APNewsBreak: DA investigating Texas cancer agency

AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.

Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.

Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.

His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.

CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote.

The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.

Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.

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Serial Killer 'Broke Own Rule,' Lost Control

Serial killer Israel Keyes' capture was his own undoing. It was the meticulous murderer's loss of control and violation of his own careful rules of murder that ended years of traveling to kill for fun.

When Keyes, 34, approached an Anchorage coffee stand Feb. 1, he told himself that if the person working inside did not have her own car, he would only rob the place and leave.

But when he approached and found teenage barista Samantha Koenig by herself, he couldn't help himself, Keyes told police. He dragged her out, into his own car, raped her, strangled her and was eventually arrested for her murder.

"In prior cases, he had enough self-control to walk away from it, to not commit the kidnapping, to not commit the abduction and with Samantha he didn't," Anchorage homicide Det. Monique Doll said Monday. "He broke his own rule. He had drawn his line in the sand and he couldn't help himself, he said. He took her anyway."

The arrest of Keyes on March 12 ended more than a decade of traveling around the country to find victims to kill or to prepare for future crimes by burying murder kits of weapons, cash and tools to dispose of bodies. Since March he had been slowly telling police about his hidden life and how he operated. But the tale abruptly ended when Keyes committed suicide in his jail cell on Dec. 1.

Police are now left trying to fill in the details of his vicious life. Police believe he killed between 8 and 12 people, including Koenig, but only three victims have been definitively tied to Keyes so far.

Alaska Barista, Alleged Killer Come Face-to-Face: Caught on Tape Watch Video

Serial Killer Sexually Assaulted, Dismembered Alaska Barista Watch Video

Before his jail cell suicide, Keyes gave authorities some clues on how he managed to remain undetected for so long.

"He basically had this rule, this unwritten rule, that he would travel outside and go to great lengths to distance himself from any of his victims," Doll said. "He told us he was losing control. He was losing the massive amount of self-control that he had."

Koenig's abduction broke Keyes' rules on two levels. First, she was in Anchorage, which was also Keyes' home. Second, she did not have her own vehicle.

"Mr. Keyes told us that he was deciding as he walked up the coffee kiosk that if the person working inside did not have a vehicle he was only going to rob the [place] and walk away because he did not want to transport his victim in his vehicle," Doll said.

Keyes quickly discovered that Koenig did not have a car, but when he saw her, his desire to kill overpowered his discipline.

This admission was among many startling revelations Keyes made over about 40 hours of interviews with police in which he discussed topics ranging from torturing animals as a child to the way he fantasized his own death.

"He didn't plan on being taken alive," Anchorage Police Officer Jeff Bell said at the news conference.

Keyes envisioned himself being caught robbing a bank and dying in a police shootout, Bell said. For this reason, he would bring two guns with him to bank robberies--the gun used to rob the bank and a second gun hidden in his coat with 100 rounds for a shootout.

Keyes also talked about his interest in serial killers, though he was adamant about not being called a serial killer.

"He had researched and read other serial killers. He knew a lot about Ted Bundy," Doll said. "He was very careful to say that he had not patterned himself after any other serial killers, that his ideas were his own. He was very clear about that distinction. That mattered a lot to him."

"He never identified himself as a serial killer," she said. "That was one of the things that he wanted very much, as this investigation progressed, to keep from being identified as."

Doll said Keyes was interested in suspense and crime movies and books, which he said he enjoyed because he recognized himself in the characters in a way that he could never talk about.

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Egypt army seeks national unity as crisis mounts

CAIRO (Reuters) - Egypt's army chief called for talks on national unity to end the country's deepening political crisis after a vital loan from the IMF was delayed and thousands of pro- and anti-government demonstrators took to the streets.

The meeting, scheduled for Wednesday afternoon, was called in response to a destabilizing series of protests since President Mohamed Mursi awarded himself sweeping powers on November 22 to push through a new constitution shaped by his Islamist allies in a referendum on Saturday.

