Egyptians vote on divisive constitution

CAIRO/ALEXANDRIA (Reuters) - Egyptians queued in long lines on Saturday to vote on a constitution promoted by its Islamist backers as the way out of a political crisis and rejected by opponents as a recipe for further divisions in the Arab world's biggest nation.

Soldiers joined police to secure the referendum after deadly protests during the buildup. Street brawls erupted again on Friday in Alexandria, Egypt's second city, but voting proceeded quietly there, with no reports of violence elsewhere.

President Mohamed Mursi provoked angry demonstrations when he issued a decree last month expanding his powers and then fast-tracked the draft constitution through an assembly dominated by his Muslim Brotherhood group and its allies. At least eight people were killed in clashes last week outside the presidential palace.

His liberal, secular and Christian opponents says the constitution is too Islamist and tramples on minority rights. Mursi's supporters say the charter is needed if progress is to be made towards democracy nearly two years after the fall of military-backed strongman Hosni Mubarak.

"The sheikhs (preachers) told us to say 'yes' and I have read the constitution and I liked it," said Adel Imam, a 53-year-old queuing to vote in a Cairo suburb. "The country will move on."

Opposition politician and Nobel Peace Prize laureate Mohamed ElBaradei wrote on Twitter: "Adoption of (a) divisive draft constitution that violates universal values and freedoms is a sure way to institutionalize instability and turmoil."

Official results will not be announced until after a second round of voting next Saturday. But partial results and unofficial tallies are likely to emerge soon after the first round, giving some idea of the outcome.

In order to pass, the constitution must be approved by more than 50 percent of voters who cast ballots. A little more than half of Egypt's electorate of 51 million are eligible to vote in the first round in Cairo and other cities.

Rights groups reported some abuses, such as polling stations opening late, officials telling people to vote "yes", bribery and intimidation.

But Gamal Eid, head of the Arab Network for Human Rights Information, which is monitoring the vote, said nothing reported so far was serious enough to invalidate the referendum.

"Until now, there is no talk of vote rigging," said Eid.

TRANSITION

Christians, making up about 10 percent of Egypt's 83 million people and who have long grumbled of discrimination, were among those waiting at a polling station in Alexandria to oppose the basic law. They fear Islamists, long repressed by Mubarak, will restrict social and other freedoms.

"I voted 'no' to the constitution out of patriotic duty," said Michael Nour, a 45-year-old Christian teacher in Alexandria. "The constitution does not represent all Egyptians."

Howaida Abdel Azeem, a post office employee, said: "I said 'yes' because I want the destruction the country is living through to be over and the crisis to pass, and then we can fix things later."

Islamists are counting on their disciplined ranks of supporters and the many Egyptians who may fall into line in the hope of ending turmoil that has hammered the economy and sent Egypt's pound to eight-year lows against the dollar.

Mursi was among the early voters after polls opened at 8 a.m. (1:00 a.m. Eastern Time). He was shown on television casting his ballot shielded by a screen and then dipping his finger in ink - a measure to prevent people voting twice.

Turnout was high enough for voting on Saturday to be extended by four hours to 11 p.m. (4 p.m. Eastern Time). One senior official on the committee overseeing the referendum said Saturday's vote could continue on Sunday if crowds were too heavy to allow everyone to cast ballots in one day. Voting for Egyptians abroad that began on Wednesday has been extended to Monday, the state news agency reported.

After weeks of turbulence, there has been limited public campaigning. Opposition politicians and parties, beaten in two elections since Mubarak's overthrow, only announced on Wednesday that they backed a "no" vote instead of a boycott.

TWO DAYS

The second round will be held in other regions on December 22 because there are not enough judges willing to monitor all polling stations after some said they would boycott the vote.

Egyptians are being asked to accept or reject a constitution that must be in place before a parliamentary election can be held next year to replace an Islamist-led parliament dissolved in June. Many hope this will lead Egypt towards stability.

If the constitution is voted down, a new assembly will have to be formed to draft a revised version, a process that could take up to nine months.

The army has deployed about 120,000 troops and 6,000 tanks and armored vehicles to protect polling stations and other government buildings. While the military backed Mubarak and his predecessors, it has not intervened in the present crisis.

