SACRAMENTO

Chilean leader links trade, social justice

Robust investment in social welfare programs in the midst of a booming economy has helped make Chile more economically competitive, the country's president told California's business and political leaders on Thursday.

President Michelle Bachelet said she is taking advantage of record prices for Latin American exports to make a "massive investment in education."

She said a thriving democracy depends on people enjoying personal freedom, not worrying about falling into poverty.

"Democracy means delivering for everybody in an economy," Bachelet told a gathering of the California Chamber of Commerce in the state capital. "We believe it's not necessary to do a trade-off between trade and social justice, that we can do both at the same time."

It's not just possible, but necessary, for prosperous countries to invest simultaneously in their economies and social programs such as health care and education, she said.

Bachelet, Chile's first female president, is visiting California for a trade mission on energy, education and innovation. She also addressed the 80-member California Assembly and signed a cooperation agreement with Gov. Arnold Schwarzenegger.

Her goal is to transform Chile's economy from one that is commodity-based to one that is more specialized, focusing on services and high-tech products.

- Associated Press

CYPRESS

Man, 76, arrested in steroid investigation

Police say a 76-year-old man has been arrested in Orange County for investigation of selling illegal steroids after 5,000 doses of the performance-enhancing drugs were found at his home.

Police say John Livingstone of Cypress was arrested Wednesday. A phone message left at his home Thursday by the Associated Press was not immediately returned.

Sgt. Tom Bruce says officers armed with a search warrant found an estimated $55,000 worth of steroids, along with syringes and business receipts.

Livingstone was booked for investigation of possessing anabolic steroids and possessing drugs for sale and transportation. He was released on $50,000 bail.

- Associated Press

FOSTER CITY

Fixed-share fishing gets initial approval

Pacific Coast fishery regulators voted Thursday for new rules that would dramatically change the way fishermen harvest snapper, flounder, cod and other bottom-dwelling fish.

The Pacific Fishery Management Council gave preliminary approval to a plan to give each fishing boat a fixed share of the West Coast groundfish fishery. A final vote is scheduled for November.

The new rules would give each boat a percentage of the total groundfish harvest, so fishermen would not need to rush out to grab their share of the catch. The new management program is also aimed at reducing the amount of bycatch - unwanted fish that are caught and thrown back to sea.

"We're confident there will be strong conservation improvements with this program," said Johanna Thomas of the Environmental Defense Fund.

In 2000, the federal government declared the West Coast groundfish fishery a disaster after a sharp decline in fish populations. Regulators adopted more stringent fishing restrictions to help the fishery recover.

- Associated Press

SANTA ANA

Ex-school official will pay back funds

The former finance director of Soka University of America has pleaded guilty to embezzling from the school in Aliso Viejo (Orange County) and will pay back about $1.7 million.

Prosecutors say 52-year-old Kiyoshi Hatanaka transferred funds from school accounts to personal ones between 1999 and 2006. He allegedly spent some of the money on casino gambling.

The school is affiliated with the largest Buddhist sect in Japan. Hatanaka left the university in 2006 after the bank contacted school officials about the transfers.

He entered his pleas Monday at federal court in Orange County. Hatanaka faces up to 10 years in prison at sentencing on Aug. 25.

- Associated Press

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