Algerian army stages "final assault" on gas plant

ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army carried out a dramatic final assault to end a siege by Islamist militants at a desert gas plant on Saturday in which 23 hostages were killed, many of them believed to be foreigners, the interior ministry said.

Thirty-two al Qaeda-linked militants were killed in the army operation to recapture the complex, according to a provisional toll from the ministry. A statement said 107 foreign hostages and 685 Algerian hostages had survived.

Militants seized the remote compound in the Sahara desert before dawn on Wednesday, taking a large number of hostages, including foreigner workers, and booby-trapped the compound with explosives.

The crisis marked a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

The gas plant near the town of In Amenas was home to expatriate workers from Britain's BP, Norway's Statoil, Japanese engineering firm JGC Corp and others. One American and one British citizen have been confirmed dead.

British Prime Minister David Cameron said on Saturday he feared for the lives of five British citizens still unaccounted for. Statoil said five of its workers, all Norwegian nationals, were still missing. Japanese and American workers are also unaccounted for.

"We feel a deep and growing unease ... we fear that over the next few days we will receive bad news," Statoil Chief Executive Helge Lund said on Saturday. "People we have spoken to describe unbelievable, horrible experiences."

The Islamists' attack has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamist radicalism in northern Africa to centre stage.

British Foreign Secretary William Hague confirmed that Algerian military operations at the plant had been concluded.

"We understand that the site is not yet fully safe because of hazards such as booby traps and so they are still working on that," Hague said.

Some Western governments expressed frustration at not being informed of the Algerian authorities' plans to storm the complex. Algeria's response to the raid will have been conditioned by the legacy of a civil war against insurgents in the 1990s which claimed 200,000 lives.

HOSTAGES FREED

As the army closed in, 16 foreign hostages were freed, a source close to the crisis said. They included two Americans and one Portuguese.

BP's chief executive Bob Dudley said on Saturday four of its 18 workers at the site were missing. The remaining 14 were safe.

The captors said their attack on the Algerian gas plant was a response to the French offensive in Mali. However, officials say the elaborate raid would have been planned well before France launched its strikes.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified gas compound when it was seized on Wednesday.

Hundreds escaped on Thursday when the army launched a rescue operation, but many hostages were killed.

Before the interior ministry released its provisional death toll, an Algerian security source said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.

The U.S. State Department said on Friday one American, Frederick Buttaccio, had died but gave no further details.

U.S. Defense Secretary Leon Panetta said nobody was going to attack the United States and get away with it.

"We have made a commitment that we're going to go after al Qaeda wherever they are and wherever they try to hide," he said during a visit to London. "We have done that obviously in Afghanistan, Pakistan, we've done it in Somalia, in Yemen and we will do it in North Africa as well."

BURNED BODIES

Earlier on Saturday, Algerian special forces found 15 unidentified burned bodies at the plant, a source told Reuters.

The field commander of the group that attacked the plant is a fighter from Niger called Abdul Rahman al-Nigeri, according to Mauritanian news agencies. His boss, Mokhtar Belmokhtar, a veteran of fighting in Afghanistan and Algeria's civil war of the 1990s, appears not to have joined the raid.

Britain, Japan and other countries have expressed irritation that the army assault was ordered without consultation and officials grumbled at the lack of information.

But French President Francois Hollande said the Algerian military's response seemed to have been the best option given that negotiation was not possible.

"When you have people taken hostage in such large number by terrorists with such cold determination and ready to kill those hostages - as they did - Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation," Hollande said.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in the civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

France says the hostage incident proves its decision to fight Islamists in neighboring Mali was necessary. Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Rosalind Russell)

(This story was refiled to correct Algerian hostages)

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Obama blames "terrorists" for Algeria hostage deaths

WASHINGTON: US President Barack Obama said on Saturday that blame for deaths stemming from a hostage crisis in Algeria lay with the "terrorists" who had earlier taken foreigners captive at a remote gas plant.

The remarks were the president's first direct comments about the protracted hostage crisis. His statement was released several hours after Algerian troops stormed the gas plant to end a situation that had began four days earlier.

"Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria," Obama said.

"The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms."

Obama said the attack by Al-Qaeda-linked gunmen at the In Amenas facility deep in the Sahara was a reminder of the threat posed by "Al-Qaeda and other violent extremist groups in North Africa."

The United States had been in constant contact with Algerian officials over the crisis, the president said.

"In the coming days, we will remain in close touch with the government of Algeria to gain a fuller understanding of what took place so that we can work together to prevent tragedies like this," Obama added.

Twenty-one hostages died during the siege and 32 kidnappers were also killed, while special forces were able to free "685 Algerian workers and 107 foreigners," according to Algeria's Interior Ministry.

Among the dead were an unknown number of foreigners -- including from Britain, France, Romania and the United States -- and many were still unaccounted for, including Japanese.

In Saturday's assault, "the Algerian army took out 11 terrorists, and the terrorist group killed seven foreign hostages," state television said, without giving a breakdown of their nationalities.

A security official who spoke to AFP as army helicopters overflew the plant gave the same death tolls, adding it was believed the foreigners were executed "in retaliation".

- AFP/de

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Siddis plan a bash to celebrate Obama 2.0

MANGALORE: Gollehalli, 7 km from Haliyal town in Uttara Kannada, will reverberate to the beats of a special Siddi drum 'Dhamal' on Sunday, to mark the ascent of Barack Obama as US President for the second time in a row.

Disappointed with their earlier effort at not being able to send honey to Obama when he was elected to the White House for the first time, the Siddis this time will send him a letter wishing him success in his second term.