(Writing by Edmund Blair and Giles Elgood; Editing by Tom Pfeiffer)

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Football: Runaway Bayern go 12 clear despite Gladbach draw

BERLIN: Runaway leaders Bayern Munich needed a second-half equaliser to snatch a point in a 1-1 draw at home to Borussia Moenchengladbach on Friday in their final Bundesliga match of 2012.

The draw left Bayern 12 points clear of the chasing pack, who are all in action during the rest of the weekend's programme, while 'Gladbach move up to sixth.

"The team fought hard, they gave everything and we're happy to take that point at home," said Bayern's director of sport Matthias Sammer.

Having already opened the season with a record eight straight wins, Bayern are hoping to finish the weekend with another achievement as they look to break Borussia Dortmund's record 10-point lead at the halfway stage.

Bayern hammered 'Gladbach's goal, enjoying 65 percent ball possession, and finished with 25 shots on goal, compared to their guests' five.

After Gladbach claimed a half-time lead through a Thorben Marx penalty, Bayern battered their visitors' goal and the torrent of chances finally paid off when Swiss star Xherdan Shaqiri equalised with half an hour left.

Gladbach took the lead when Bayern defender Jerome Boateng leapt to block a cross from midfielder Tolga Cigerci and the ball struck his hand.

Referee Tobias Welz immediately pointed to the spot, despite furious protestations from Germany star Boateng, and Marx slammed home the 21st-minute penalty.

"I don't know how the referee could class that as a penalty," fumed Boateng.

"I seriously don't think it was justified.

"I think we deserved to win."

The goal came against the run of play and took the wind out of Bayern's sails and it looked like history was about to repeat itself after Gladbach had poached a 1-0 win in Munich on their previous visit in August 2011.

Things refused to go the hosts' way in the first-half as defender Dante headed over while winger Franck Ribery had a shot saved.

Adding injury to insult, defensive midfielder Javi Martinez went off with a facial injury from a stray elbow as Gladbach goalkeeper Marc-Andre ter Stegen pulled off a string of superb saves.

Bayern attacked in waves in the first-half with 11 shots on target compared to the guests' single attempt.

Only another fine ter Stegen save denied Bastian Schweinsteiger early in the second-half, but the Gladbach defence was finally beaten following a mistake by Cigerci.

His badly-timed pass was snapped up by Shaqiri, who levelled on 59 minutes.

Bayern kept up the pressure as the minutes ticked down, but Gladbach's defence held firm, despite Bayern's 14 corners, to leave Lucien Favre's team unbeaten in their last seven games.

Leverkusen can trim Bayern's lead back to nine points if they win at home to Hamburg on Saturday.

-AFP/ac

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Indo-US `bonhomie’ strains bilateral ties with Iran

NEW DELHI: As Iran reached a deal with the International Atomic Energy Agency ( IAEA) for the next round of nuclear talks to be held on January 16, Tehran said India was leaning too close to the US for bilateral ties to remain untouched.

"We have long and friendly relations with India. We can continue to be friends. We can try to materialize this potential. But if India keeps moving towards Washington, then there will be some limitations for us," Mostafa Dolatyar, head of Iran's Institute of Political and International Studies and a member of Iran's nuclear negotiating team, told journalists. However, he added that Tehran understood New Delhi's constraints and left it to India to define its relationship with Iran. "India is a developing country. We know their limitations. We are not living in Mars. We are living on earth."

Dolatyar was particularly critical of India not utilizing adequately the Iranian market, when even the US could do so despite its sanctions. "When American products can find their way into our markets, why can't India products. They (India) have to find a way. It is not the fault of the Iranian government because despite sanctions American products continue to be sold in Iran," he said.

Iran was also supportive of India's role in Afghanistan, but was clear that the US presence could be a negative. "If India wants to do something substantive we are fine with it because Afghanistan is in India's immediate neighborhood. But we have doubts as far as American involvement is concerned," he said.

On Thursday, foreign minister Salman Khurshid said India would "review" its oil imports from Iran in new year. India has substantially reduced its oil imports from Iran, which is down from 16% to 10% in a couple of years. New Delhi also recently got an extension of a waiver by the US administration.