"We will not speak about politics nor about the referendum. Tomorrow we will sit together as Egyptians," armed forces chief and Defense Minister Abdel Fattah al-Sisi said at a joint gathering of army and police officials.

An aide said Mursi had supported the call for talks. The Muslim Brotherhood announced it would be there, while the main opposition coalition said it would decide on Wednesday morning whether to attend.

Earlier, the finance minister disclosed that a $4.8 billion International Monetary Fund loan, a cornerstone of Egypt's economic recovery hopes, would be delayed until next month.

Mumtaz al-Said said the delay was intended to allow time to explain a widely criticized package of economic austerity measures to the Egyptian people.

On Monday Muris backed down on planned tax rises, seen as essential for the loan to go ahead, but which the opposition had fiercely criticized.

"Of course the delay will have some economic impact, but we are discussing necessary measures (to address that) during the coming period," Said told Reuters, adding: "I am optimistic ... everything will be well, God willing."

Prime Minister Hisham Kandil said the measures would not hurt the poor. Bread, sugar and rice would not be touched, but prices of cigarettes and cooking oil would go up and fines would be imposed for public littering. In a bid to rebuild consensus, he said there would be a public consultation about the program next week.

In Washington, the IMF said Egypt had asked for the loan to be postponed "in light of the unfolding developments on the ground". The Fund stood ready to consult with Egypt on resuming discussions on the stand-by loan, a spokeswoman said.

GUNMEN OPEN FIRE

On the streets of Cairo, tensions ran high after nine people were hurt when gunmen fired at protesters camping in Tahrir Square, according to witnesses and Egyptian media.

The opposition has called for major protests it hopes will force Mursi to postpone the referendum. Thousands gathered outside the presidential palace, whose walls are scrawled with anti-Mursi graffiti.

A bigger crowd of flag-waving Islamist Mursi backers, who want the vote to go ahead as planned on Saturday, assembled at a nearby mosque, setting the stage for further street confrontations in a crisis that has divided the nation of 83 million.

In Egypt's second city of Alexandria, thousands of rival demonstrators gathered at separate venues. Mursi's backers chanted: "The people want implementation of Islamic law", while his opponents shouted: "The people want to bring down the regime". Others cities also witnessed protests.

The upheaval following the fall of Hosni Mubarak last year is causing concern in the United States, which has given Cairo billions of dollars in military and other aid since Egypt, the Arab world's most populous nation, made peace with Israel in 1979.

State Department spokeswoman Victoria Nuland emphasized "deep concerns" over the situation in Egypt and repeated calls on protesters to demonstrate peacefully and on security forces to act with restraint.

"Key stakeholders in Egypt are raising real and legitimate questions, both about the substance and about the process for moving to a constitutional referendum this weekend," Nuland told a news briefing. She declined to be drawn on whether Washington believed the referendum itself should be postponed.

The turmoil has also put a big strain on the Egyptian economy, sending foreign currency reserves down to about $15 billion, less than half what they were before the revolt two years ago as the government has sought to defend the pound.

"Given the current policy environment, it's hardly a surprise that there's been a delay, but it is imperative that the delay is brief," said Simon Williams, HSBC economist in Dubai. "Egypt urgently needs that IMF accord, both for the funding it brings and the policy anchor it affords."

The IMF deal had been seen as giving a seal of approval to the government's economic plans, vital for drawing more cash into the economy to ease a crushing budget deficit and stave off a balance of payments crisis.

MASKED ATTACKERS

In central Cairo police cars surrounded Tahrir Square, the first time they had appeared in the area since shortly after Mursi awarded himself the sweeping temporary powers in a move that touched off widespread protests.

The attackers, some masked, also threw petrol bombs that started a small fire, witnesses said.

"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today," said John Gerges, a Christian Egyptian who described himself as a socialist.

The latest bout of unrest has so far claimed seven lives in clashes between the Muslim Brotherhood and opponents who gathered outside Mursi's presidential palace.

But the Republican Guard, which protects the palace, has yet to use force to keep protesters away from the building, now ringed with tanks, barbed wire and concrete barricades.

