Insight: Divided Damascus confronted by all-out war


DAMASCUS (Reuters) - MiG warplanes roar low overhead to strike rebels fighting to oust President Bashar al-Assad on the fringes of Damascus, while artillery batteries pound the insurgents from hills overlooking a city divided between all-out war and a deceptive calm.


Whole families can be obliterated by air raids that miss their targets. Wealthy Syrians or their children are kidnapped. Some are returned but people tell grim tales of how others are tortured and dumped even when the ransom is paid.


People also tell of prisoners dying under torture or from infected wounds; of looting by the government's feared shabbiha militias or by rebels fighting to throw out the Assad family.


That is one Damascus. In the other, comprising the central districts of a capital said to be the oldest continually inhabited city in the world, the restaurant menus are full, the wine is cheap and the souks are packed with shoppers.


Employees report for work, children go to school and shops are open, seemingly undeterred by the din and thud of war.


The two cities exist a few miles apart - for now.


For Damascus and its outskirts are rapidly descending into civil war and everything that comes with it - lawlessness, looting, kidnapping and revenge killings. Like the rest of the country, the capital and its suburbs are crawling with armed gangs.


"Anybody can come to you pretending he is security and grab you in broad daylight, put you in a car and speed off and nobody dares interfere or rescue you," says Lama Zayyat, 42. "A girl in the 7th grade was kidnapped and her father was asked to pay a big ransom. The same happened to other children," she said.


Nobody really knows who is behind the kidnappings. In one gang, one brother is in charge of abductions while another brother negotiates with the victims. The fear is palpable.


NO SECT HAS BEEN SPARED


The war has not yet reached the heart of the capital, but it is shredding the suburbs. In the past week, government troops backed by air power unleashed fierce barrages on the east of the city in an attempt to flush out rebel groups.


Most of central Damascus is controlled by Assad's forces, who have erected checkpoints to stop bomb attacks. The insurgents have so far failed to take territory in the center.


Just as loyalist forces seem unable to regain control of the country, there looks to be little chance the rebels can storm the center of Damascus and attack the seat of Assad's power.


For most of last week the army rained shells on the eastern and southern neighborhoods of Douma, Jobar, Zamalka and Hajar al-Aswad, using units of the elite Republican Guard based on the imposing Qasioun mountain that looms over the city.


The rebels, trying to break through the government's defense perimeter, were periodically able to overrun roadblocks and some army positions, but at heavy cost.


Jobar and Zamalka are situated near military compounds housing Assad's forces, while Hajar al-Aswad in the south is one of the gateways into the city, close to Assad's home and the headquarters of his republican guard and army.


Since the uprising began two years ago, 70,000 people have been killed, 700,000 have been driven from Syria and millions more are displaced, homeless and hungry. No section of society has been spared, whether Christians, Alawites or Sunnis, but in every community it is the poor who are suffering most.


Electricity is sporadic. Hospitals are understaffed as so many doctors - often targeted on suspicion of treating rebel wounded - have fled. Hotels and businesses barely function.


Outside petrol stations and bakeries, queues are long and supplies often run out, meaning people have to come back the next day. Those who can afford it pay double on a thriving black market.


The scale of the suffering can be seen in the ubiquitous obituary notices on the walls of Damascus streets - some announcing the deaths of whole families killed by shelling.


As if oblivious of these private daily tragedies, the government insists the situation is under control, while the rebels say the Assads' days are numbered.


NOWHERE NEAR OVER


Ordinary Syrians are convinced their ordeal is nowhere near over. While they believe Assad will not be able to reverse the gains of the rebels, they cannot see his enemies prevailing over his superior firepower, and Russian and Iranian support.


"The regime won't be able to crush the revolution and the rebels won't be able to bring down the regime," said leading opposition figure Hassan Abdel-Azim. "The continuation of violence won't lead to the downfall of the regime, it will lead to the seizure of the country by armed gangs, which will pose a grave danger not only to Syria but to our neighbors".


"Right now no one is capable of winning," said a Damascus-based senior Arab envoy. "The crisis will continue if there is no political process. It is deadlock."


Other diplomats in Damascus say the United States and its allies are getting cold feet about arming the rebels, fearing the growing influence of Islamist radicals such the al-Nusra Front linked to al-Qaeda, banned last year by Washington.


Some remarks recur again and again in Damascus conversations: "Maybe he will stay in power, after all", and, above all, "Who is the alternative to Assad?"


"At first I thought it was a matter of months. That's why I came here and stayed to bear witness to the final moments," said Rana Mardam Beik, a Syrian-American writer. "But it looks like it will be a while so I am thinking of going back to the U.S."