Diog Bastaon Siddi, president of the Large Agriculture Multipurpose Society run by Siddis, said: "We will remind Obama of our common ancestry and urge him to have closer ties with India. We will also remind him of our condition and seek his help for our social and economic uplift and progress."

Bureaucratic red tape had prevented the Siddis from sending hand-collected natural raw honey from the forests to Obama. "The then deputy commissioner had told us there were several restrictions in sending food items. So it wasn't sent,'' Diog said. Besides, Siddis are making special arrangements to celebrate Obama's swearing-in ceremony on Sunday. "We've organized a function where over 1,000 Siddis from different parts of Uttara Kannada and elsewhere will participate," said Diog.

The proudest moment for Siddis was when anti-apartheid campaigner Nelson Mandela reciprocated their wishes on him being set free from prison in South Africa after 27 years. "Mandela reciprocated our wishes and assured us he would visit us when he came to India," said Diog.

The day-long function on Sunday will commence with a cake-cutting ceremony, coupled with Dhamal (traditional Siddi) dances. The morning will be spent educating Siddis about their legal rights and various schemes available to them through the government. "The afternoon cultural function will set off the celebratory mood of dance and music," said Diog. "We've been assured by the US consulate authorities at Chennai that the letter will be sent to the US President,'' said a joyful Diog.

The Siddis, numbering around 25,000, belong to a tribe of African ancestry. They've basically been forest-dwellers spread over thickly-wooded mountainous terrains of Haliyal, Yellapur and Ankola taluks for centuries. According to historians, the Siddis reached India as slaves of invading armies who struck the Indian west coast.

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

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Alzheimer's Association: http://www.alz.org

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Algeria Hostage Crisis Over, One American Dead

After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.

One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.

But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."

Inside Algerian Hostage Crisis, One American Dead Watch Video

American Hostages Escape From Algeria Terrorists Watch Video

In a statement, President Obama said, "Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria. The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."

According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.

The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.

Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.

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Foreigners still trapped in Sahara hostage crisis

ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were captive or missing inside a desert gas plant on Saturday, nearly two days after the Algerian army launched an assault to free them that saw many hostages killed.

The standoff between the Algerian army and al Qaeda-linked gunmen - one of the biggest international hostage crises in decades - entered its fourth day, having thrust Saharan militancy to the top of the global agenda.

The number and fate of victims has yet to be confirmed, with the Algerian government keeping officials from Western countries far from the site where their countrymen were in peril.

Reports put the number of hostages killed at between 12 to 30, with possibly dozens of foreigners still unaccounted for - among them Norwegians, Japanese, Britons, Americans and others.

By nightfall on Friday, the Algerian military was holding the vast residential barracks at the In Amenas gas processing plant, while gunmen were holed up in the industrial plant itself with an undisclosed number of hostages.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified compound when it was seized before dawn on Wednesday by Islamist fighters who said they wanted a halt to a French military operation in neighboring Mali.

Hundreds escaped on Thursday when the army launched an operation, but many hostages were killed in the assault. Algerian forces destroyed four trucks holding hostages, according to the family of a Northern Irish engineer who escaped from a fifth truck and survived.

Leaders of Britain, Japan and other countries have expressed frustration that the assault was ordered without consultation and officials have grumbled at the lack of information. Many countries also withheld details about their missing citizens to avoid releasing information that might aid the captors.

An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.

Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.

The base was home to foreign workers from Britain's BP, Norway's Statoil and Japanese engineering firm JGC Corp and others.

Norway says eight Norwegians are still missing. JGC said it was missing 10 staff. Britain and the United States have said they have citizens unaccounted for but have not said how many.

The Algerian security source said 100 foreigners had been freed but 32 were still unaccounted for.

"We must be prepared for bad news this weekend but we still have hope," Norwegian Prime Minister Jens Stoltenberg said.

The attack has plunged international capitals into crisis mode and is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.

Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.

"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," Algeria's state news agency said on Friday, quoting a security source.

MULTINATIONAL INSURGENCY

Algerian commanders said they moved in on Thursday about 30 hours after the siege began, because the gunmen had demanded to be allowed to take their captives abroad.

A French hostage employed by a French catering company said he had hidden in his room for 40 hours under the bed before he was rescued by Algerian troops, relying on Algerian employees to smuggle him food with a password.

"I put boards up pretty much all round," Alexandre Berceaux told Europe 1 radio. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

The captors said their attack was a response to the French military offensive in neighboring Mali. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the single week since France first launched its strikes.

Paris says the incident proves its decision to fight Islamists in neighboring Mali was necessary.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in a civil war in the 1990s. But in the past two years the regional wing of Al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year, prompting the French intervention in that poor African former colony.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere... Those who would wantonly attack our country and our people will have no place to hide."

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humphries in Dublin; Writing by Philippa Fletcher and Peter Graff; Editing by Andrew Roche and Tom Pfeiffer)

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Boeing suspends 787 Dreamliner deliveries

NEW YORK: US aerospace giant Boeing said late Friday it had suspended deliveries of its new 787 Dreamliner jet until a battery problem is resolved, but continues to build the plane.

"We will not deliver 787s until the FAA approves a means of compliance with their recent Airworthiness Directive concerning batteries and the approved approach has been implemented," a Boeing spokesman said in an email.

"Production of 787s continues," he said.

The Federal Aviation Administration on Wednesday ordered the grounding of US-operated 787s to address the battery problem after a damaged battery on an All Nippon Airways 787 forced an emergency landing.

The risk of fire from overheating power packs has emerged as a major concern for Boeing's cutting-edge new planes since the incident on the domestic flight in Japan, prompting airlines around the world to ground all 50 of the 787s in service.

