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VOL. CLXIII ... No. 56,555 + © 2014 The New York Times NEW YORK, MONDAY, JULY 7, 2014 Late Edition Today, partly sunny, humid, high 91. Tonight, partly cloudy, low 75. To- morrow, sun and clouds, chance of an afternoon thunderstorm, high 90. Weather map is on Page C8. $2.50 By ISABEL KERSHNER JERUSALEM — Confronting the possibility of rising retalia- tory violence between Jews and Palestinians, the Israeli authori- ties arrested six Israelis on Sun- day in the killing of a Palestinian teenager, found beaten and burned in a Jerusalem forest last week. After days of near silence about the case, Prime Minister Benjamin Netanyahu condemned what he called a horrific crime and pledged that anyone found guilty would “face the full weight of the law.” Moshe Yaalon, the Is- raeli defense minister, said in a statement that he was “ashamed and shocked by the cruel mur- der,” describing those behind it as “Jewish terrorists.” An Israeli police spokesman, Micky Rosenfeld, said there was a “strong possibility” that the motive for the killing of Muham- mad Abu Khdeir, 16, was “na- tionalistic,” indicating that it was a revenge attack by right-wing Jewish extremists for the recent kidnapping and killing of three Israeli teenagers in the West Bank. Muhammad’s body was discovered on Wednesday, about an hour after he was forced into a car in East Jerusalem, a few yards from his home. A judicial or- der prevented of- ficials from re- vealing details about the sus- pects, but a per- son familiar with the case said several of them were minors. The arrests came after weeks of calls in Israel for harsher military action in the Palestinian territories after the abduction of the Israelis: Eyal Yifrach, 19, Gilad Shaar, 16, and Naftali Fraenkel, 16. After their bodies were found last week, Mr. Netanyahu called their killers “beasts.” The crackdown in the West Bank shook the Palestinian Au- thority and its reconciliation pact with Hamas in Gaza, weakening the more moderate West Bank leadership in the eyes of its pub- lic as it seeks international sup- port for statehood. In the wave of outrage after Muhammad’s killing, Palestinian youths have clashed with Israeli security forces in East Jerusalem and the Galilee in scenes reminis- cent of the Palestinian uprisings in 1987 and 2000. The killings on each side — and the subsequent arrest of the Palestinian’s Ameri- can cousin, whose beating by the Israeli police was caught on video — have raised the specter of the 6 ISRAELIS HELD OVER THE KILLING OF A PALESTINIAN REVENGE SEEN AS MOTIVE Confronting a Rise in Violence, Netanyahu Pledges Justice Continued on Page A5 ODED BALILTY/ASSOCIATED PRESS Tariq Abu Khdeir, 15, arrested in the unrest, is a cousin of the victim and was shown on a video being beaten by Israeli officers. Benjamin Netanyahu By DAVID M. HERSZENHORN KIEV, Ukraine — When pro- Russian rebels first fanned out across eastern Ukraine in April, seizing public buildings, ousting local officials and blockading streets and highways, the gov- ernment’s security forces — a ragtag lot of poorly equipped and understaffed military and police units — were largely paralyzed by dysfunction and defection. They seemed to remain so for months. In the past week, however, af- ter President Petro O. Poroshen- ko called off a cease-fire and or- dered his troops to end the rebel- lion by force, an entirely different Ukrainian military appeared to arrive at the front. Soldiers re- took an important checkpoint at the Russian border, routed insur- gents from the long-occupied city of Slovyansk, and, on Sunday, be- gan to tighten a noose around the regional capital of Donetsk ahead of a potentially decisive show- down. The insurgency is far from over, and Ukraine’s leaders say they still fear a war with Russia that they would certainly lose. Still, the recent success, however tentative, reflects what officials and analysts described as a re- markable, urgent transformation of the military and security appa- ratus in recent months. “The military themselves learned to fight,” said Mykola Sungurovskyi, the director of mil- itary programs at the Razumkov Center, a policy research organ- ization here in the capital of Ukraine. By most standards, the Ukrain- ian armed forces remain in a piti- ful state. But they have benefited from the enlistment of thousands of volunteers into new militias, fi- nancial donations by ordinary cit- izens — including a Kiev Inter- net-technology entrepreneur who raised $35,000 and built a surveillance drone — and an ag- gressive push to repair and up- grade armored personnel carri- ers and other equipment. There has also been aid from abroad. The United States has Kiev’s Military Finds Footing Against Rebels Expert Says the Troops ‘Learned to Fight’ Continued on Page A6 By JOHN ELIGON DETROIT Inell Byrd’s house has a leaky roof. Walls are cracked, sections of ceiling are missing and the con- crete porch is buckling. Most of the furniture is gone and random belongings like Christmas lights and a bicycle are scattered about, the result of preparations for a redecoration that Ms. Byrd has not been able to manage. The front room is bare, its only contents a low-slung futon and a large flat-screen television. With her family finances in shambles, she briefly tried to sell the house. And beyond her walls, she wor- ries that her street — which still has handsome colonials, Tudors and other sprawling homes — abuts one that looks bombed out. “You got these two beautiful blocks,” said Ms. Byrd, 41, a home health aide, referring to Arden Park Boulevard in the city’s his- toric North End, “and everything behind you is, I ain’t going to say Beirut, but basically it just fell off.” But there is also immense po- tential in this shattered urban landscape, despite more than a half-century of government mis- management and residential and industrial flight. Mayor Mike Duggan, who took office in January, promised im- mediate improvements after the city hit a low point last year, be- coming America’s largest to file for bankruptcy. The North End captures both the hope and chal- lenge of the mayor’s pledge. So tracking what happens in this neighborhood this year and next will tell a lot about whether this metropolis, with nearly 690,000 residents, can rebuild. “The North End is an area that has real potential to come back,” the mayor said in an interview. “It’s got a proud history in this city.” Annexed by the city in the late 19th century, the North End once was the northernmost point in Detroit, bordering on the cities of Highland Park and Hamtramck. It quickly became a haven for the upper class. These days it still has some of the city’s most glorious homes Testing Ground for a New Detroit In North End, Hope and Challenges for a Mayor’s Pledge FRED R. CONRAD/THE NEW YORK TIMES Vacant lots abut handsome homes in Detroit’s North End, an area undergoing change. Continued on Page A10 RUIN AND RENEWAL A Block at a Time By MICHAEL CORKERY As government regulators crack down on the financing of terrorists and drug traffickers, many big banks are abandoning the business of transferring money from the United States to other countries, moves that are expected to reverse years of de- clines in the cost of immigrants sending money home to their families. While Mexico may be most af- fected — nearly half of the $51.1 billion in remittances sent from the United States in 2012 ended up in that country — the banks’ broad retreat over the last year is affecting other countries in Latin America and parts of Africa as well. The banks are being held accountable not only for the cus- tomers who directly use their money transfer services but also for their role in collecting remit- tances from money transmitting companies and wiring them abroad. “This is transforming the busi- ness and may increase the costs of international money trans- fers,” said Manuel Orozco, a sen- ior fellow at the Inter-American Dialogue, a research group in Washington. JPMorgan Chase and Bank of America have scrapped low-cost services that allowed Mexican immigrants to send money to their families across the border. The Spanish bank BBVA is re- portedly exploring the sale of its unit that wires money to Mexico and across Latin America. And in BANKS CURTAILING CASH TRANSFERS Costs of Transactions Are Likely to Rise Continued on Page B2 six minutes early during a match at the inaugural tournament, in 1930, but the dramas of this year’s event — including a bi- zarre bite and a backbreaking tackle — have played out with a remarkable immediacy on social media. Over the last month, players like Neymar, Luis Suárez and the United States reserve forward Chris Wondolowski have offered confessions, explanations, inter- pretations and amplifications us- ing services like Twitter, You- Tube, Facebook and Instagram. By SAM BORDEN RIO DE JANEIRO — Zinedine