Loyalty to Assad is partly fed by fear of the alternative. Facing a Sunni-dominated revolt, Syria's minorities, including Christians and Assad's own Alawites - an offshoot of Shi'ite Islam - fear they will slaughtered or sidelined if the revolution succeeds and Sunni fundamentalists come to power.


MINORITIES' FEAR


Many Christians are already trying to emigrate to countries such as Sweden, diplomats say.


"The minorities have every right to be frightened because no one knows what is the alternative. Is it a liberal, civic, pluralistic and democratic state, or is the alternative an Islamist extremist rule that considers the minorities infidels and heretics?" said Abdel Azim.


The government tells the minorities the only alternative to Assad is Islamism. Loyalist brutality against the Sunni majority is in danger of making this a self-fulfilling prophecy, by sucking in jihadi extremists from Libya to Saudi Arabia.


"I am not with the regime but we are sure that if Bashar goes the first people they will come for are the Alawites, then the Shi'ites and then us Christians. They are fanatics," said George Husheir, 50, an IT engineer.


At the Saint Joseph Church in Bab Touma, the old Christian quarter of Damascus, Christians in their dozens, mostly middle-aged and older couples, gathered for mass on a Friday morning.


"We don't know what the future holds for us and for this country," said the priest in his sermon. "The Christians of Syria need to pray more."


Nabiha, a dentist in her 40s, said: "Bashar is a Muslim president but he is not a fanatic. He gave us everything. Why shouldn't we love him. Look at us here in our church, we pray, we mark our religious rituals freely, we do what we like and nobody interferes with us."


The fear of the Christians extends to the Alawite and minority Shi'ites. "If Bashar goes we definitely have to leave too because the Sufianis (Sunni Salafis) are coming and they are filled with a sectarian revenge against us," said one wealthy middle class Shi'ite.


COSTLY WAR


Alongside sectarian hatreds, class and tribal acrimony is also surfacing. Wealthy Sunnis in the capital are already in a panic about poor Sunni Islamists from rural areas descending on their neighborhoods.


"When they come they will eat us alive", one rich Sunni resident of Damascus said, repeating what a cab driver dropping him in the posh Abou Roummaneh district told him: "Looting these houses will be allowed."


Yet many activists feel protective of the revolution, despite the brutal behavior of some Islamist rebels.


"People talk about chaos and anarchy after Assad, but so what if we have two years of a messy transition? That is better than to endure another 30 years of this rule," said Rana Darwaza, 40, a Sunni academic in Damascus.


Prominent human rights lawyer Anwar al-Bunni said the suffering is a price that had to be paid. "Those on the ground will continue to fight even with their bare hands", he said.


He said there are thousands of prisoners in horrific conditions in Assad's jails. Some suffocate in overcrowded cells while others die under torture or from untreated wounds. "They don't give them medical treatment or pain killers or antibiotics. They leave them to die," he said.


Close watchers of Syria predict that if there is no settlement in a few months the conflict could go on for years. Yet the economy is collapsing, leaving the government to rely on dwindling foreign reserves, private assets and Iranian funds.


There is no tourism, no oil revenue, and 70 percent of businesses have left Syria, said analyst Nabil Samman. "We are heading for destruction, the future is dark", he added.


Added to the religious animosity between the Sunni majority and the Alawite minority who took control when Hafez al-Assad seized power in 1970 are social and economic grievances fuelled by the predatory practices of the elite.


This resentment extends to young middle class Syrians who feel they have lost a way of life and that their country is being used by regional powers for proxy war.


"All the regional point-scoring is taking place in Syria. We have Libyan fighters and Saudis fighting for freedom in Syria, why are they here? Let them go and demand freedom in their own countries?," said banker Hani Hamaui, 29.


Two years into the uprising, Assad is hanging on. Some will always back him and others want him dead. But many just want an end to the fighting. They may have to wait for some time.


Signs daubed on the gates to the city by Assad's troops are a reminder that the battle for Damascus will be costly. "Either Assad, or we will set the country ablaze", they say.


(Editing by Giles Elgood)



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Olympics: Wrestlers vow to fight Olympic removal






PARIS: Wrestlers around the world on Wednesday vowed to fight to save the ancient sport's Olympic status, after the International Olympic Committee voted to drop it for the 2020 Games.

Japan and Turkey -- whose cities Tokyo and Istanbul are bidding to host the Games in seven years' time -- led the calls for the world body to reconsider, as an online petition was organised urging a rethink and gained thousands of supporters.