- AFP/de

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Bangalore student commits suicide in Germany

BANGALORE: A Bangalore student enrolled in a post-graduate course in Siegen University, Germany, died under mysterious circumstances. While German authorities said it was a clear case of suicide, the youth's family expressed doubts about it.

The body of Likhith Shashidhar, 24, who was found hanging in his apartment in Kreuztal, allegedly by a computer cable tied around his neck on January 8, was brought to the city on Thursday night and cremated on Friday.

Likhith graduated from Jain Engineering College, Bangalore. After working for a couple of years here, he joined for the MS course in Mechatronics at Siegen University. He is survived by his parents and a younger sister.

His parents SV Shashidhara and Siddalingamma were told by German authorities on January 9 that their son had committed suicide. But papers accompanying the body were vague about the cause of death. A 'no-objection certificate for dead body clearance' issued by the Indian consulate in Frankfurt cited the death certificate and mentioned the cause of death as "unknown". Immigration authorities at the Bengaluru International Airport (BIA) ascribed the death to an "accident".

Likhith's family suspect Likhith's death was linked to alleged harassment meted out to him by his seniors. Siegen University authorities dismissed these charges as mere rumours and said Likhith was depressed.

Lekha, Likhith's younger sister and engineering student, told reporters her brother had told her that some seniors at the university had posted some of his pictures on Facebook and harassing him about it.

The family last spoke to Likhith on January 7. "He told me he was being harassed by his seniors and he was fed up. He said he wanted to return home. As he didn't seem too well, I called one of his roommates, also a Bangalorean from Yelahanka. He told me Likhith had been depressed for some time and promised he would talk to him. Then came the news of his death," said Siddalingamma, a school librarian.

On January 8, Siddalingamma got a missed call from Likhith. "Generally when he gave me a missed call, it meant he wanted me to log on to Skype. I was in school when I got the call. I got back home and found he wasn't online. A day earlier, he asked what we wanted from Germany. I can't understand why he committed suicide," she said.

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Flu season 'bad one for the elderly,' CDC says

The number of older people hospitalized with the flu has risen sharply, prompting federal officials to take unusual steps to make more flu medicines available and to urge wider use of them as soon as symptoms appear.

The U.S. is about halfway through this flu season, and "it's shaping up to be a worse-than-average season" and a bad one for the elderly, said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.

It's not too late to get a flu shot, and "if you have symptoms, please stay home from work, keep your children home from school" and don't spread the virus, he said.

New figures from the CDC show widespread flu activity in all states but Tennessee and Hawaii. Some parts of the country are seeing an increase in flu activity "while overall activity is beginning to go down," Frieden said. Flu activity is high in 30 states and New York City, up from 24 the previous week.

Nine more children or teens have died of the flu, bringing the nation's total this flu season to 29. That's close to the 34 pediatric deaths reported during all of the last flu season, although that one was unusually light. In a typical season, about 100 children die of the flu and officials said there is no way to know whether deaths this season will be higher or lower than usual.

The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people most years.

So far, half of confirmed flu cases are in people 65 and older. Lab-confirmed flu hospitalizations totaled 19 for every 100,000 in the population, but 82 per 100,000 among those 65 and older, "which is really quite a high rate," Frieden said.

"We expect to see both the number and the rates of both hospitalizations and deaths rise further in the next week or so as the flu epidemic progresses,'" so prompt treatment is key to preventing deaths, he said.

About 90 percent of flu deaths are in the elderly; the very young and people with other health problems such as diabetes are also at higher risk.

If you're worried about how sick you are and are in one of these risk groups, see a doctor, Frieden urged. One third to one half of people are not getting prompt treatment with antiviral medicines, he said.

Two drugs — Tamiflu and Relenza — can cut the severity and risk of death from the flu but must be started within 48 hours of first symptoms to do much good. Tamiflu is available in a liquid form for use in children under 1, and pharmacists can reformulate capsules into a liquid if supplies are short in an area, said Dr. Margaret Hamburg, head of the Food and Drug Administration.

To help avoid a shortage, the FDA is letting Tamiflu's maker, Genentech, distribute 2 million additional doses of capsules that have an older version of package insert.

"It is fully approved, it is not outdated," just lacks information for pharmacists on how to mix it into a liquid if needed for young children, she said.

This year's flu season started about a month earlier than normal and the dominant flu strain is one that tends to make people sicker. Vaccinations are recommended for anyone 6 months or older. There's still plenty of vaccine — an update shows that 145 million doses have been produced, "twice the supply that was available only several years ago," Hamburg said.

About 129 million doses have been distributed already, and a million doses are given each day, Frieden said. The vaccine is not perfect but "it's by far the best tool we have to prevent influenza," he said.

Carlos Maisonet, 73, got a flu shot this week at New York's Brooklyn Hospital Center at the urging of his wife, who was vaccinated in August.

"This is his first time getting the flu shot," said his wife, Zulma Ramos.

Last week, the CDC said the flu again surpassed an "epidemic" threshold, based on monitoring of deaths from flu and a frequent complication, pneumonia. The flu epidemic happens every year and officials say this year's vaccine is a good match for strains that are going around.

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Online:

Flu vaccine finder: http://www.flu.gov

CDC flu info: http://www.cdc.gov/flu/index.htm

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AP Photographer Bebeto Matthews in New York contributed to this report.

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One American Confirmed Dead in Algeria

U.S. officials told ABC News that at least one American has been killed in the hostage standoff at an Algerian gas plant, and the family of the deceased American has been notified.

An al Qaeda-linked group called the Masked Brigade and led by the one-eyed jihadi Mokhtar Belmokhtar raided the BP joint venture facility in In Amenas on Wednesday, taking an undetermined number of hostages from more than half a dozen nations, including at least two Americans.