The army has told all sides to resolve their differences through dialogue. For the period of the referendum, the army has been granted powers by Mursi allowing it to arrest civilians.

In statement issued after rights groups criticized the army's new police powers, the presidency said anyone arrested by the military during the referendum would face civil rather than military courts. It said the army's new role would only last until results are declared after Saturday's referendum.

Leftists, liberals and other opposition groups say the hastily arranged constitutional referendum is polarizing the country and could put it in a religious straitjacket.

Islamists have urged their followers to show support for Mursi and for a referendum they feel sure of winning.

(Additional reporting by Tamim Elyan and Edmund Blair in Cairo, and Andrew Quinn in Washington; Writing by Giles Elgood; Editing by Will Waterman and David Stamp)

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Facebook vote ends experiment with democracy

SAN FRANCISCO: Facebook closed the polls Monday on letting democracy rule when it comes to policy changes.

A referendum to strip Facebook users of the power to endorse or reject policy changes through popular vote was opposed by a majority of voters, but not enough people cast ballots to make the results binding.

The referendum was opposed by 87 percent of the 668,125 members who cast ballots, according to a posting on the Facebook governance site.

But Facebook had indicated that if fewer than 30 percent of Facebook's one billion users voted, the California-based firm would be free to go forward with a plan to eliminate the voting structure and integrate Instagram data for ad purposes.

Facebook bought smartphone-picture sharing service Instagram early this year in a cash and stock deal valued at a billion dollars at the time.

A week ago, Facebook asked its members to vote on an overhaul of privacy and other policies in what on Monday became the last binding referendum of its kind at the huge social network.

The social media giant, which has drawn fresh fire from privacy activists for the proposed changes on how it manages users' data, said the poll would be binding only if it gets responses from 30 percent of members -- or 300 million people.

The changes end the voting process, and also would permit sharing of information with its newly acquired photo-sharing service, Instagram.

Additionally, the changes would make it easier for advertisers and others to send messages on Facebook, limiting users' control, according to privacy rights groups.

Activists have raised a ruckus, saying the new policies, if implemented, could violate some laws or Facebook's agreement with US regulators earlier this year after complaints from privacy groups.

The Electronic Privacy Information Center urged Facebook users to vote no, saying the changes "would end user voting, remove spam blocking, and combine personal information from Facebook with data from photo-blogging site Instagram."

Facebook said in a message to users last month that the vote system -- implemented in 2009 -- "resulted in a system that incentivized the quantity of comments over their quality."

Facebook's stock price tumbled after its hotly anticipated market debut in May at $38 a share, in part due to concerns over ad and revenue growth.

However, Facebook shares have rallied in recent weeks and were up slightly to $27.92 on Monday.

-AFP/ac

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Protocol leg-up to MPs in deep freeze?

NEW DELHI: After their plans for beacon lights on vehicles went awry, parliamentarians are unlikely to get an upgrade in the protocol anytime soon.

The Centre has constituted a sub-committee to look into the recommendation that MPs be put at par with 'chief justices of high courts (outside their jurisdiction)' and chairpersons of four statutory commissions/tribunals in the warrant of precedence. The government has, in fact, clubbed various demands for change in protocol for a holistic examination.

According to the home ministry, the recommendation of the parliamentary panel on privileges to put MPs at par with chief justices would require consultation with the Chief Justice of India, as laid out in a key Supreme Court judgment.

The tricky nature of the case, with obvious sensitivities for the judiciary, has resulted in the ministry handing over the issue to a sub-panel headed by the home secretary.

Calling it a "delicate balance" between various dignitaries, sources said the alteration of protocol requires thorough examination and the sub-panel's recommendation will be considered by the 'committee on table of precedence' that is in place in the home ministry to decide on the issue. The order of precedence is followed for official courtesies like seating arrangement in official functions.

The decision for minute study of the issue is being interpreted as government putting the matter in cold storage. After the refusal to give beacons on cars, this is the second blow to Parliament members anxious for an elevation in protocol.