"I think we are well within the structure of US waiver. The bottom line of the conditions of the waiver has been satisfied which is you should not increase dependency on it," the minister said on the sidelines of a CII seminar.

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APNewsBreak: Texas cancer probe draws NCI scrutiny

AUSTIN, Texas (AP) — The National Cancer Institute confirmed Friday that federal officials are taking a closer look at a troubled $3 billion cancer-fighting effort in Texas that is under a criminal investigation over a lucrative taxpayer-funded grant awarded by the state agency.

The Cancer Prevention and Research Institute of Texas has coveted status as an NCI-approved funding entity — an exclusive group headlined by the nation's most prominent cancer organizations. The list is fewer than two dozen and includes the American Cancer Society, Susan G. Komen for the Cure and federal entities like the Center for Disease Control and Prevention.

The designation is a federal seal-of-approval that signals high peer review standards and conflict of interest policies. Yearlong turmoil within the Texas institute, or CPRIT, reached a new peak this week when the agency's beleaguered chief executive asked to resign and prosecutors opened cases following an $11 million grant to a private company that was revealed to have bypassed an independent review.

NCI spokeswoman Aleea Farrakh Khan told The Associated Press that officials are "evaluating recent events" at CPRIT. She said officials have not made decisions or contacted the agency directly.

Members of CPRIT's governing board did not immediately return an email seeking comment.

NCI designation is not required for CPRIT to continue running the nation's second-largest pot of cancer research dollars, Khan said. But jeopardizing that status — and especially losing it — would be a severe blow to CPRIT's reputation, which already has been battered by sweeping resignations, internal accusations of politics trumping science and now a criminal investigation.

A recent internal audit at CPRIT discovered an $11 million funding request from Dallas-based Peloton Therapeutics was approved without the agency ever scrutinizing the proposal's merits. The revelation came only months after two Nobel laureates and other top scientists left the agency in protest over a $20 million grant some accused of being rushed to approval without a proper peer review.

While CPRIT is funded by taxpayers, donors to cancer nonprofits might look to an NCI designation for assurance that their money is in good hands.

"It says, 'If I'm donating money to this agency, if NCI is approving them, that means NCI says it's handling its money well,'" Khan said.

Khan added that CPRIT's inclusion on the list does not mean all of its funding mechanisms are NCI-approved.

An entire page of CPRIT's website is devoted to boasting its NCI designation. The agency says the status is important because it means cancer centers in Texas seeking its own NCI designation — so as to reassure patients or bolster recruitment — can include CPRIT research dollars in their calculations to maintain levels needed to be NCI approved.

"This enhances Texas' ability to leverage additional federal funding for cancer research and raises Texas' profile as a center for cancer research," according to the website.

Executive Director Bill Gimson submitted his resignation letter Tuesday but offered to stay on through January. He has described Peloton's improper funding as an honest mistake and said no one associated with CPRIT stood to personally profit from the company's award.

Prosecutors have not made any specific criminal allegations. Launching separate investigations into CPRIT are the Texas attorney general's office and the Travis County district attorney's public integrity unit, which investigates criminal misconduct within state government.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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20 Children Killed at Conn. Grade School, 7 Adults

Twenty children died today when a heavily armed man invaded a Newtown, Conn., elementary school, killing his mother and spraying the school with bullets.

The gunman, identified as Adam Lanza, 20, was killed inside of the school.

Lt. Paul Vance said 18 children died in the school and two more died later in a hospital. Six adults were also slain, bringing the total to 26.

In addition to the casualties at the school, a body was also found in the shooter's home, officials said.

In the early confusion surrounding the investigation, federal sources initially identified the suspect as Adam's older brother Ryan Lanza, 24.

LIVE UPDATES: Newtown, Conn., School Shooting

Sources said the shooter was armed with a Glock semi automatic handgun and a Sig Sauer semi automatic handgun, law enforcement sources told ABC News. Additionally, .223 caliber shell casings--a rifle caliber--were also found at the scene. He was wearing a bullet-proof vest when he opened fire in the elementary school.

Among the dead in the school was the gunman's mother, who was a kindergarten teacher, sources told ABC News. Many of the students slain were in class with her when she was killed.

