Obama's ex-rival gets commerce post

PRESIDENT-ELECT Barack Obama has named a second former campaign rival to his cabinet, choosing New Mexico governor Bill Richardson…

PRESIDENT-ELECT Barack Obama has named a second former campaign rival to his cabinet, choosing New Mexico governor Bill Richardson for the post of commerce secretary, writes Denis Stauntonin Washington

Mr Richardson, who served as energy secretary and UN ambassador under Bill Clinton, endorsed Mr Obama for the Democratic nomination after his own bid won little support.

"Bill Richardson is a leader who shares my values, and he measures progress the same way I do. Are we creating good jobs instead of losing them? Are incomes growing instead of shrinking?" Mr Obama told reporters in Chicago.

The first Hispanic to be appointed to Mr Obama's cabinet, Mr Richardson switched from English to Spanish yesterday when he spoke of his pride in accepting the post. He thanked Hispanic-Americans for their support and said their strong turnout for Mr Obama last month showed strength and unity.

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"It will be a great honour to serve a president who recognises that America's diverse heritage is its greatest strength," Mr Richardson said.

Mr Obama dismissed a suggestion that Hispanic voters would be disappointed that Mr Richardson had not been appointed secretary of state - the post awarded to Hillary Clinton this week. "Commerce secretary is a pretty good job," Mr Obama said.

"One of the strong beliefs that I've always held is that there's no contradiction between diversity and excellence. I'm looking for the best people to serve."

Yesterday's announcement came as Americans heard that their economy had been officially in recession since December 2007 and that manufacturing output had plunged to a 26-year low.

Mr Obama has promised bold action to stimulate the economy, but any new recovery plan will need bipartisan support after Democratic hopes of a filibuster-proof majority in the US senate were shattered by a Republican victory in a run-off in Georgia on Tuesday.

Republican incumbent Saxby Chambliss won more votes than his Democratic challenger Jim Martin in a three-way race last month, but fell short of 50 per cent, triggering this week's run-off. On Tuesday, Mr Chambliss increased his margin of victory from three points to 15 points, cheering Republicans after weeks of unremitting bad news.

"You have delivered tonight a strong message to the world that conservative Georgia values matter," Mr Chambliss told supporters. "You have delivered a message that a balance of government in Washington is necessary, and that's not only what the people of Georgia want, but what the people of America want."

Most of the Republicans' biggest stars, including former presidential candidate John McCain and his running-mate Sarah Palin, former New York mayor Rudy Giuliani and former Massachusetts governor Mitt Romney, campaigned for Mr Chambliss in Georgia in the past few weeks.

Former president Bill Clinton and former vice-president Al Gore campaigned for the Democrat, as did the rapper Ludacris, but Mr Obama stayed away.

African-American turnout was unusually high in November and although there were no exit polls following Tuesday's run-off, fewer black voters appeared to have gone to the polls.

The fate of Minnesota's senate seat remains uncertain. Comedian Al Franken, who is challenging Republican incumbent Norm Coleman, claimed that with 94 per cent of the votes recounted, he had opened up a lead of 22 votes.

Mr Franken picked up 37 votes due to a combined machine malfunction and human error that left 171 votes uncounted until this week. More than 6,000 ballots have been challenged, with Mr Coleman challenging 183 more than Mr Franken.