The MPs are placed 21st in the protocol list, below ambassadors, certain officials and chairpersons of statutory bodies. The privileges panel said the members be put at par with 'chief justices of high courts outside their jurisdiction', arguing the list does not reflect the correct standing of responsibilities.

The pause in promotion in protocol follows Congress chief Sonia Gandhi's decision to nix the plan to allow parliamentarians to use beacon lights on cars. The diktat from the UPA chief scuppered the informally sewn agreement between representatives of MPs and the home ministry.

The home ministry had agreed to permit MPs to use beacons with the exception of VIP area of Delhi (New Delhi region), as first reported by TOI.

However, Sonia told a Congress parliamentary party meeting that the move would be unpopular with people. "As Congress president, I cannot accept this," she told the MPs.

With beacons gone, the MPs have been banking on a leg-up in protocol.

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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New Evidence Suggests Biblical Flood Happened

The story of Noah's Ark and the Great Flood is one of the most famous from the Bible, and now an acclaimed underwater archaeologist thinks he has found proof that the biblical flood was actually based on real events.

In an interview with Christiane Amanpour for ABC News, Robert Ballard, one of the world's best-known underwater archaeologists, talked about his findings. His team is probing the depths of the Black Sea off the coast of Turkey in search of traces of an ancient civilization hidden underwater since the time of Noah.

Tune in to Christiane Amanpour's two-part ABC News special, "Back to the Beginning," which explores the history of the Bible from Genesis to Jesus. Part one airs on Friday, Dec. 21 and part two on Friday, Dec. 28, both starting at 9 p.m. ET on ABC. See photos from her journey HERE

Ballard's track record for finding the impossible is well known. In 1985, using a robotic submersible equipped with remote-controlled cameras, Ballard and his crew hunted down the world's most famous shipwreck, the Titanic.

Now Ballard is using even more advanced robotic technology to travel farther back in time. He is on a marine archeological mission that might support the story of Noah. He said some 12,000 years ago, much of the world was covered in ice.

"Where I live in Connecticut was ice a mile above my house, all the way back to the North Pole, about 15 million kilometers, that's a big ice cube," he said. "But then it started to melt. We're talking about the floods of our living history."

The water from the melting glaciers began to rush toward the world's oceans, Ballard said, causing floods all around the world.

"The questions is, was there a mother of all floods," Ballard said.

According to a controversial theory proposed by two Columbia University scientists, there really was one in the Black Sea region. They believe that the now-salty Black Sea was once an isolated freshwater lake surrounded by farmland, until it was flooded by an enormous wall of water from the rising Mediterranean Sea. The force of the water was two hundred times that of Niagara Falls, sweeping away everything in its path.

Fascinated by the idea, Ballard and his team decided to investigate.

"We went in there to look for the flood," he said. "Not just a slow moving, advancing rise of sea level, but a really big flood that then stayed... The land that went under stayed under."

Four hundred feet below the surface, they unearthed an ancient shoreline, proof to Ballard that a catastrophic event did happen in the Black Sea. By carbon dating shells found along the shoreline, Ballard said he believes they have established a timeline for that catastrophic event, which he estimates happened around 5,000 BC. Some experts believe this was around the time when Noah's flood could have occurred.

"It probably was a bad day," Ballard said. "At some magic moment, it broke through and flooded this place violently, and a lot of real estate, 150,000 square kilometers of land, went under."

The theory goes on to suggest that the story of this traumatic event, seared into the collective memory of the survivors, was passed down from generation to generation and eventually inspired the biblical account of Noah.

Noah is described in the Bible as a family man, a father of three, who is about to celebrate his 600th birthday.

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Egypt army given temporary power to arrest civilians

CAIRO (Reuters) - Egypt's Islamist president has given the army temporary power to arrest civilians during a constitutional referendum he is determined to push through despite the risk of bloodshed between his supporters and opponents accusing him of a power grab.

Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and their critics besieging Mohamed Mursi's graffiti-daubed presidential palace. Both sides plan mass rallies on Tuesday.

The elite Republican Guard has yet to use force to keep protesters away from the palace, which it ringed with tanks, barbed wire and concrete barricades after last week's violence.