Zidane of France did not apolo- gize on MySpace after his infa- mous head butt in the 2006 World Cup final. Diego Maradona of Ar- gentina did not address his 1986 knuckle-assisted Hand of God goal on America Online, a digital community that did not become prominent for another five years. Controversies have arisen in World Cups since a referee inad- vertently blew the final whistle “If they can jump online, say something, and see it traverse the world in real time, it makes life that much easier,” said Peter Shankman, a social media con- sultant in New York. Most recently, fans have been fretting over an injury to Ney- mar, Brazil’s spindly star striker, who crumpled late in the second half of a quarterfinal match against Colombia after being kneed in the lower back. Screaming and crying, Ney- mar was taken off the field on a stretcher, and it was later re- vealed that he had a fractured vertebra. He will miss the rest of the tournament, which has four teams remaining from the origi- nal 32. The player who kneed him, Juan Camilo Zúñiga, made only a fleeting comment or two as he rushed past members of the news media after the game. It did not take long for Zúñiga to begin re- ceiving death threats and racist taunts from Brazilian fans on Twitter — one of the more print- able comments was that Zúñiga World Cup Players Are Using Hands More Than Ever (to Tweet) The Brazilian star Neymar used a YouTube video to ad- dress fans after being injured. Continued on Page D6 By JASON HOROWITZ Domenic Recchia thinks there’s something for everyone to loathe about the man he wants to unseat in Congress, Michael G. Grimm. There is that 20-count federal indictment, for starters, that ac- cuses Mr. Grimm, a two-term Re- publican from Staten Island, of employing illegal immigrants and hiding around $1 million in sales and wages at his Manhat- tan health-food restaurant, Healthalicious. Not the kind of work history, Mr. Recchia says, that is likely to impress the many union members who live in the neighborhoods of the 11th Dis- trict, encompassing Staten Island and a slice of southern Brooklyn. And then there are the dis- trict’s mothers and fathers, who Mr. Recchia, a Democrat, says ought to be appalled by Mr. Grimm for threatening, on cam- era, to toss a diminutive televi- sion reporter off a United States Capitol balcony — with the part- ing promise: “I’ll break you in half. Like a boy.” “Michael Grimm should pick Tough Guy Gets A Matching Foe On Staten Island Continued on Page A3 More than 20 people were killed in at- tacks in which, residents said, many vic- tims’ throats had been slit. They were the latest in a string of assaults with eth- nic undercurrents. PAGE A4 INTERNATIONAL A4-7 Gruesome Attacks in Kenya An influential environmental group fol- lowed an oil industry strategy to help shape the Obama administration’s car- bon emissions policy. PAGE A9 NATIONAL A8-12 Carbon Plan’s Lobbying Roots The Brooklyn Cyclones wore puffy pi- rate shirts and transformed MCU Park in Coney Island into a one-night shrine to the television comedy. PAGE A14 NEW YORK A13-15 ‘Seinfeld’ in the Park Novak Djokovic, who had lost the last three Grand Slam finals he had played in, squandered a big fourth-set lead against Roger Federer but re- covered to win his second Wim- bledon title. Federer was de- nied an eighth ti- tle that would have made him the oldest man to win Wimbledon in the Open era. PAGE D1 SPORTSMONDAY Back to His Winning Ways It was an unglorious Fourth in movie theaters as ticket sales for this holiday weekend were the weakest in a decade. “Tammy,” the comedian Melissa McCar- thy’s road movie, with Susan Sarandon, pulled in far less than some estimates. The World Cup may have siphoned off some viewers. PAGE C1 ARTS C1-7 Dud Weekend at the Box Office Washington this week will start issuing licenses to sell recreational marijuana. But residents are still divided. PAGE A8 Next Opening for Marijuana An electrical cord in a packed Brooklyn apartment on the 19th floor started a blaze that killed a firefighter. PAGE A13 Firefighter Is Mourned A Nevada city known for its well-worn casinos is recasting itself as a home for technology start-ups. PAGE B1 BUSINESS DAY B1-5 Reno Looks to a Tech Future In the Amazon rain forest, a tournament called the Peladão is equal parts soccer and beauty pageant. PAGE D1 SPORTSMONDAY D1-8 The Beautiful Game Paul Krugman PAGE A17 EDITORIAL, OP-ED A16-17 U(D54G1D)y+?!:!#!=!&