First grade teacher Kaitlin Roig, 29, locked her 14 students in a class bathroom and listened to "tons of shooting" until police came to help.

"It was horrific," Roig said. "I thought we were going to die."

She said that the terrified kids were saying, "I just want Christmas…I don't want to die. I just want to have Christmas."

Shannon Hicks/The Newtown Bee

Connecticut Shooting: 27 Dead at Sandy Hook Elementary School Watch Video

Connecticut School Shooting: White House Response Watch Video

Connecticut School Shooting: Student Describes Scene Watch Video

A tearful President Obama said there's "not a parent in America who doesn't feel the overwhelming grief that I do."

The president had to pause to compose himself after saying these were "beautiful little kids between the ages of 5 and 10." As he continued with his statement, Obama wiped away tears from each eye.

He has ordered flags flown as half staff.

The alert at the school ended when Vance announced, "The shooter is deceased inside the building. The public is not in danger."

The massacre prompted the town of Newtown to lock down all its schools and draw SWAT teams to the school, authorities said today. Authorities initially believed that there were two gunmen and were searching cars around the school, but authorities do not appear to be looking for another gunman.

It's unclear how many people have been shot, but 27 people, mostly children, are dead, multiple federal and state sources tell ABC News. That number could rise, officials said.

CLICK HERE for more photos from the scene.

It is the second worst mass shooting in U.S. history, exceeded only by the Virginia Tech shooting in 2007 when 32 were killed before the shooter turned the gun on himself. Today's carnage exceeds the 1999 Columbine High School shooting in which 13 died and 24 were injured.

The Newtown shooting comes three days after masked gunman Jacob Roberts opened fire in a busy Oregon mall, killing two before turning the gun on himself.

Today's shooting occurred at the Sandy Hook Elementary School, which includes 450 students in grades K-4. The town is located about 12 miles east of Danbury.

State Police received the first 911 call at 9:41 a.m. and immediately began sending emergency units from the western part of the state. Initial 911 calls stated that multiple students were trapped in a classroom, possibly with a gunman, according to a Connecticut State Police source.

Lt. Paul Vance said that on-duty and off-duty officers swarmed to the school and quickly checked "every door, every crack, every crevice" in the building looking for the gunman and evacuating children.

A photo from the scene shows a line of distressed children being led out of the school.

Three patients have been taken to Danbury Hospital, which is also on lockdown, according to the hospital's Facebook page.

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U.S., rebels urge gloomy Moscow to help oust Assad

BEIRUT (Reuters) - Syria's rebel leadership and the United States seized on Russian pessimism over President Bashar al-Assad's future to urge Moscow to help push its ally into ceding power and end the battles closing in around his capital.

"We want to commend the Russian government for finally waking up to the reality and acknowledging that the regime's days are numbered," the U.S. State Department spokeswoman said after a senior Kremlin envoy conceded publicly on Thursday that Assad's opponents could win the 20-month-old civil war.

"The question now is, will the Russian government join those of us in the international community who are working with the opposition to try to have a smooth democratic transition?" U.S. spokeswoman Victoria Nuland added in Washington.

In Marrakech, where his new coalition won recognition from other international powers as the legitimate leadership of Syria, rebel political leader Mouaz al-Khatib said he believed Russia, ally and arms supplier to the Assad dynasty since Soviet times, was looking for ways out of its support for a lost cause.

"I believe that the Russians have woken up and are sensing that they have implicated themselves with this regime, but they don't know how to get out," al-Khatib told Reuters. He held them "particularly responsible" for helping Assad with arms but said Moscow need not "lose everything" in Syria if it changed tack.

Under President Vladimir Putin, wary since last year's Libyan war of what Russia sees as a Western drive to use the United Nations to overthrow national leaders it dislikes, Russia has blocked U.N. efforts to squeeze Assad, who has also had strong support from his long-time sponsor Iran.

But Mikhail Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, was quoted as saying in Moscow: "One must look the facts in the face."

"Unfortunately, the victory of the Syrian opposition cannot be ruled out." The Syrian government, he said, was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.