On Friday, the group demanded the release of two convicted terrorists held in U.S. prisons, including the "blind sheikh" who helped plan the first attack on New York's World Trade Center, in exchange for the freedom of two American hostages, according to an African news service.

The terror group reportedly contacted a Mauritanian news service with the offer. In addition to the release of Omar Abdel-Rahman, who planned the 1993 World Trade Center bombing, they demanded the release of Aifia Siddiqui, a Pakistani scientist who shot at two U.S. soldiers in Afghanistan in 2008.

Asked about the unconfirmed report of a proposed swap, State Department spokeswoman Victoria Nuland said firmly, "The United States does not negotiate with terrorists." She repeated the statement again when questioned further. She also said she was not prepared to get into any details about the status of Americans in "an ongoing hostage situation."

At least three Americans were being held hostage by the militants when the Algerian military mounted a rescue operation at the facility Thursday that reportedly resulted in casualties.

Five other Americans who were at the facility when it was attacked by the terrorists are now safe and believed to have left the country, according to U.S. officials.

Algeria Hostage Situation: Military Operation Mounted Watch Video

Reports that dozens of hostages were killed during the Algerian military's attempt to retake the compound have not been confirmed, though Algeria's information minister has confirmed that there were casualties. It's known by U.S. and foreign officials that multiple British, Japanese and Norwegian hostages were killed.

According to an unconfirmed report by an African news outlet, the militants said seven hostages survived the attack, including two Americans, one Briton, three Belgians and a Japanese national. U.S. officials monitoring the case had no information indicating any Americans have been injured or killed, but said the situation is fluid and casualties cannot be ruled out.

On Friday, a U.S. military plane evacuated between 10 and 20 people in need of medical attention, none of them American, from In Amenas and took them to an American medical facility in Europe. A second U.S. plane is preparing to evacuate additional passengers in need of medical attention.

British Prime Minister David Cameron told parliament today that the terror attack "appears to have been a large, well coordinated and heavily armed assault and it is probable that it had been pre-planned."

"The terrorist group is believed to have been operating under Mokhtar Belmokhtar, a criminal terrorist and smuggler who has been operating in Mali and in the region for a number of years," said Cameron.

Cameron said Algerian security forces are still in action at the facility. On Thursday, he said that the situation was "very bad … A number of British citizens have been taken hostage. Already, we know of one who has died. ... I think we should be prepared for the possibility for further bad news, very difficult news in this extremely difficult situation."

The kidnappers had earlier released a statement saying there are "more than 40 crusaders" held "including 7 Americans."

U.S. officials had previously confirmed to ABC News that there were at least three Americans held hostage at the natural gas facility jointly owned by BP, the Algerian national oil company and a Norwegian firm at In Amenas, Algeria.

"I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation," said Panetta. "I don't think there's any question that [this was] a terrorist act and that the terrorists have affiliation with al Qaeda."

He said the precise motivation of the kidnappers was unknown.

"They are terrorists, and they will do terrorist acts," he said.

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Thirty hostages reported killed in Algeria assault

ALGIERS (Reuters) - Thirty hostages and at least 11 Islamist militants were killed on Thursday when Algerian forces stormed a desert gas plant in a bid to free many dozens of Western and local captives, an Algerian security source said.

Details remained scant - including for Western governments, some of which did little to disguise irritation at being kept in the dark by Algeria before the raid and its bloody outcome.

Two Japanese, two Britons and a French national were among at least seven foreigners killed, the source told Reuters. Eight of the dead hostages were Algerian. The nationalities of the rest, as well as of perhaps dozens more who escaped, were unclear.

Americans, Norwegians, Romanians and an Austrian have also been mentioned by their governments as having been captured.

Underlining the view of African and Western leaders that they face a multinational, al Qaeda-linked insurgency across the Sahara - a conflict that prompted France to send troops to neighboring Mali last week - the official source said only two of the 11 dead militants were Algerian, including their leader.

After an operation that appeared to go on for some eight hours, after Algeria refused the kidnappers' demand to leave the country with their hostages, the bodies of three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman were found.

So too was that of Taher Ben Cheneb, an Algerian whom the security official described as a prominent jihadist commander in the Sahara.

The gunmen who seized the important gas facility deep in the desert before dawn on Wednesday had been demanding France halt its week-old offensive against Islamist rebels in Mali.

French President Francois Hollande said the hostage drama, which has raised fears of further militant attacks, showed that he was right to send more than 1,000 French troops to Mali to back up a West African force in support of Mali's government.

A Algerian government spokesman, who confirmed only that an unspecified number of hostages had died, said the tough response to a "diehard" attitude by the militants showed that, as during its bloody civil war against Islamists in the 1990s, Algiers would not negotiate or stand for "blackmail" from "terrorists".

SECURITY IN QUESTION

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions, however, over the reliability of what was thought to be strong security.

Foreign companies said they were pulling non-essential staff out of the country, which has only in recent years begun to seem stable after a decade of blood-letting.

"The embarrassment for the government is great," said Azzedine Layachi, an Algerian political scientist at New York's St John's University. "The heart of Algeria's economy is in the south. where the oil and gas fields are. For this group to have attacked there, in spite of tremendous security, is remarkable."

Algiers, whose leaders have long had frosty relations with the former colonial power France and other Western countries, may also have some explaining to do over its tactics in putting an end to a hostage crisis whose scale was comparable to few in recent decades bar those involving Chechen militants in Russia.

Communication Minister Mohamed Said sounded unapologetic, however. "When the terrorist group insisted on leaving the facility, taking the foreign hostages with them to neighboring states, the order was issued to special units to attack the position where the terrorists were entrenched," he told state news agency APS, which said some 600 local workers were freed.