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VOL. CLXIII . . . No. 56,555 + © 2014 The New York Times NEW YORK, MONDAY, JULY 7, 2014

Late EditionToday, partly sunny, humid, high 91.Tonight, partly cloudy, low 75. To-morrow, sun and clouds, chance ofan afternoon thunderstorm, high90. Weather map is on Page C8.

$2.50

By ISABEL KERSHNER

JERUSALEM — Confrontingthe possibility of rising retalia-tory violence between Jews andPalestinians, the Israeli authori-ties arrested six Israelis on Sun-day in the killing of a Palestinianteenager, found beaten andburned in a Jerusalem forest lastweek.

After days of near silenceabout the case, Prime MinisterBenjamin Netanyahu condemnedwhat he called a horrific crimeand pledged that anyone foundguilty would “face the full weightof the law.” Moshe Yaalon, the Is-raeli defense minister, said in astatement that he was “ashamedand shocked by the cruel mur-der,” describing those behind itas “Jewish terrorists.”

An Israeli police spokesman,Micky Rosenfeld, said there wasa “strong possibility” that themotive for the killing of Muham-mad Abu Khdeir, 16, was “na-tionalistic,” indicating that it wasa revenge attack by right-wingJewish extremists for the recentkidnapping and killing of threeIsraeli teenagers in the WestBank. Muhammad’s body wasdiscovered on Wednesday, aboutan hour after he was forced into acar in East Jerusalem, a fewyards from hishome.

A judicial or-der prevented of-ficials from re-vealing detailsabout the sus-pects, but a per-son familiar withthe case saidseveral of themwere minors.

The arrestscame after weeks of calls in Israelfor harsher military action in thePalestinian territories after theabduction of the Israelis: EyalYifrach, 19, Gilad Shaar, 16, andNaftali Fraenkel, 16. After theirbodies were found last week, Mr.Netanyahu called their killers“beasts.”

The crackdown in the WestBank shook the Palestinian Au-thority and its reconciliation pactwith Hamas in Gaza, weakeningthe more moderate West Bankleadership in the eyes of its pub-lic as it seeks international sup-port for statehood.

In the wave of outrage afterMuhammad’s killing, Palestinianyouths have clashed with Israelisecurity forces in East Jerusalemand the Galilee in scenes reminis-cent of the Palestinian uprisingsin 1987 and 2000. The killings oneach side — and the subsequentarrest of the Palestinian’s Ameri-can cousin, whose beating by theIsraeli police was caught on video— have raised the specter of the

6 ISRAELIS HELDOVER THE KILLINGOF A PALESTINIAN

REVENGE SEEN AS MOTIVE

Confronting a Rise in

Violence, Netanyahu

Pledges Justice

Continued on Page A5

ODED BALILTY/ASSOCIATED PRESS

Tariq Abu Khdeir, 15, arrested in the unrest, is a cousin of the victim and was shown on a video being beaten by Israeli officers.

BenjaminNetanyahu

By DAVID M. HERSZENHORN

KIEV, Ukraine — When pro-Russian rebels first fanned outacross eastern Ukraine in April,seizing public buildings, oustinglocal officials and blockadingstreets and highways, the gov-ernment’s security forces — aragtag lot of poorly equipped andunderstaffed military and policeunits — were largely paralyzedby dysfunction and defection.They seemed to remain so formonths.

In the past week, however, af-ter President Petro O. Poroshen-ko called off a cease-fire and or-dered his troops to end the rebel-lion by force, an entirely differentUkrainian military appeared toarrive at the front. Soldiers re-took an important checkpoint atthe Russian border, routed insur-gents from the long-occupied cityof Slovyansk, and, on Sunday, be-gan to tighten a noose around theregional capital of Donetsk aheadof a potentially decisive show-down.

The insurgency is far fromover, and Ukraine’s leaders saythey still fear a war with Russiathat they would certainly lose.Still, the recent success, howevertentative, reflects what officialsand analysts described as a re-markable, urgent transformationof the military and security appa-ratus in recent months.

“The military themselveslearned to fight,” said MykolaSungurovskyi, the director of mil-itary programs at the RazumkovCenter, a policy research organ-ization here in the capital ofUkraine.

By most standards, the Ukrain-ian armed forces remain in a piti-ful state. But they have benefitedfrom the enlistment of thousandsof volunteers into new militias, fi-nancial donations by ordinary cit-izens — including a Kiev Inter-net-technology entrepreneurwho raised $35,000 and built asurveillance drone — and an ag-gressive push to repair and up-grade armored personnel carri-ers and other equipment.