Nuland said Bogdanov's comments demonstrated that Moscow now "sees the writing on the wall" on Syria and said Russia should now rally behind U.N. efforts to prevent a wider bloodbath.

"They can withdraw any residual support for the Assad regime, whether it is material support (or) financial support," she said. "They can also help us to identify people who might be willing, inside of Syria, to work on a transitional structure."

DIPLOMACY

International envoy Lakhdar Brahimi, who has met Russian and U.S. officials twice in the past week, is seeking a solution based on an agreement reached in Geneva in June that called for the creation of a transitional government in Syria.

But Russia has repeated warnings that recognition of al-Khatib's coalition, notably by the United States, is undermining diplomacy, and rejected U.S. contentions that the Geneva agreement sent a clear message that Assad should step down.

Nuland said the Brahimi meetings could lay the framework for a political structure to follow Assad:

"We've said all along to the Russians that we are concerned that the longer that this goes on, and the longer it takes us to get to an alternative political path for Syria, the only path is going to be the military one and that is just going to bring more violence.

"We all ought to be working together."

Bogdanov, whose government has suggested that Assad himself should be allowed to see through a transition he has promised, suggested the rebels and their allies were set on a military solution and he gave little hint of detente with Washington.

"The fighting will become even more intense and (Syria) will lose tens of thousands and, perhaps, hundreds of thousands of civilians," Bogdanov was quoted as saying. "If such a price for the removal of the president seems acceptable to you, what can we do? We, of course, consider it absolutely unacceptable."

The head of NATO, Anders Fogh Rasmussen, said elsewhere: "I think the regime in Damascus is approaching collapse."

A U.S. official said: "Assad probably still believes that Syria is his and illusions can die hard. But Assad and those closest to him have got to be feeling the psychological strain of fighting a long war that is not going their way."

DAMASCUS BATTLES

But Al-Khatib, who played down Western concerns of sectarian Sunni Islamists in rebel ranks, warned that the fighting was far from over, even as it has begun to rattle the heart of Assad's power in Damascus. On Wednesday, a car bomb killed at least 16 people in a nearby town which is home to many military families.

"The noose is tightening around the regime," al-Khatib said.

"(But) the regime still has power. People think that the regime is finished, but it still has power left, but it is demoralized and however long it lasted its end is clear."

Day and night, Damascenes can hear the thunderous sound of bombardment aimed at rebel-held and contested neighborhoods.

The city's streets have now turned into a labyrinth of checkpoints and road blocks, with several major roads permanently closed off to traffic by concrete barriers.

"We escape from one place and trouble follows," said one grandmother, Um Hassan, as she described to Reuters her family's flight from one neighborhood to another as fighting seeps into the capital. "I don't know where we can keep running to."

Nonetheless, al-Khatib played down demands for their allies to provide heavier weaponry - a request long resisted by governments wary of anti-aircraft missiles and other hardware reaching Islamist rebels who might turn them against the West.

"The Syrian people ... no longer need international forces to protect them," he said, not specifying whether he meant a no-fly zone, arms supplies or other military support.

The opposition chief said he was willing to listen to proposals for Assad to escape with his life - "The best thing is that he steps down and stops drinking the blood of the Syrian people" - and outlined three scenarios for a change of power:

Al-Khatib ruled out the Russian proposal suggesting Assad hand over power to a transitional government while remaining president, saying it was "disgraceful for a slaughtered nation to accept to have a killer and criminal at its head".

The British-based Syrian Observatory said war planes bombed rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.

Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days. The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels.

At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.

(Additional reporting by Steve Gutterman in Moscow and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Michael Roddy) For an interactive look at the uprising in Syria, please click on http://link.reuters.com/rut37s

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Tehran hosts UN nuclear team talks with Iran on Jan 16

TEHRAN: Iran and the UN atomic watchdog, following a day of discussions on the Islamic republic's controversial nuclear programme, agreed on Thursday to resume negotiations in Tehran on January 16 , a senior Iranian official said.

"We agreed to have the next round of talks on January 16 in Tehran," said Ali Asghar Soltanieh, Iran's representative to the International Atomic Energy Agency was quoted by media as saying.

The one day of talks held on Thursday was "constructive, positive, and good progress has been made," he added.