A local source told Reuters six foreign hostages had been killed along with eight of their captors when troops fired on a vehicle being used by the gunmen at the Tigantourine plant.

The standoff began when gunmen calling themselves the Battalion of Blood stormed the facility early on Wednesday morning. They said they were holding 41 foreigners.

In a rare eyewitness account of Wednesday's raid, a local man who had escaped from the facility told Reuters the militants appeared to have inside knowledge of the layout of the complex and used the language of radical Islam.

"The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels," Abdelkader, 53, said by telephone from his home in the nearby town of In Amenas. "'We will kill them,' they said."

Mauritanian agency ANI and Qatar-based Al Jazeera said earlier that 34 captives and 15 militants had been killed when government forces fired at a vehicle from helicopters.

BAD NEWS EXPECTED

British Prime Minister David Cameron said people should prepare for bad news about the hostages. He earlier called his Algerian counterpart to express his concern at what he called a "very grave and serious" situation, his spokesman said.

"The Algerians are aware that we would have preferred to have been consulted in advance," the spokesman added.

Norwegian Prime Minister Jens Stoltenberg said he had been told by his Algerian counterpart that the action had started at around noon. He said they had tried to find a solution through the night, but that it had not worked.

"The Algerian prime minister said they felt they had no choice but to go in now," he said.

The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against Islamist rebels after air strikes began last week.

"What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the U.N. charter," Hollande said, adding that things seemed to have taken a "dramatic" turn.

He said earlier that an unspecified number of French nationals were among the hostages. A French national was also among the hostage takers, a local source told Reuters. A large number of people from the former French colony live in France.

Algerian Interior Minister Daho Ould Kablia said the kidnappers were loyal to Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought in Afghanistan and set up his own group in the Sahara after falling out with other local al Qaeda leaders.

A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.

Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.

The militants had said seven Americans were among their hostages. The White House said it believed Americans were among those held but U.S. officials could not confirm the number.

"This is an ongoing situation and we are seeking clarity," White House spokesman Jay Carney told reporters.

FOREIGN FIRMS

Norway's Statoil, which runs the plant with BP of Britain and Algeria's state energy company, said it had no word on nine of its Norwegian staff who had been held, but that three Algerian employees were now free.

BP said some of its staff were being held but would not say how many or their nationalities.

Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. The Irish government said one Irish hostage was freed.

Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its northern oasis towns last year.

However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.

The militants, communicating through established contacts with media in neighboring Mauritania, said on Wednesday they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.

They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground there, and combat was under way against the rebels that it first began targeting from the air last week.

The French action last week came as a surprise but received widespread public international support. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.

A day after launching the campaign in Mali, Hollande also ordered a commando raid in Somalia on Saturday, which failed to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed the hostage, Denis Allex. France said it believed he had died in the raid.

(Additional reporting by Ali Abdelatti in Cairo, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin in Dublin; Writing by Peter Graff, Giles Elgood, Philippa Fletcher and Alastair Macdonald; Editing by Kevin Liffey)

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Australia's Qantas cancels one Dreamliner, 14 still on order

SYDNEY: Australian airline Qantas Friday said it was cutting its order for Dreamliner aircraft by one, but said it had planned this move before the Boeing jets were grounded worldwide and still had 14 on order.

Qantas had initially said it would not be changing its order for 15 of the fuel-efficient aircraft after a Japanese jet was forced into an emergency landing on Wednesday, triggering the halting of flights.

But in a statement on Friday on an update to its fleet, it said it had cancelled a single Boeing 787-8 Dreamliner on order for low-cost carrier Jetstar.

The remaining 14 B787-8s will be delivered to Jetstar as planned, with the first aircraft to arrive in mid-2013, it said.

Qantas chief executive Alan Joyce said it was firmly committed to the Dreamliners for both Qantas International and Jetstar, and that it retained options and purchase rights for 50 B787s of either -8 or -9 variants available for delivery from 2016.

"... we are using the flexibility in our agreement with Boeing to cancel a firm order knowing that we can replace it with one of our 50 options for this aircraft down the track, and with a full view of what market conditions are like at the time," he said.

The airline said the decision to amend the B787 order was reached at the end of 2012 and the agreement with Boeing had now been finalised.

Qantas said production of its first B787 aircraft had just begun and it was confident current technical issues would be resolved by Boeing before it took delivery in mid-2013.

In the statement on its fleet update, Qantas also said it would lease an additional five Boeing 717 aircraft and purchase three Bombardier Q400 planes, due to start arriving from the second half of 2013, to boost domestic operations.

Qantas said the fleet changes would have no material impact on the group's planned capital expenditure.

The US Federal Aviation Administration has grounded Dreamliners with effect worldwide after several recent incidents believed to be related to complex electrical systems and the batteries used in the next-generation aircraft.

- AFP/jc

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Mulayam threatens changes in LS candidate list

LUCKNOW: In yet another denunciation of AkhileshYadav governance in Uttar Pradesh, Samajwadi Party chief Mulayam Singh Yadav, on Thursday, said there were instances of those in power serving their "own interest" rather than focusing on "public interest". He also hinted the party may give a re-look to the list of 63 candidates it announced for the LokSabha elections scheduled in 2014.

"I am aware of what is going on in the state government," said the SP national president. Yadav's stern observation came during the party's state working committee meeting, attended not only by SP's top leaders including general secretary Ram Gopal Yadav, but also MLAs who are cabinet/state ministers in the Akhilesh's cabinet. This is the second time that Mulayam red-flagged working of the present dispensation headed by his son.