There has also been aid fromabroad. The United States has

Kiev’s MilitaryFinds FootingAgainst Rebels

Expert Says the Troops

‘Learned to Fight’

Continued on Page A6

By JOHN ELIGON

DETROIT — Inell Byrd’shouse has a leaky roof.

Walls are cracked, sections ofceiling are missing and the con-crete porch is buckling. Most ofthe furniture is gone and randombelongings like Christmas lightsand a bicycle are scattered about,the result of preparations for aredecoration that Ms. Byrd hasnot been able to manage.

The front room is bare, its onlycontents a low-slung futon and alarge flat-screen television. Withher family finances in shambles,she briefly tried to sell the house.

And beyond her walls, she wor-ries that her street — which stillhas handsome colonials, Tudorsand other sprawling homes —abuts one that looks bombed out.

“You got these two beautiful

blocks,” said Ms. Byrd, 41, a homehealth aide, referring to ArdenPark Boulevard in the city’s his-toric North End, “and everythingbehind you is, I ain’t going to sayBeirut, but basically it just felloff.”

But there is also immense po-tential in this shattered urbanlandscape, despite more than ahalf-century of government mis-management and residential andindustrial flight.

Mayor Mike Duggan, who tookoffice in January, promised im-mediate improvements after thecity hit a low point last year, be-coming America’s largest to file

for bankruptcy. The North Endcaptures both the hope and chal-lenge of the mayor’s pledge. Sotracking what happens in thisneighborhood this year and nextwill tell a lot about whether thismetropolis, with nearly 690,000residents, can rebuild.

“The North End is an area thathas real potential to come back,”the mayor said in an interview.“It’s got a proud history in thiscity.”

Annexed by the city in the late19th century, the North End oncewas the northernmost point inDetroit, bordering on the cities ofHighland Park and Hamtramck.It quickly became a haven for theupper class.

These days it still has some ofthe city’s most glorious homes

Testing Ground for a New Detroit

In North End, Hope and Challenges for a Mayor’s Pledge

FRED R. CONRAD/THE NEW YORK TIMES

Vacant lots abut handsome homes in Detroit’s North End, an area undergoing change.

Continued on Page A10

RUIN AND RENEWAL

A Block at a Time

By MICHAEL CORKERY

As government regulatorscrack down on the financing ofterrorists and drug traffickers,many big banks are abandoningthe business of transferringmoney from the United States toother countries, moves that areexpected to reverse years of de-clines in the cost of immigrantssending money home to theirfamilies.

While Mexico may be most af-fected — nearly half of the $51.1billion in remittances sent fromthe United States in 2012 endedup in that country — the banks’broad retreat over the last year isaffecting other countries in LatinAmerica and parts of Africa aswell. The banks are being heldaccountable not only for the cus-tomers who directly use theirmoney transfer services but alsofor their role in collecting remit-tances from money transmittingcompanies and wiring themabroad.

“This is transforming the busi-ness and may increase the costsof international money trans-fers,” said Manuel Orozco, a sen-ior fellow at the Inter-AmericanDialogue, a research group inWashington.

JPMorgan Chase and Bank ofAmerica have scrapped low-costservices that allowed Mexicanimmigrants to send money totheir families across the border.The Spanish bank BBVA is re-portedly exploring the sale of itsunit that wires money to Mexicoand across Latin America. And in

BANKS CURTAILINGCASH TRANSFERS

Costs of Transactions

Are Likely to Rise

Continued on Page B2

six minutes early during a matchat the inaugural tournament, in1930, but the dramas of thisyear’s event — including a bi-zarre bite and a backbreakingtackle — have played out with aremarkable immediacy on socialmedia.

Over the last month, playerslike Neymar, Luis Suárez and theUnited States reserve forwardChris Wondolowski have offeredconfessions, explanations, inter-pretations and amplifications us-ing services like Twitter, You-Tube, Facebook and Instagram.

By SAM BORDEN

RIO DE JANEIRO — ZinedineZidane of France did not apolo-gize on MySpace after his infa-mous head butt in the 2006 WorldCup final. Diego Maradona of Ar-gentina did not address his 1986knuckle-assisted Hand of Godgoal on America Online, a digitalcommunity that did not becomeprominent for another five years.

Controversies have arisen inWorld Cups since a referee inad-vertently blew the final whistle

“If they can jump online, saysomething, and see it traversethe world in real time, it makeslife that much easier,” said PeterShankman, a social media con-sultant in New York.