The president of the Turkish wrestling federation, Hamza Yerlikaya, called the decision, taken at the IOC executive board meeting in Lausanne, Switzerland, on Tuesday, "unfair" and a "mistake" that they would seek to overturn.

"To have the 2020 Olympics in Istanbul without wrestling is unthinkable," said Yerlikaya, himself a double Olympic gold medallist, three-time world champion and eight-time European champion in Greco-Roman wrestling.

"We won't allow it," he added.

In Japan, Yerlikaya's counterpart Tomiaki Fukuda said on his federation's website that he was "dissatisfied and baffled", echoing the views of the sport's world governing body, which called the decision "an aberration".

Wrestling will remain on the programme for the 2016 Olympics in Rio de Janeiro but faces a fight against seven other sports for inclusion at the Games four years later. A final decision is to be made when all IOC members meet in September.

Members are seen as unlikely to vote against the executive board, however, raising the prospect that one of the few sports that survived from the original Olympics in ancient Greece into the modern era will disappear.

Wrestling first appeared in 708 BC and has only ever been left out of the Olympic programme once before in 1900.

The International Federation of Associated Wrestling Styles (FILA) has vowed to fight the decision, while multiple medallists Russia and Iran have also said they hoped the IOC would backtrack.

"This issue will definitely be a big blow to the country's sport, as it is one of our country's most popular sports," the head of Iran's national Olympic commitee, Mohammad Aliabadi was quoted as saying in Iranian media, "I will certainly pursue the case."

IOC president Jacques Rogge meanwhile insisted on Wednesday that the vote -- by secret ballot -- was fair and said he understood the angry response from those involved in the sport.

A meeting was planned between the committee and the International Federation of Associated Wrestling Styles (FILA), to discuss the matter, he told a news conference in Lausanne.

Wrestlers have been left dismayed by the decision, with Japan's undisputed queen of the ring, Saori Yoshida, saying: "I am so devastated that I don't know what to do."

Yoshida, a 55kg-class freestyle wrestler who is the face of Tokyo's campaign for the right to host the 2020 Games, has won a record 13 straight Olympic and world championship gold medals over 10 years.

In India, Sushil Kumar, who won a bronze in Beijing and a silver in London last year, said: "I still can't get over the news that we won't be at the Olympics.

"All sportsmen look towards the Olympics as the pinnacle of excellence, everyone wants to take part in them. Now what do we do? Give up wrestling? I hope the IOC will reconsider this decision."

An online petition at change.org entitled "The International Olympic Committee: Save Wrestling as an Olympic sport #SaveOlympicWrestling" has also been mounted, urging the US Senate to take up the matter.

By late afternoon on Wednesday, it had more than 21,000 signatures.

On Twitter, one user, @WrestlersLoveUs, wrote: "Ancient Olympic wrestlers used to sometimes fight to the death. IOC better understand we're ready to do that again. #SaveOlympicWrestling."

-AFP/fl



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Jawbone warns of 'limited' MyTalk hack, disables old passwords



Bluetooth headset maker Jawbone informed its customers recently that its MyTalk service has been hacked.


In a letter to users obtained by Engadget, Jawbone wrote that it was the target of an "isolated" attack aimed at accessing user information. The company said that the hackers stole some of its MyTalk users' names, e-mail addresses, and the encrypted version of their password.


"We took immediate action to protect your login information," Jawbone wrote to its customers. "Based on our investigation to date, we do not believe there has been any unauthorized use of login information or unauthorized access to information in your account."



Although Jawbone is best known for its Bluetooth headsets, the company's MyTalk platform allows owners to customize their device through additional applications that can enhance the functionality of their headset or speaker.


According to the letter obtained by Engadget, Jawbone has disabled the passwords that were hacked and required users to reset them.


CNET has contacted Jawbone for comment. We will update this story when we have more information.


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Pope: I'm resigning for "the good of the church"

Vatican City Looking tired but serene, Pope Benedict XVI told thousands of faithful Wednesday that he was stepping down for "the good of the church," speaking in his first public appearance since dropping the bombshell announcement of his resignation.

The 85-year-old Benedict basked in more than a minute-long standing ovation when he entered the packed audience hall for his traditional Wednesday general audience. He was interrupted by applause by the thousands of people, many of whom had tears in their eyes.

A huge banner reading "Grazie Santita" (Thank you Your Holiness) was strung up at the back of the hall.

Benedict appeared wan and spoke very softly, but his eyes twinkled with joy at the flock's warm and heartfelt welcome. He repeated in Italian what he had told his cardinals Monday in Latin: that he simply didn't have the strength to continue.