It was only three days ago, during a function in Saifai on January 14, that Mulayam had questioned the working of the state government saying it was being run by some handpicked bureacrats instead of the ministers. He also pointed out how some of the babus were handling more than one important department. The SP chiefs' observation led to a sudden reshuffle as in transfer of senior IAS officers Anil Kumar Gupta and Sanjeev Saran. Both these officers were considered to be one of the most powerful administrative officials in the Akhilesh Yadav team. While Gupta was shunted out as IIDC and principal secretary (energy) to an insignificant post, member revenue board, Saran, who was CEO of Noida, was put on the waiting list.

On Thursday, Yadav, reportedly went a step ahead and criticised even MLAs and MPs of ignoring the interests of party workers. His observation comes in the midst of raging speculation about some of the party workers getting restless and causing embarrassment to the leadership. Though the party assuaged some workers giving them chairman/vice-chairmanship of different boards and corporations, it left quite a few of them seething.

Speaking to reporters, SP general secretary Ram Asrey Kushwaha said: "Netaji (Mulayam) does have the right to assess the working of the state government as well as party affairs. It is our responsibility to see his observations are given full regard."

At the same time, the SP chief also asked workers not to get into the business of transfer and posting of officials and instead concentrate on problems faced by people in their respective areas. SP national general secretary, Ram Gopal Yadav had recently admitted that aspirations of the workers had risen significantly.

During the meeting, he was assured by chief minister Akhilesh Yadav that efforts will be made to make improvements in governance, said sources. At the meeting, the party also reviewed preparations for the 2014 Lok Sabha elections and discussed names of candidates. Later, SP's spokesperson, Rajendra Chaudhary said Mulayam Singh Yadav emphasised the state government to meet the target set in the election manifesto. He also gave necessary directions on how party workers should go about in a bid to achieve success in 2014 Lok Sabha elections.

Meanwhile, SP announced Kameshwar Upadhaya's son Ashutosh Upadhayay as candidate for by-elections in Bhatpar Rani constituency in Deoria district. The seat fell vacant following death of Kameshwar Upadhyay, a five times MLA from the seat in October last year.

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Will Obama's order lead to surge in gun research?

MILWAUKEE (AP) — Nearly as many Americans die from guns as from car crashes each year. We know plenty about the second problem and far less about the first. A scarcity of research on how to prevent gun violence has left policymakers shooting in the dark as they craft gun control measures without much evidence of what works.

That could change with President Barack Obama's order Wednesday to ease research restrictions pushed through long ago by the gun lobby. The White House declared that a 1996 law banning use of money to "advocate or promote gun control" should not keep the Centers for Disease Control and Prevention and other federal agencies from doing any work on the topic.

Obama can only do so much, though. Several experts say Congress will have to be on board before anything much changes, especially when it comes to spending money.

How severely have the restrictions affected the CDC?

Its website's A-to-Z list of health topics, which includes such obscure ones as Rift Valley fever, does not include guns or firearms. Searching the site for "guns" brings up dozens of reports on nail gun and BB gun injuries.

The restrictions have done damage "without a doubt" and the CDC has been "overly cautious" about interpreting them, said Daniel Webster, director of the Center for Gun Policy and Research at the Johns Hopkins Bloomberg School of Public Health.

"The law is so vague it puts a virtual freeze on gun violence research," said a statement from Michael Halpern of the Union of Concerned Scientists. "It's like censorship: When people don't know what's prohibited, they assume everything is prohibited."

Many have called for a public health approach to gun violence like the highway safety measures, product changes and driving laws that slashed deaths from car crashes decades ago even as the number of vehicles on the road rose.

"The answer wasn't taking away cars," said Dr. Georges Benjamin, executive director of the American Public Health Association.

However, while much is known about vehicles and victims in crashes, similar details are lacking about gun violence.

Some unknowns:

—How many people own firearms in various cities and what types.

—What states have the highest proportion of gun ownership.

—Whether gun ownership correlates with homicide rates in a city.

—How many guns used in homicides were bought legally.

—Where juveniles involved in gun fatalities got their weapons.

—What factors contribute to mass shootings like the Newtown, Conn., one that killed 26 people at a school.

"If an airplane crashed today with 20 children and 6 adults there would be a full-scale investigation of the causes and it would be linked to previous research," said Dr. Stephen Hargarten, director of the Injury Research Center at the Medical College of Wisconsin.

"There's no such system that's comparable to that" for gun violence, he said.

One reason is changes pushed by the National Rifle Association and its allies in 1996, a few years after a major study showed that people who lived in homes with firearms were more likely to be homicide or suicide victims. A rule tacked onto appropriations for the Department of Health and Human Services barred use of funds for "the advocacy or promotion of gun control."

Also, at the gun group's urging, U.S. Rep. Jay Dickey, a Republican from Arkansas, led an effort to remove $2.6 million from the CDC's injury prevention center, which had led most of the research on guns. The money was later restored but earmarked for brain injury research.

"What the NRA did was basically terrorize the research community and terrorize the CDC," said Dr. Mark Rosenberg, who headed the CDC's injury center at the time. "They went after the researchers, they went after institutions, they went after CDC in a very big way, and they went after me," he said. "They didn't want the data to be collected because they were threatened by what the data were showing."

Dickey, who is now retired, said Wednesday that his real concern was the researcher who led that gun ownership study, who Dickey described as being "in his own kingdom or fiefdom" and believing guns are bad.

He and Rosenberg said they have modified their views over time and now both agree that research is needed. They put out a joint statement Wednesday urging research that prevents firearm injuries while also protecting the rights "of legitimate gun owners."

"We ought to research the whole environment, both sides — what the benefits of having guns are and what are the benefits of not having guns," Dickey said. "We should study any part of this problem," including whether armed guards at schools would help, as the National Rifle Association has suggested.