No other information came out of the talks, which ran from the morning late into the evening.

The agency wants to inspect Parchin, a restricted military complex near Tehran where the IAEA suspects experiments with explosives capable of triggering a nuclear weapon could have been carried out.

But the media did not say whether that request was granted.

In Vienna, the IAEA had no comment, but chief inspector Herman Nackaerts, who was leading the seven-strong team, was expected to make a statement on his return there on Friday morning.

The IAEA says the talks aim to reach agreement on a "structured approach" for Tehran to address allegations of weaponisation and for the watchdog to gain broader access to Iran's nuclear sites and people working in the programme.

"We also hope that Iran will allow us to go to the site of Parchin, and if Iran would grant us access we would welcome that chance and we are ready to go," Nackaerts told reporters in Vienna on Wednesday before leaving for Iran.

The IAEA, which visited Parchin twice in 2005, accuses Tehran of carrying out clean-up operations at the base to undermine its efforts to probe possible past nuclear weapons research work. Iran denies that.

Thursday's talks were the latest in a string of fruitless meetings this year between Iran and the IAEA, with the latest in August in the Austrian capital.

One diplomat in Vienna said the team in Tehran is larger than in past visits in February and in May, and now included two "technical experts" who could conduct verification work at Parchin -- if invited to do so.

Iran denies seeking or ever having sought an atomic bomb and has refused the IAEA access to Parchin, saying that as a non-nuclear site the agency has no right to conduct inspections there.

Foreign ministry spokesman Ramin Mehmanparast said on Tuesday the visit would focus on discussions regarding "Iran's nuclear rights as well as its peaceful nuclear activities."

But "certain issues that have possibly become a source of concern for (IAEA) officials can also be discussed," he said, without being more specific.

Iran, under international sanctions, rejects as baseless suspicions by Western governments and echoed by the IAEA that it intends to develop a nuclear weapons capability under the guise of its energy programme.

It stresses that IAEA demands to examine Parchin exceed Iran's obligations under the Nuclear Non-Proliferation Treaty (NPT), to which it is a signatory.

The inspectors' visit also came against the backdrop of renewed efforts by world powers engaging Iran over its nuclear programme to discuss possible dates and venues for a new meeting to resolve the dispute.

The P5 + 1 -- the US, Russia, China, France and Britain plus Germany -- are hoping to agree with Iran "rapidly" on a new meeting, a spokesman for EU foreign policy chief Catherine Ashton said in Brussels.

-AFP/ac

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Railways cuts plan outlay by Rs 4,000 crore for 2012-13

NEW DELHI: Cash-strapped Railways has scaled down its plan outlay by around Rs 4,000 crore for the current fiscal, following failure to raise the funds internally. In its budget for 2012-13, Railways had proposed its highest ever plan outlay of Rs 60,100 crore. It was planning to generate Rs 18,050 crore through internal resources.

"In view of the shortfall in generation of targeted internal resources, the plan outlay for the current year has been reassessed downward from Rs 60,100 to Rs 55,881 crore," said minister of state for railways Adhir Ranjan Chowdhury.

The cutting down in total plan outlay due to shortfall in revenues through internal means is set to adversely affect spending on Railways' modernization and safety programmes.

Though Railways has tried to put up a brave front and claimed that the available resources have been judiciously allocated as per requirement of priority projects, it has been pleading with the finance ministry and the Planning Commission for hike in additional Budgetary support to fund its pending projects and safety measures. But, the finance ministry has been pressing Railways to increase its resources through internal means or encourage private investment.

Railways is losing around Rs 24,000 crore every year in cross-subsidizing passenger travel by freezing fare hike under popular pressure since last 10 years. The freight loading target has also been revised downwards. Railway minister Pawan Bansal is aware of the tough job at hand: To pull the national transporter out of financial mess and carry on with the reformist agenda.

Bansal had admitted in Parliament about the transporter's failure to manage finances for completing its long list of pending projects. Railways needs Rs 147,187 crore for completing 347 pending projects related only to laying of new tracks, gauge conversion and doubling of rail lines, but could manage only Rs 5,000 crore annually for implementing all its projects. The transporter is pinning hope on timely completion of UPA's ambitious dedicated freight corridor (DMRC), which has tied up its funding from multilateral agencies. The completion of DMRC will increase freight revenue as well as decongest tracks for passenger traffic.