"As you know, I have decided to renounce the ministry that the Lord gave to me on April 19, 2005," he said, to applause. "I did this in full liberty for the good of the church."

He asked the faithful "to continue to pray for the pope and the church."

Benedict is the first pope to resign in nearly 600 years, and the decision has placed the Vatican in uncharted waters: No one knows what he'll be called or what he'll wear after Feb. 28.

The Vatican, however, has made it clear that Benedict will play no role in the election of his successor, and once retired, he will be fully retired. He plans to live a life of prayer in a converted monastery on the far northern edge of the Vatican gardens.

As a result, Benedict's final public appearances are expected to draw great crowds, as they may well represent some of the last public speeches for a man who has spent his life — as a priest, a cardinal and a pope — teaching and preaching.

And they will also represent a way for the faithful to say farewell under happier circumstances than when his predecessor, Pope John Paul II, died in 2005.

"We were just coming for vacation, and now we are getting all of this!" marveled Terry Rodger, a tourist from New Orleans as he headed to the audience. "I am very excited. I'm surprised."

The audience was the start of a busy day for Benedict: he will also preside over Ash Wednesday services later in the day to mark the official start of the Catholic Church's solemn Lenten season. The service is usually held in a church on Rome's Aventine hill, but was moved at the last minute to St. Peter's Basilica. The Vatican said the shift was made to accommodate the crowds, though it will also spare the pope the usual procession to the church.

The Vatican insisted no serious medical ailment was behind Benedict's decision to retire, though it admitted for the first time on Tuesday that Benedict has had a pacemaker for years and recently had it replaced.

The move sets the stage for a conclave by mid-March to elect a new pope. Benedict's final general audience will be held Feb. 27.

"It is the perfect occasion to give a cordial and affectionate goodbye to this pope who has given us a great example of courage, humility, inner honesty, and a great love for the church," said Monsignor Claudio Maria Celli, head of the Vatican's communications office.

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Charred Human Remains Found in Burned Cabin













Investigators have located charred human remains in the burned-out cabin where they believe suspected cop killer and ex-LAPD officer Christopher Dorner was holed up as the structure burned to the ground, police said.


The human remains were found within the debris of the burned cabin and identification will be attempted through forensic means, the San Bernardino County Sheriff-Coroner Department said in a news release early this morning.


Dorner barricaded himself in the cabin in the San Bernardino Mountains near Big Bear Tuesday afternoon after engaging in a gunfight with police, killing one officer and injuring another, the San Bernardino County Sheriff's Department said.


Cindy Bachman, a spokeswoman for the department, which is the lead agency in the action, said Tuesday night investigators would remain at the site all night.


FULL COVERAGE: Christopher Dorner Manhunt


When Bachman was asked whether police thought Dorner was in the burning cabin, she said, "Right. We believe that the person that barricaded himself inside the cabin engaged in gunfire with our deputies and other law enforcement officers is still inside there, even though the building burned."


Bachman spoke shortly after the Los Angeles Police Department denied earlier reports that a body was found in the cabin, contradicting what law enforcement sources told ABC News and other news organizations.


Police around the cabin told ABC News they saw Dorner enter but never leave the building as it was consumed by flames, creating a billowing column of black smoke seen for miles.


A news conference is scheduled for later today in San Bernardino.


One sheriff's deputy was killed in a shootout with Dorner earlier Tuesday afternoon, believed to be his fourth victim after killing a Riverside police officer and two other people this month, including the daughter of a former police captain, and promising to kill many more in an online manifesto.



PHOTOS: Former LAPD Officer Suspected in Shootings








Carjacking Victim Says Christopher Dorner Was Dressed for Damage Watch Video









Christopher Dorner Manhunt: Inside the Shootout Watch Video









Chris Dorner Manhunt: Fugitive Ex-Cop in Shootout With Police Watch Video





Cops said they heard a single gunshot go off from inside the cabin just as they began to see smoke and fire. Later they heard the sound of more gunshots, which was the sound of ammunition being ignited by the heat of the blaze, law enforcement officials said.


Police did not enter the building, but shot tear gas inside.


One of the largest dragnets in recent history, which led police to follow clues across the West and into Mexico, apparently ended just miles from where Dorner's trail went cold last week.


It all began at 12:20 p.m. PT Tuesday, when a maid working at a local resort called 911, saying she and another worker had been tied up and held hostage by Dorner in a cabin, sources said.


The maid told police she was able to escape, but Dorner had stolen one of their cars, which was identified as a purple Nissan.