Association officials did not respond to requests for comment. A statement Wednesday said the group "has led efforts to promote safety and responsible gun ownership" and that "attacking firearms" is not the answer. It said nothing about research.

The 1996 law "had a chilling effect. It basically brought the field of firearm-related research to a screeching halt," said Benjamin of the Public Health Association.

Webster said researchers like him had to "partition" themselves so whatever small money they received from the CDC was not used for anything that could be construed as gun policy. One example was a grant he received to evaluate a community-based program to reduce street gun violence in Baltimore, modeled after a successful program in Chicago called CeaseFire. He had to make sure the work included nothing that could be interpreted as gun control research, even though other privately funded research might.

Private funds from foundations have come nowhere near to filling the gap from lack of federal funding, Hargarten said. He and more than 100 other doctors and scientists recently sent Vice President Joe Biden a letter urging more research, saying the lack of it was compounding "the tragedy of gun violence."

Since 1973, the government has awarded 89 grants to study rabies, of which there were 65 cases; 212 grants for cholera, with 400 cases, yet only three grants for firearm injuries that topped 3 million, they wrote. The CDC spends just about $100,000 a year out of its multibillion-dollar budget on firearm-related research, New York Mayor Michael Bloomberg has said.

"It's so out of proportion to the burden, however you measure it," said Dr. Matthew Miller, associate professor of health policy at the Harvard School of Public Health. As a result, "we don't know really simple things," such as whether tighter gun rules in New York will curb gun trafficking "or is some other pipeline going to open up" in another state, he said.

What now?

CDC officials refused to discuss the topic on the record — a possible sign of how gun shy of the issue the agency has been even after the president's order.

Health and Human Services Secretary Kathleen Sebelius said in a statement that her agency is "committed to re-engaging gun violence research."

Others are more cautious. The Union of Concerned Scientists said the White House's view that the law does not ban gun research is helpful, but not enough to clarify the situation for scientists, and that congressional action is needed.

Dickey, the former congressman, agreed.

"Congress is supposed to do that. He's not supposed to do that," Dickey said of Obama's order. "The restrictions were placed there by Congress.

"What I was hoping for ... is 'let's do this together,'" Dickey said.

___

Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Officials: 5 Americans Escaped from Algeria Terrorists

Five Americans who were at an Algerian natural gas facility when it was raided by al Qaeda linked terrorists are now safe and believed to have left the country, according to U.S. officials. At least three Americans, however, were being held hostage by the militants when the Algerian military mounted an rescue operation earlier today that reportedly resulted in casualties.

Reports that as many as 35 hostages and 15 Islamist militants at a BP joint venture facility in In Amenas have been killed during a helicopter raid have not been confirmed, though Algeria's information minister has confirmed that there were casualties. According to an unconfirmed report by an African news outlet, the militants say seven hostages survived the attack, including two Americans, one Briton, three Belgians and a Japanese national.

British Prime Minister David Cameron said that Algerian forces had attacked the compound, and that the situation "was ongoing."

"We face a very bad situation at this GP gas compound in Algeria," said Cameron. "A number of British citizens have been taken hostage. Already we know of one who has died. ... I think we should be prepared for the possibility for further bad news, very difficult news in this extremely difficult situation."

An unarmed U.S. Predator drone is now above In Amenas and is conducting surveillance. A U.S. official says the U.S. was not informed in advance by the Algerians of the raid they launched today.

In a statement, BP, a joint owner of the facility, said it had been told by both the British and Algerian governments that "the Algerian Army is attempting to take control of the In Amenas site."

"Sadly, there have been some reports of casualties but we are still lacking any confirmed or reliable information," said the statement. "There are also reports of hostages being released or escaping."

Algerian troops had surrounded the compound in the Sahara desert, where hostages from the U.S., Algeria, Norway, Japan, France and other countries are being held by terrorists who claim to be part of Al Qaeda and are led by a one-eyed smuggler known as Mr. Marlboro.

SITE Intel Group/AP Photo

Leon Panetta on Americans Held Hostage in Algeria Watch Video

Defense Secretary Leon Panetta told ABC News that as many as 100 hostages are being held, and that there may be seven or eight Americans among them. "Right now, we just really don't know how many are being held," said Panetta, who said information about the situation, including the total number of hostages and where they are being held, is "pretty sketchy." The kidnappers have released a statement saying there are "more than 40 crusaders" held "including 7 Americans."

U.S. officials had previously confirmed to ABC News that there were at least three Americans held hostage at the natural gas facility jointly owned by BP, the Algerian national oil company and a Norwegian firm at In Amenas, Algeria.

"I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation," said Panetta. "I don't think there's any question that [this was]a terrorist act and that the terrorists have affiliation with al Qaeda." He said the precise motivation of the kidnappers was unknown. "They are terrorists, and they will do terrorist acts."

The terror strike came without warning Wednesday morning when an estimated 20 gunmen first attacked a bus carrying workers escorted by two cars carrying security teams.

At least one worker was killed. The terrorists moved on to the residential compound where they are now holed up with the American and other western hostages, including Norwegian, French, British, and Japanese nationals.

There is growing concern this morning about the fate of the hostages, and intelligence officials say the situation is tense. Without the element of surprise, they say, a raid to free them will be very dangerous.
"They are expecting an attack and therefore, it's going to be very, very difficult for Algerian special forces to sneak in without being seen," said Richard Clarke, a former White House counter terrorism advisor and now an ABC News consultant.

