends franchisees charge for a Monster Thickburger: $5.49. By comparison, the most-expensive McDonald's sandwich, the Double Quarter-Pounder with cheese, is $3.60 in the Chicago area, while Burger King's Angus Bacon and Cheese sandwich runs just over $4.

The high price has helped boost the average guest check at Hardee's by 5% to $4.58 in the past year. Annual average sales per restaurant have risen nearly 19%, from a low of $716,000 in fiscal 2001 to $850,000 in the third quarter of fiscal 2005, but are still below the $1 million industry average.

As Hardee's had hoped, Thickburgers have done especially well with men aged 18 to 34 years old. Recently, at a Hardee's in Niles, Mich., a working-class town, Ben Townsend, 27, bit into a Bacon Double Cheese Thickburger -- all 1,300 gooey calories of it, plus fries. Was he worried it might endanger his health? "I've never even thought about it," said Mr. Townsend, who builds homes. "And to be honest, I don't really care. It just tastes good."

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6) Boston Herald: Boozing bozo gets university 'Fun Czar' gig [L'université Harvard engage un animateur pour assurer que ses étudiants s'amusent.]
http://news.bostonherald.com/localRegional/view.bg?articleid=63467
Bluto hired by Harvard: Boozing bozo gets university `Fun Czar' gig
By Brian Ballou and Laura Crimaldi
Friday, January 14, 2005

As an undergrad at Harvard, he put together a suds-soaked party that was busted by police, and helped create a Web site that encourages drinking and gives tips on how to tap a keg and unhook a bra.

Now, Harvard has tapped 2004 grad and partyman Zac Corker to be a social programmer to help overworked and socially challenged undergrads chill and have fun. Unofficially, he is the ``Fun Czar.''

The hire has some people scratching their heads. ``It's very odd. They seem to be on the wrong side of the issue,'' said Barbara Harrington, the state's executive director of Mothers Against Drunk Driving. ``I have no clue to why Harvard would want to do such a thing. Every college campus has a problem with underage drinking. If a school is going to promote socialization, they have an obligation to make sure the law is not violated, and they have a duty to hire someone who will act responsibly. This individual doesn't seem to fit the bill,'' she said.

Bob Mitchell, a spokesman for Harvard, said, ``He's been very, very successful organizing a number of events across campus. None of these events included alcohol, I might add.''

A spokeswoman at Yale University in New Haven, Conn., said such a position does not exist at Yale because ``students here already know how to have fun.''
``We have hundreds of social clubs and organizations, so there really doesn't seem to be any particular need to have it,'' said spokeswoman Gila Reinstein.

Corker, 23, helped create the Web site www.hahvahdparties.com, aimed at protecting students' ``right to party'' according to Reuters. He will be ``Fun Czar'' for nine months, then join the Peace Corps. He's urging the school to hire another fresh graduate to replace him. His hahvahdparties.com site, which is not sponsored by the university, even explains how to get paid $100 by the school to host an open party on campus. The site is loaded with partying and hangover tips, but emphasizes that underaged drinking and binge drinking are no-no's.

Ironically, Harvard's faculty includes perhaps the foremost authority on college and binge drinking. Henry Wechsler lectures nationally about student binge drinking and other forms of substance abuse, according to the college's Web site. He could not be reached for comment yesterday.

In November, after Boston police shut down a raucous party in Allston that was reportedly attended by blitzed Harvard football tailgaters, Capt. William Evans, who commands Allston-Brighton, said he would make sure Harvard students never receive city permits to consume liquor at football games.

Yesterday, Harvard students weighed in on the ``Fun Czar, saying the school's pockets are so deep they don't mind if administrators want to throw some cash at a commander-in-fun. ``It's sad that it's big news. `Hey kids, we hired a party master for you,' '' said Alexandra Moss, 22, a senior from New York City who described the racy ``how-tos'' on www.hahvahdparties.com, as ``typical boyish-ness.''

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7) Slate/Dear Prudence: The Return! [Certains regrettent la disparition de Prudence, notre aimable conseillère sur la vie sentimentale. Deux lettres cette semaine, l'une d'un homme qui vient d'apprendre que sa femme entretenait pendant les 30 ans de leur marriage une relation avec son petit ami de lycée, et l'autre d'une jeune femme qui se demande si elle doit poursuivre ses études ou suivre l'ultimatum de son copain qui veut qu'elle déménage dans sa ville.]

http://slate.msn.com/id/2112355/
Dear Pru,
This is my dilemma. A couple months ago, my wife's ex-boyfriend from school called and informed me that my eldest daughter was his. Of course I didn't believe him, but to close him down, my daughter and I took a DNA test that proved that, indeed, I was the father. Now here's my problem. Little did I know that my wife and he have kept in touch throughout our marriage—nearly 30 years. In their correspondence she has sent him pictures of herself and cards and letters saying how much she has missed him. I've informed her that he sent me the cards and pictures and that he wants to get on with his own life. My problem is that I now feel that my marriage isn't worth much. I could have easily gotten over a physical affair, but trying to get over an emotional one is driving me nuts because that was from the heart. Please help.

—Wondering

Dear Won,
And Prudie is wondering why this man felt it necessary to not only lie about your daughter's parentage, but to send along nearly 30 years' worth of correspondence, cards, and pictures. There's a chance your wife would not let go of this whatever-it-was, and this man opened their Pandora's box to simply get rid of her. There is also the chance he is merely destructive. You, however, are left with a terrific wound, and Prudie thinks this (maybe) chaste double cross could be rectified with the help of a couples' counselor (maybe). Good luck with what has to be a life-altering blow. And if you decided there was nothing left of the marriage, no one would blame you.

—Prudie, gravely

Dear Prudie,
My boyfriend and I have been together for a little over thee years. However, the last seven months of our relationship have been long-distance (two hours—not really a long distance to me, but he hates it). Anyway, recently I started nursing classes at a prestigious university and am very happy there. But it's a four-year program to receive my BSN, and he isn't happy about being two hours away for four years. Recently we talked about my schooling and what we are going to do. He said that he isn't happy with the distance and asked me to transfer schools to one nearer him. Now I should mention that this was not a request but an ultimatum. He said that either I move after my first year of classes in May or we are breaking up. I don't think that this is really fair of him, and he doesn't seem to understand my problem with it. I love him more than anything and want to be with him. We have discussed getting married someday, but I don't think it is fair of him to give me an ultimatum, especially since I love the school and am doing really well (4.0 GPA). Please help me figure out what to do.

—Ultimatums Suck

Dear Ult,
Some girls are so into romance—and particularly with someone they think might be The One—that four years apart with a two-hour trip would be out of the question. Other girls are so career-oriented—and independent—that there would be no question about what to do. You seem as though you're in the middle. You love your school, you're doing well, and you don't find the drive too taxing. What you will have to decide is if you are willing to give up schooling that you love to secure a peaceful relationship with this man—at his insistence. This is not a decision Prudie feels able to make for you. Good luck weighing all the factors, trying to see down the line, and deciding what is most important.

—Prudie, selectively

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