The San Bernardino Sheriff's Office and state Fish and Wildlife wardens spotted the stolen vehicle and engaged in a shootout with Dorner.


Officials say Dorner crashed the stolen vehicle and fled on foot only to commandeer Rick Heltebrake's white pickup truck on a nearby road a short time later.


"[Dorner] said, 'I don't want to hurt you, just get out and start walking up the road and take your dog with you.' He was calm. I was calm. I would say I was in fear for my life, there was no panic, he told me what to do and I did it," Heltebrake said.


"He was dressed in all camouflage, had a big assault sniper-type rifle. He had a vest on like a ballistic vest," Heltebrake added.


The white pickup truck bought Dorner extra time because police were still looking for the purple Nissan, California Department of Fish and Wildlife Lt. Patrick Foy told "Good Morning America" today.


"We were looking for a purple color Nissan and all of a sudden this white pickup starts coming by in the opposite direction. That's not the suspect's vehicle that we had been looking for," Foy said.


A warden with the Fish and Wildlife department noticed Dorner driving and the pursuit picked up again, Foy said.


"Ultimately, the officer who was driving that vehicle stopped and pulled out his patrol rifle and engaged probably 15 to 20 shots as Dorner was driving away," Foy said.


Dorner then ran on foot to the cabin in which he barricaded himself and got in a shootout with San Bernardino County sheriff's deputies and other officers who arrived.


The two deputies were wounded in the firefight and airlifted to a nearby hospital, where one died, police said. The second deputy was in surgery and was expected to survive, police said.


Police sealed all the roads into the area, preventing cars from entering the area and searching all of those on the way out. All schools were briefly placed on lockdown.


Believing that Dorner might have been watching reports of the standoff, authorities asked media not to broadcast images of police officers' surrounding the cabin, but sent him a message.


"If he's watching this, the message is: Enough is enough," Los Angeles Police Department spokesman Andy Smith told reporters at a news conference Tuesday. "It's time to turn yourself in. It's time to stop the bloodshed. It's time to let this event and let this incident be over."






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China joins U.S., Japan in condemning North Korea nuclear test


SEOUL (Reuters) - North Korea conducted its third nuclear test on Tuesday in defiance of existing U.N. resolutions, drawing condemnation from around the world, including from its only major ally, China, which summoned the North Korean ambassador to protest.


The reclusive North said the test was an act of self-defense against "U.S. hostility" and threatened further, stronger steps if necessary.


It said the test had "greater explosive force" than the 2006 and 2009 tests. Its KCNA news agency said it had used a "miniaturized" and lighter nuclear device, indicating that it had again used plutonium which is more suitable for use as a missile warhead.


North Korean leader Kim Jong-un, the third of his line to rule the country, has presided over two long-range rocket launches and a nuclear test during his first year in power, pursuing policies that have propelled his impoverished and malnourished country closer to becoming a nuclear weapons power.


China, which has shown signs of increasing exasperation with the recent bellicose tone of its neighbor, summoned the North Korean ambassador in Beijing and protested sternly, the Foreign Ministry said.


Foreign Minister Yang Jiechi said China was "strongly dissatisfied and resolutely opposed" to the test and urged North Korea to "stop any rhetoric or acts that could worsen situations and return to the right course of dialogue and consultation as soon as possible".


China is a permanent member of the Security Council.


U.S. President Barack Obama labeled the test a "highly provocative act" that hurt regional stability and pressed for new sanctions.


"The danger posed by North Korea's threatening activities warrants further swift and credible action by the international community. The United States will also continue to take steps necessary to defend ourselves and our allies," Obama said in a statement.


The Security Council will meet on Tuesday to discuss its reaction to the test, although North Korea is already one of the most heavily sanctioned states in the world and has few external economic links that can be targeted.


Japanese Prime Minister Shinzo Abe said the test was a "grave threat" that could not be tolerated. U.N. Secretary-General Ban Ki-moon said the test was a "clear and grave violation" of U.N. Security Council resolutions.


Russian Foreign Minister Sergei Lavrov urged North Korea to abandon its nuclear arms program and return to talks. NATO condemned the test as an "irresponsible act" that posed a grave threat to world peace.


The test "was only the first response we took with maximum restraint", an unnamed spokesman for the North Korean Foreign Ministry, which acts as Pyongyang's official voice to the outside world, said in a statement carried by the official KCNA news agency.


"If the United States continues to come out with hostility and complicates the situation, we will be forced to take stronger, second and third responses in consecutive steps."


North Korea often threatens the United States and its "puppet", South Korea, with destruction in colorful terms.