After getting the Union Cabinet's approval for its public-private partnership (PPP) models, railways is also expecting to encourage private investment. Private players have been demanding a clear policy framework for promoting private sector investment and foreign direct investment. Railway modernization requires an investment of around Rs 8.4 trillion in the next five years, of which Rs 2.30 trillion are likely to be raised through PPP ventures.

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Rice Withdraws From Sec. of State Consideration

Image Credit: Evan Vucci/AP Photo

UN Ambassador Susan Rice has withdrawn her name from consideration for Secretary of State, saying the criticism surrounding her comments on Benghazi had become an “irresponsible distraction.”

“I am fully confident that I could serve our country ably and effectively in that role,” Rice wrote in a letter to President Obama today. “However, if nominated, I am now convinced that the confirmation process would be lengthy, disruptive and costly – to you and to our most pressing national and international priorities.”

Read Susan Rice’s letter to President Obama

“That trade-off is simply not worth it to our country,” she added.

Rice has been criticized by Republicans for her response to questions on the Sunday talk shows shortly after the terrorist attack on the U.S. consulate in Benghazi killed four Americans.

“The position of Secretary of State should never be politicized,” Rice wrote. “As someone who grew up in an era of comparative bipartisanship and as a sitting U.S. national security official who has served in two U.S. Administrations, I am saddened that we have reached this point, even before you have decided whom to nominate. We cannot afford such an irresponsible distraction from the most pressing issues facing the American people.”

Sources tell ABC News that even before Rice withdrew her name from consideration to be Secretary of State earlier today, Senator John Kerry, D-Mass., had emerged as the leading contender, with the president convinced he would be the better Secretary of State.

The president is all but certain to nominate Kerry, sources say, though no official decision has been made.

The position of Secretary of Defense is not as far along in the process, but sources say former Sen. Chuck Hagel, R-Neb., seems to have an edge right now over other possible candidates such as former undersecretary of defense for policy Michelle Flournoy and deputy Secretary of Defense Ashton Carter.

The CIA director slot, sources say, will go to either acting director Michael Morrell or White House counterterrorism adviser John Brennan.

President Obama, who publicly defended Rice on several occasions, has accepted her decision to remove her name from the running.

“I have every confidence that Susan has limitless capability to serve our country now and in the years to come, and know that I will continue to rely on her as an advisor and friend,” Obama said in a written statement. 

“While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks, her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first,” he said. “The American people can be proud to have a public servant of her caliber and character representing our country.”

Two Republican members of Congress who had adamantly opposed Rice’s potential nomination both reacted quickly.

Sen. Lindsey Graham, R-SC., tweeted, “I respect Ambassador Rice’s decision.” And a spokesperson for Sen. John McCain, R-Ariz., wrote, “Senator McCain thanks Ambassador Rice for her service to the country and wishes her well. He will continue to seek all the facts surrounding the attack on our consulate in Benghazi that killed four brave Americans.”

–Jake Tapper and Mary Bruce

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Russia says Syrian rebels might win

MOSCOW/BEIRUT (Reuters) - Syrian rebels are gaining ground and might win, Russia's Middle East envoy said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad as the 20-month-old civil war closes in on Damascus.

Moscow was "finally waking up to reality", the United States said and it called on Russia to withdraw all support for Assad, who NATO and the rebels' new political leader forecast was heading for collapse.

"One must look the facts in the face," Russia's state-run RIA quoted Mikhail Bogdanov as saying. "Unfortunately, the victory of the Syrian opposition cannot be ruled out."

Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, said the Syrian government was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.

In Washington, State Department spokeswoman Victoria Nuland said: "We want to commend the Russian government for finally waking up to the reality and acknowledging that the regime's days are numbered.

"The question now is, will the Russian government join those of us in the international community who are working with the opposition to try to have a smooth democratic transition?"

Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days.

The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels, who now hold an almost continuous arc of territory from the east to the southwest of Damascus.