Mursi, bruised by calls for his downfall, has rescinded a November 22 decree giving him wide powers but is going ahead with a referendum on Saturday on a constitution seen by his supporters as a triumph for democracy and by many liberals as a betrayal.

A decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians and refer them to prosecutors until the announcement of the results of the referendum, which the protesters want cancelled.

Despite its limited nature, the edict will revive memories of Hosni Mubarak's emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure introduced by a civilian government would have a short shelf-life.

"The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only," the military source said.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army's assistance.

"The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over," Ali said.

Protests and violence have racked Egypt since Mursi decreed himself extraordinary powers he said were needed to speed up a troubled transition since Mubarak's fall 22 months ago.

The Muslim Brotherhood has voiced anger at the Interior Ministry's failure to prevent protesters setting fire to its headquarters in Cairo and 28 of its offices elsewhere.

Critics say the draft law puts Egypt in a religious straitjacket. Whatever the outcome of the referendum, the crisis has polarized the country and presages more instability at a time when Mursi is trying to steady a fragile economy.

On Monday, he suspended planned tax increases only hours after the measures had been formally decreed, casting doubts on the government's ability to push through tough economic reforms that form part of a proposed $4.8 billion IMF loan agreement.

"VIOLENT CONFRONTATION"

Rejecting the referendum plan, opposition groups have called for mass protests on Tuesday, saying Mursi's eagerness to push the constitution through could lead to "violent confrontation".

Islamists have urged their followers to turn out "in millions" the same day in a show of support for the president and for a referendum they feel sure of winning with their loyal base and perhaps with the votes of Egyptians weary of turmoil.

The opposition National Salvation Front, led by liberals such as Mohamed ElBaradei and Amr Moussa, as well as leftist firebrand Hamdeen Sabahy, has yet to call directly for a boycott of the referendum or to urge their supporters to vote "no".

Instead it is contesting the legitimacy of the vote and of the whole process by which the constitution was drafted in an Islamist-led assembly from which their representatives withdrew.

The opposition says the document fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill-equipped to deal with a looming economic crisis.

"Inevitability of referendum deepens divisions," was the headline in Al-Gomhuriya newspaper on Monday. Al Ahram daily wrote: "Political forces split over referendum and new decree."

Mursi issued another decree on Saturday to supersede his November 22 measure putting his own decisions beyond legal challenge until a new constitution and parliament are in place.

While he gave up extra powers as a sop to his opponents, the decisions already taken under them, such as the dismissal of a prosecutor-general appointed by Mubarak, remain intact.

"UNWELCOME" CHOICE

Lamia Kamel, a spokeswoman for former Arab League chief Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a "no" vote.

"Both paths are unwelcome because they really don't want the referendum at all," she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.

A spokeswoman for ElBaradei, former head of the U.N. nuclear watchdog, said: "We do not acknowledge the referendum. The aim is to change the decision and postpone it."

Mahmoud Ghozlan, the Muslim Brotherhood's spokesman, said the opposition could stage protests, but should keep the peace.

"They are free to boycott, participate or say no, they can do what they want. The important thing is that it remains in a peaceful context to preserve the country's safety and security."

The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a "dark tunnel".

A military source said the declaration read on state media did not herald a move by the army to retake control of Egypt, which it relinquished in June after managing the transition from Mubarak's 30 years of military-backed one-man rule.

The draft constitution sets up a national defense council, in which generals will form a majority, and gives civilians some scrutiny over the army - although not enough for critics.

In August Mursi stripped the generals of sweeping powers they had grabbed when he was elected two months earlier, but has since repeatedly paid tribute to the military in public.

So far the army and police have taken a relatively passive role in the protests roiling the most populous Arab nation.

(Additional reporting by Edmund Blair and Yasmine Saleh; editing by Philippa Fletcher)

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Italy faces vote as Monti leaves, Berlusconi returns

ROME: Italian officials on Sunday readied for early elections after Prime Minister Mario Monti said he would soon resign and his predecessor Silvio Berlusconi announced he would run for the top job for the sixth time in two decades.