North Korea told the U.N. disarmament forum in Geneva that it would never bow to resolutions on its nuclear program and that prospects were "gloomy" for the denuclearization of the divided Korean peninsula because of a "hostile" U.S. policy.


South Korea, still technically at war with the North after the 1950-53 civil war ended in a mere truce, also denounced the test.


The magnitude was roughly twice as large as that of 2009, Lassina Zerbo, director of the international data centre division of the Vienna-based Comprehensive Nuclear-Test Ban Treaty Organization, said. The U.S. Geological Survey said that a seismic event measuring 5.1 magnitude had occurred.


"It was confirmed that the nuclear test that was carried out at a high level in a safe and perfect manner using a miniaturized and lighter nuclear device with greater explosive force than previously did not pose any negative impact on the surrounding ecological environment," KCNA said.


Despite China's strong response, the test is likely to be a major embarrassment for Beijing, the North's sole major economic and diplomatic ally.


"The test is hugely insulting to China, which now can be expected to follow through with threats to impose sanctions," said Mark Fitzpatrick of the International Institute for Strategic Studies think tank.


North Korea trumpeted the announcement on its state television channel to patriotic music against the backdrop of an image of its national flag.


It linked the test to its technical prowess in launching a long-range rocket in December, a move that triggered the U.N. sanctions, backed by China, that Pyongyang said prompted it to take Tuesday's action.


The North's ultimate aim, Washington believes, is to design an intercontinental ballistic missile capable of carrying a nuclear warhead that could hit the United States. North Korea says the program is aimed merely at putting satellites in space.


North Korea used plutonium in previous nuclear tests and prior to Tuesday there had been speculation it would use highly enriched uranium so as to conserve its plutonium stocks as testing eats into its limited supply of the material that could be used to construct a nuclear bomb.


"VICIOUS CYCLE"


Despite its three nuclear tests and long-range rocket tests, North Korea is not believed to be close to manufacturing a nuclear missile capable of hitting the United States.


South Korea's Yonhap news agency said Pyongyang had informed China and the United States of its plans to test on Monday, although this could not be confirmed.


When North Korean leader Kim, 30, took power after his father's death in December 2011, there were hopes the he would bring reforms and end Kim Jong-il's "military first" policies.


Instead, the North, whose economy is smaller than it was 20 years ago and where a third of children are believed to be malnourished, appears to be trapped in a cycle of sanctions followed by further provocations.


"The more North Korea shoots missiles, launches satellites or conducts nuclear tests, the more the U.N. Security Council will impose new and more severe sanctions," said Shen Dingli, a professor at Shanghai's Fudan University. "It is an endless, vicious cycle."


But options for the international community appear to be in short supply.


Tuesday's action appeared to have been timed for the run-up to February 16 anniversary celebrations of Kim Jong-il's birthday, as well as to achieved maximum international attention.


Significantly, the test comes at a time of political transition in China, Japan and South Korea, and as Obama begins his second term. He will likely have to tweak his State of the Union address due to be given on Tuesday.


Japanese Prime Minister Shinzo Abe is bedding down a new government and South Korea's new president, Park Geun-hye, prepares to take office on February 25.


China too is in the midst of a once-in-a-decade leadership transition to Xi Jinping, who takes office in March. Both Abe and Xi are staunch nationalists.


The longer-term game plan from Pyongyang may be to restart talks aimed at winning food and financial aid. China urged it to return to the stalled "six-party" talks on its nuclear program, hosted by China and including the two Koreas, the United States, Japan and Russia.


Its puny economy and small diplomatic reach mean the North struggles to win attention on the global stage - other than through nuclear tests and attacks on South Korea, last made in 2010.


"Now the next step for North Korea will be to offer talks... - any form to start up discussion again to bring things to their advantage," said Jeung Young-tae, senior research fellow at the Korea Institute for National Unification in Seoul.


The European Union's foreign policy chief, Catherine Ashton, urged North Korea to refrain from further provocation.


EU member Denmark called on China to step up to the plate and use its influence to rein in its ally.


"This deserves only one thing and that is a one-sided condemnation," said Foreign Minister Villy Sovndal. "North Korea is likely the most horrible country on this planet."


(Additional reporting by Jack Kim, Christine Kim and Jumin Park in SEOUL; Linda Sieg in TOKYO; Louis Charbonneau at the UNITED NATIONS; Fredrik Dahl in VIENNA; Michael Martina and Chen Aizhu in BEIJING; Mette Fraende in COPENHAGEN; Adrian Croft, Charlie Dunmore and Justyna Pawlak in BRUSSELS; Editing by Nick Macfie)



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Nokia slams India tax raid as 'excessive'






MUMBAI: Finnish phone giant Nokia said Tuesday it had protested to the Indian government over a tax raid at one of its factories in South India, slamming the action as "excessive and unacceptable".