The head of NATO said he thought Assad's government was nearing collapse and the new leader of Syria's opposition told Reuters the people of Syria no longer needed international forces to protect them.

"The horrific conditions which the Syrian people endured prompted them to call on the international community for military intervention at various times," said Mouaz al-Khatib, a preacher who heads Syria's National Coalition.

"Now the Syrian people have nothing to lose. They handled their problems by themselves. They no longer need international forces to protect them," he added in the interview on Wednesday night, accusing the international community of slumbering while Syrians were killed.

He did not specify whether by intervention he meant a no-fly zone that rebels have been demanding for month, a ground invasion - which the opposition has warned against - or arms.

He said the opposition would consider any proposal from Assad to surrender power and leave the country, but would not give any assurances until it saw a firm proposal.

In the latest blow to the government, a car bomb killed at least 16 men, women and children in Qatana, a town about 25 km (15 miles) southwest of Damascus where many soldiers live, activists and state media said.

The explosion occurred in a residential area for soldiers in Qatana, which is near several army bases, said Rami Abdelrahman, head of the pro-opposition Syrian Observatory for Human Rights.

He put the death toll as 17, including seven children and two women. State news agency SANA said 16 people had died.

State television showed soldiers walking by a partly collapsed building, with rubble and twisted metal on the road.

The pro-government Al-Ikhbariya TV said a second car bomb in the Damascus suburb of al-Jadideh killed eight, most of them women and children.

Apart from gaining territory in the outskirts of Damascus in recent weeks, rebels have also made hit-and-run attacks or set off bombs within the capital, often targeting state security buildings or areas seen as loyal to Assad, such as Jaramana, where twin bombs killed 34 people in November.

The Pakistani Foreign Office said security concerns had prompted it to withdraw the ambassador and all Pakistani staff from the embassy in the central suburb of East Mezzeh, a couple miles from the Interior Ministry.

BACK TO THE WALL

With his back to the wall, Assad was reported to be turning ever deadlier weapons on his adversaries.

"I think the regime in Damascus is approaching collapse," NATO Secretary-General Anders Fogh Rasmussen said on Thursday.

Human Rights Watch said some populated areas had been hit by incendiary bombs, containing flammable materials such as napalm, thermite or white phosphorous, which can set fire to buildings or cause severe burns and respiratory damage.

The British-based Syrian Observatory said war planes were bombing rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.

At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.

The United States, European powers and Arab states bestowed their official blessing on Syria's newly-formed opposition coalition on Wednesday, despite increasing signs of Western unease at the rise of militant Islamists in the rebel ranks.

Western nations at "Friends of Syria" talks in Marrakech, Morocco rallied around a new opposition National Coalition formed last month under moderate Islamist cleric al-Khatib.

Russia, which along with China has blocked any U.N. Security Council measures against Assad, criticized Washington's decision to grant the coalition formal recognition, saying it appeared to have abandoned any effort to reach a political solution.

Bogdanov's remarks were the clearest sign yet that Russia is preparing for the possible defeat of Assad's government.

"We are dealing with issues of preparations for an evacuation. We have mobilization plans and are clarifying where our citizens are located," Bogdanov said.

The fall of Damascus to the rebels was not a prospect Moscow relished: "The fighting will become even more intense and (Syria) will lose tens of thousands and, perhaps, hundreds of thousands of civilians," Bogdanov told Russia Today television.

"If such a price for the removal of the president seems acceptable to you, what can we do? We, of course, consider it absolutely unacceptable."

Nuland said Russia should now back away from Assad: "They can withdraw any residual support for the Assad regime, whether it is material support (or) financial support," she said.

"They can also help us to identify people who might be willing inside of Syria to work on a transitional structure."

A British Foreign Office spokesperson said the Russian position remained largely unchanged but the situation on the ground gave Moscow an interest in finding an agreed solution, even if the chances of such a solution remained slim.

"If Russia's position on Syria had been a brick wall, it is now a brick wall with a crack in it," the spokesperson said.

(Additional reporting by Dominic Evans in Beirut, Samia Nakhoul and Khaled Yacoub Oweis in Marrakech, Andrew Quinn in Washington and Mohammed Abbas in London; Editing by Philippa Fletcher and Alastair Macdonald)

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