Monti on Saturday said he would step down as soon as parliament approved next year's budget, which means elections could now be held as early as February -- well before the government's mandate runs out in late April.

"I have matured in my conviction that we could not continue like this any longer," Monti was quoted as saying in an interview with top-selling daily Corriere della Sera, a day after his dramatic move.

Monti said he made his decision after Berlusconi's People of Freedom (PDL) party withdrew its support for him last week.

Party chief Angelino Alfano told parliament on Friday that Italy's debt, unemployment and tax rates had risen, while the economy had plunged since Monti had taken over in November 2011. Monti leads a non-elected cabinet of technocrats.

Alfano went back on the offensive Sunday, saying Monti's government had made "grave errors" and that the PDL was a "responsible force" for Italy.

"We wanted to signal Italians' unease with his economic policies," Alfano said.

Asked about several items of legislation still before parliament, Alfano said his party would only back the budget and a decree to keep open a troubled steel mill in southern Italy that employs thousands of people.

Investors have reacted nervously since the PDL abstained from two confidence votes on the government on Thursday: the stock market plunged and the differential, or "spread", between Italian and benchmark German bonds widened.

Following talks between Monti and President Giorgio Napolitano on Saturday, the president's office said Monti "does not think it possible to continue his mandate and consequently made clear his intention to present his resignation".

Analysts said Monti's decision to speed up the election could also be a way for him to prepare his own entry into politics after three-time prime minister Berlusconi announced his dramatic return.

Berlusconi's decision comes despite a tax fraud conviction earlier this year and an ongoing trial for having sex with an underage 17-year-old prostitute and abusing his powers when premier.

"I am running to win," he said on Saturday, after declaring in October that he would not run.

Most recent polls suggest Berlusconi's party is running in second or even third place, with the main centre-left Democratic Party led by Pier Luigi Bersani expected to win the elections.

Erik Nielsen, chief economist at UniCredit, said he was "not seriously worried" about the prospects for Italy and predicted either a Bersani-led coalition or a new Monti government after the election.

More than three million centre-left voters took to the polls earlier this month to nominate Bersani as their candidate, a former communist with liberal reformist credentials and experience in government.

Some polls put in second place the Five Star Movement, an Internet-based group led by former comedian and populist blogger Beppe Grillo.

In a blog post on Sunday, Grillo criticised Monti saying he was "leaving a country on its knees".

"Watch out for the anger of Italians," he warned.

Primaries held by the movement this month picked dozens of mostly young parliamentary candidates in their 20s and 30s who are campaigning on a series of grassroots issues and environmental causes.

The PDL party had also been due to hold primaries later this month but was forced to cancel them after Berlusconi announced his surprise return.

The party has been riven by infighting ever since Berlusconi stepped down. It has also been hit by a series of scandals over abuse of public funds.

Experts say a campaign against some of Monti's budget cuts and austerity measures could nevertheless play well, as many Italians are feeling the pinch.

Monti's supporters say his administration pulled Italy back from bankruptcy and launched crucial liberal economic reforms, implementing tough but necessary austerity to sort out the public finances after years of mismanagement.

In an interview with Il Sole 24 Ore business daily on Sunday, European Commission President Jose Manuel Barroso cautioned Italy against turning back the clock.

Barroso praised Monti for "putting public finances back in order and reforming the economy and for his role in the European debate.

"Italians should not fall under the illusion that there are quick or magic solutions," he told the paper.

"The next elections should not become a pretext to put in doubt the necessity of the measures approved until now."

On the sidelines of an economic conference in Cannes, Monti said on Saturday: "I am convinced that whatever government succeeds me, the wisdom of the men and women in Italian politics will prevail.

"I am sure there will not be an attempt to destroy what we have been able to do to secure Italy's public finances," he added. There was still an "enormous amount to do for growth."

-AFP/ac

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India misguided, paranoid over China: Guha

Shreya Roy Chowdhury, TNN Dec 8, 2012, 06.12AM IST

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

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