Officials last month raided one of Nokia's manufacturing units in the southern city of Chennai as part of an investigation into tax department suspicions that it may have evaded taxes totalling 30 billion rupees ($545 million).

Nokia, which strongly denies evading any taxes, said it had sent a "letter of objection" to Indian tax authorities.

"The actions of the income tax authorities in Chennai are excessive, unacceptable and inconsistent with Indian standards of fair play and governance," Nokia said in a statement.

India - one of the world's fastest growing mobile phone markets - is Nokia's second-largest market, with the Chennai factory producing over 20 different models for the company.

Nokia said it has yet to receive "any official information" on potential tax claims by the Indian government.

"We do not see any merit in any of the claims, and are ready to defend ourselves vigorously," the company said.

Nokia is not the only multinational firm facing a tax probe in India whose tax policies have caused deep concern among international business investors.

Last week, Anglo-Dutch oil major Royal Dutch Shell's Indian unit announced it would contest a local tax claim on a share sale.

British mobile network firm Vodafone is fighting a multi-billion-dollar tax bill from Indian tax authorities over its 2007 purchase of a stake in a domestic telecommunications company.

Vodafone maintains it is not liable to pay any tax on the transaction.

India's finance minister P. Chidambaram has vowed to clamp down on tax evasion to help to lower the country's ballooning fiscal deficit.

At the same time, he has said he wants India to have a "stable tax regime with clarity on tax laws" and for authorities to have a "non-adversarial" approach to tax collection.

- AFP/de



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Apple's Cook calls Einhorn suit 'a silly sideshow'


The recent lawsuit filed by David Einhorn's Greenlight Capital hedge fund is a "silly sideshow" and a waste of time and money, Apple CEO Tim Cook said today.

Cook, speaking during a Goldman Sachs conference in San Francisco, disputed Einhorn's claims that Apple has a Depression-era mindset and said the company makes "bold and ambitious" bets on products while being conservative financially. He noted that Apple invested about $10 billion in capital expenditures last year and it will spend a similar amount this year along with investing in retail stores, distribution, R&D, supply chain, and acquisitions.

"I don't know how a company with a Depression-era mindset would have done all those things," Cook said. "We do have some cash, but it's a privilege to be in this position. ... It's an incredible privilege for us to be in a position where we can serious consider returning additional cash to our shareholders."

He reiterated that Apple's management team and board are in "very active discussions" about ways to give more cash to investors, and it will evaluate all options, including those proposed by Einhorn.

Greenlight last week sued Apple to block a shareholder proposal that would prevent the electronics giant from issuing preferred shares. The hedge fund wants Apple to share more of its cash with investors, and it believes the best way to do so is by distributing preferred stock to current shareholders.

Einhorn described Apple as a phenomenal company but one that's too cautious with its cash. He compared the company to his grandmother who wouldn't even leave messages on his answering machine because she didn't want to get charged for the phone call

"It has sort of a mentality of a depression," Einhorn said during a CNBC interview last week. "In other words, people who have gone through traumas -- and Apple's gone through a couple traumas in its history -- they sometimes feel they can never have enough cash."

Apple fired back, saying that the proposal wouldn't prevent preferred shares and that it would "thoroughly evaluate" Greenlight's plan.

Cook today called Greenlight's proposal "creative" but said the lawsuit Greenlight filed to block Proposal No. 2 in Apple's latest proxy statement is just a silly distraction. Greenlight argues that proposal would prevent Apple from issuing preferred stock, but the company says the provision simply protects shareholder rights by requiring their approval for any share issuance.

Cook added that the serious issue isn't the suit but what Apple's going to do with its cash.

"Frankly, I find it bizarre that we would find ourselves being sued for doing something that's good for shareholders," Cook said. "I think it's a silly sideshow, honestly. And my preference would be that everyone on both sides of the issue would take the money they're spending on this and donate it to a worthy cause. That would be a lot better use of funds."

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Poll: 45% approve of Obama's handling of the economy

By Sarah Dutton, Jennifer De Pinto, Anthony Salvanto, and Fred Backus

As President Barack Obama prepares for the first State of the Union Address of his second term, one which will primarily be focused on economic issues, fewer than half of Americans (45 percent) approve of how he's handling the economy, while more (49 percent) disapprove.