Most recently, fans have beenfretting over an injury to Ney-mar, Brazil’s spindly star striker,who crumpled late in the secondhalf of a quarterfinal matchagainst Colombia after beingkneed in the lower back.

Screaming and crying, Ney-mar was taken off the field on astretcher, and it was later re-

vealed that he had a fracturedvertebra. He will miss the rest ofthe tournament, which has fourteams remaining from the origi-nal 32.

The player who kneed him,Juan Camilo Zúñiga, made only afleeting comment or two as herushed past members of the newsmedia after the game. It did nottake long for Zúñiga to begin re-ceiving death threats and racisttaunts from Brazilian fans onTwitter — one of the more print-able comments was that Zúñiga

World Cup Players Are Using Hands More Than Ever (to Tweet)

The Brazilian star Neymarused a YouTube video to ad-dress fans after being injured.Continued on Page D6

By JASON HOROWITZ

Domenic Recchia thinksthere’s something for everyoneto loathe about the man he wantsto unseat in Congress, Michael G.Grimm.

There is that 20-count federalindictment, for starters, that ac-cuses Mr. Grimm, a two-term Re-publican from Staten Island, ofemploying illegal immigrantsand hiding around $1 million insales and wages at his Manhat-tan health-food restaurant,Healthalicious. Not the kind ofwork history, Mr. Recchia says,that is likely to impress the manyunion members who live in theneighborhoods of the 11th Dis-trict, encompassing Staten Islandand a slice of southern Brooklyn.

And then there are the dis-trict’s mothers and fathers, whoMr. Recchia, a Democrat, saysought to be appalled by Mr.Grimm for threatening, on cam-era, to toss a diminutive televi-sion reporter off a United StatesCapitol balcony — with the part-ing promise: “I’ll break you inhalf. Like a boy.”

“Michael Grimm should pick

Tough Guy Gets

A Matching Foe

On Staten Island

Continued on Page A3

More than 20 people were killed in at-tacks in which, residents said, many vic-tims’ throats had been slit. They werethe latest in a string of assaults with eth-nic undercurrents. PAGE A4

INTERNATIONAL A4-7

Gruesome Attacks in Kenya

An influential environmental group fol-lowed an oil industry strategy to helpshape the Obama administration’s car-bon emissions policy. PAGE A9

NATIONAL A8-12

Carbon Plan’s Lobbying RootsThe Brooklyn Cyclones wore puffy pi-rate shirts and transformed MCU Parkin Coney Island into a one-night shrineto the television comedy. PAGE A14

NEW YORK A13-15

‘Seinfeld’ in the ParkNovak Djokovic, who had lost the lastthree Grand Slam finals he had playedin, squandered a big fourth-set lead

against RogerFederer but re-covered to winhis second Wim-bledon title.Federer was de-nied an eighth ti-tle that wouldhave made himthe oldest man towin Wimbledonin the Open era.

PAGE D1

SPORTSMONDAY

Back to His Winning WaysIt was an unglorious Fourth in movietheaters as ticket sales for this holidayweekend were the weakest in a decade.“Tammy,” the comedian Melissa McCar-thy’s road movie, with Susan Sarandon,pulled in far less than some estimates.The World Cup may have siphoned offsome viewers. PAGE C1

ARTS C1-7

Dud Weekend at the Box Office

Washington this week will start issuinglicenses to sell recreational marijuana.But residents are still divided. PAGE A8

Next Opening for MarijuanaAn electrical cord in a packed Brooklynapartment on the 19th floor started ablaze that killed a firefighter. PAGE A13

Firefighter Is Mourned

A Nevada city known for its well-worncasinos is recasting itself as a home fortechnology start-ups. PAGE B1

BUSINESS DAY B1-5

Reno Looks to a Tech FutureIn the Amazon rain forest, a tournamentcalled the Peladão is equal parts soccerand beauty pageant. PAGE D1

SPORTSMONDAY D1-8

The Beautiful Game

Paul Krugman PAGE A17

EDITORIAL, OP-ED A16-17

U(D54G1D)y+?!:!#!=!&

C M Y K Nxxx,2014-07-07,A,001,Bs-BK,E2_+