Overall, Mr. Obama is performing better with 52 percent of Americans now approving of the job he is doing as President, while 38 percent disapprove.


Mr. Obama's approval rating has remained fairly constant over the past year, though it rose as high as 57 percent in December. Only 12 percent of Republicans approve; 86 percent of Democrats do. Just under half of independents approve.

On the other hand, the President enjoys particularly strong support for his handling of terrorism - 57 percent approve, while 31 percent disapprove.

Use of Drones

The practice of using unmanned drone aircrafts to attack suspected terrorists in foreign countries - a policy begun by the Bush Administration and expanded under President Obama - enjoys widespread and bipartisan support. Seven in 10 Americans favor using drones to attack suspected terrorists abroad, including most Republicans, Democrats, and independents.

Americans also support a more controversial measure, although in smaller numbers. Forty-nine percent of Americans favor the targeting and killing of U.S. citizens living abroad who are suspected of carrying out terrorist activities against the U.S.; 38 percent oppose that.



Cooperation between Republicans and Democrats?

Looking ahead, Americans are not especially optimistic that there will be more cooperation between Republicans and Democrats in the next four years than there was during the President's first term. Just 17 percent think there will be more cooperation, 22 percent say less, and 58 percent say cooperation will be about the same as it was during the last four years.

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This poll was conducted by telephone from February 6-10, 2013 among 1,148 adults nationwide. Phone numbers were dialed from samples of both standard land-line and cell phones. The error due to sampling for results based on the entire sample could be plus or minus three percentage points. The error for subgroups may be higher. This poll release conforms to the Standards of Disclosure of the National Council on Public Polls.


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Could an African Cardinal Be the Next Pope?





Feb 12, 2013 9:09am


ap cardinal peter turkson ll 130211 wblog Two African Cardinals in the Running to Be Pope

Ghanaian Cardinal Peter Kodwo Appiah Turkson attends a Mass for Pope John Paul II in St. Peter's Basilica at the Vatican, in this April 13, 2005 photo. (Pier Paolo Cito/AP Photo)


By BAZI KANANI and PHOEBE NATANSON


ROME – After Pope Benedict XVI became the first pope in hundreds of years to voluntarily resign, the Roman Catholic Church could be in for another first in recent history—an African pope.


Two African cardinals are rumored to be among the top candidates to succeed Pope Benedict, and many Vatican watchers believe the election of a non-European pope is a very real possibility at a time when the majority of the church’s growth is in the developing world.


Cardinal Peter Turkson, 64, of Ghana, is considered to be near the top of the short list of likely successors.  (British bookmakers offering odds on the next pope have already made Turkson their 3 to 1 favorite.)


After serving for more than 30 years as an ordained priest, Turkson was made a cardinal by Pope John Paul II in 2003.  He currently serves as president of the Vatican’s Council for Justice and Peace.  Colleagues describe him as a “people person” with excellent communication skills.  He is considered a conservative who is unlikely to steer the church in a new direction on issues such as contraception, abortion and gay rights.


Turkson outlined for ABC News Monday the challenge facing Benedict’s successor.


“The new pope has to be very sensitive to the present condition of humanity and yet recognize the task of having to still keep the Gospel in its pure form. That’s a big challenge that we all pray for,” he said.


“I think what we should be looking for, probably what we should be doing rather is recognizing the nature of the church… pray God will provide us with the leadership that can confidently lead the humanity in the church in the year ahead. The challenges are not going to cease. They’re going to be increasing and we need somebody with God’s guidance to get us through all this,” Turkson said.


Cardinal Francis Arinze, 80, of Nigeria is again being mentioned as a possible pope, as he was in 2005 when Pope Benedict was elected.  Arinze served as a priest for 27 years and became one of the world’s youngest bishops before Pope John Paul II elevated him to cardinal in 1985.


He was appointed to lead the Vatican’s Council for Interreligious Dialogue, and colleagues compliment his ability to cooperate with people of other faiths.  Arinze is also considered a conservative.


If the conclave of the College of Cardinals were to choose either Turkson or Arinze, it would be the first selection of an African pope in more than 1,500 years.  Scholars say in the first five centuries of the church there were three popes from North Africa. But the selection of Turkson or Arinze would be the first pope from sub-Saharan Africa and the first-ever black pope.


Vatican watchers also believe it is possible a Latin American pope could be selected.  The cardinals considered leading candidates from Latin America are said to be Leonardo Sandri from Argentina, Oscar Maradiaga from Honduras, Odilo Scherer from Brazil, and Joao Braz de Aviz from Brazil.




SHOWS: World News






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