Mr. Marlboro: Kidnapper, Smuggler

Intelligence officials believe the attack was masterminded by Mokhtar Belmokhtar, a rogue al Qaeda leader who also runs an African organized crime network that reportedly has made tens of millions of dollars in ransom from kidnappings and smuggling. He is known as Mr. Marlboro because of his success smuggling diamonds, drugs and cigarettes. Officials think it unlikely that Belmohktar would actually be in the middle of the hostage situation, but would be calling the shots from his base in Mali more than 1,000 miles away.

Belmokhtar fought in Afghanistan alongside the mujahideen against the Soviets in the 1990s, and lost an eye. He was formerly associated with al Qaeda's North African affiliate, al Qaeda in the Islamic Maghreb (AQIM), and was said to be a liaison with al Qaeda's international leadership. Belmokhtar split with AQIM late last year over what other Islamist militants considered his preference for lucre over jihad. He remains affiliated with al Qaeda, however, heading a breakaway group that calls itself the "Signers with Blood Brigade" or the "Veiled Brigade."

According to a Canadian diplomat who was held hostage by Belmokhtar, Mr. Marlboro is "very, very cold, very businesslike."

Robert Fowler was a UN diplomat in Africa when he was kidnapped and held hostage by Belmokhtar for four months in 2009.

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Sahara Islamists take hostages, spreading Mali war

ALGIERS/BAMAKO (Reuters) - Islamist fighters seized dozens of Western and Algerian hostages in a dawn raid on a natural gas facility deep in the Sahara on Wednesday and demanded France halt a new offensive against rebels in neighboring Mali.

Three people, among them one British and one French, were reported killed, but details were sketchy and numbers of those held at Tigantourine ranged from 41 foreigners - including perhaps seven Americans as well as Japanese and Europeans - to over 100 local staff, held separately and less closely watched.

What is clear is that with a dramatic counterpunch to this week's French build-up in Mali, the region's loosely allied, al Qaeda-inspired radicals have set Paris a daunting dilemma and spread fallout from Mali's hitherto obscure civil war far beyond northwest Africa, challenging Washington as well as Europeans and shutting down a major gas field that pumps energy to Europe.

The attack, which Algeria said was led by a veteran, Afghan-trained holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence, came just as French ground troops in Mali launched their first assault after six days of air strikes.

The United States, which like European powers endorsed France's decision to intervene last week against Islamists who have seized vast tracts of northern Mali, confirmed Americans were among the hostages and said it would work to "secure" them.

Western and African governments have been alarmed by a flow of weapons and fighters across the unmarked Sahara borders following the end of Libya's civil war in 2011 and fear that Mali, where Islamists drive the national army from the north nine months ago, could become an Afghan-style al Qaeda haven.

The militants, who said they had dozens of fighters in the gas field, issued no explicit threat but made clear to media in neighboring Mauritania the hostages' lives were at risk.

"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met and it is up to them to stop the brutal aggression against our people in Mali," read one statement from the group, which called itself the "Battalion of Blood".

In other comments carried by the Mauritanian news agency ANI, the group said its fighters had rigged explosives around the site and any attempt to free the hostages would lead to a "tragic end". The unusually large numbers of gunmen and hostages involved pose serious problems for any rescue operation.

After dark, ANI quoted a militant source saying fighters had repelled a raid by Algerian troops. He added that the hostage-takers' weaponry included mortars and anti-aircraft missiles.

AMERICANS

The militants said seven Americans were among the 41 foreign hostages - a figure U.S. officials said they could not confirm.

Norwegian energy company Statoil, which operates the gas field in a joint venture with Britain's BP and the Algerian state company Sonatrach, said nine of its Norwegian employees and three of its Algerian staff were being held.

Also reported kidnapped by various sources were five Japanese working for the engineering firm JGC Corp, a French national, an Austrian, an Irishman and a number of Britons.

The Algerian government, which fought a bloody civil war against Islamists in the 1990s, said it would not negotiate.

French media said the militants were also demanding that Algeria release dozens of Islamist prisoners from its jails.

Defense Secretary Leon Panetta said: "I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation."

He said he lacked firm information on whether there were links to the situation in Mali. Analysts pointed to shifting alliances and rivalries among Islamists in the region to suggest the hostage-takers may have a range of motives.

In their own statements, they condemned Algeria's secularist government for "betraying" its predecessors in the bloody anti-colonial war against French rule half a century ago by letting French warplanes fly over its territory to Mali. They also accused Algeria of shutting its border to Malian refugees.

Algerian Interior Minister Daho Ould Kablia told the state news agency APS there were about 20 hostage-takers led by Mokhtar Belmokhtar, an Algerian who fought against Soviet forces in Afghanistan in the 1980s and set up his own group in the Sahara recently after falling out with other al Qaeda leaders.

Some of those held at the facility, near the small town of In Amenas, close to the Libyan border and about 1,300 km (800 miles) inland, had sporadic contact with the outside world.

The head of a French catering company said he had information from a manager who supervised some 150 Algerian employees at the site. Regis Arnoux of CIS Catering told France's BFM television the local staff were being prevented from leaving but were otherwise free to move around inside and keep on working.

"The Westerners are kept in a separate wing of the base," Arnoux said. "They are tied up and are being filmed. Electricity is cut off, and mobile phones have no charge.

"Direct action seems very difficult ... Algerian officials have told the French authorities as well as BP that they have the situation under control and do not need their assistance."

MALI OFFENSIVE

Just days after a bold deployment of French troops to Mali, another former colony, that had largely silenced critics questioning his leadership after eight months in office, French President Francois Hollande faced a possible further escalation of the conflict, with Western targets at risk across Africa.

He has called for international support against insurgents who France says pose a threat to Africa and the West, and admits it faces a long struggle against well-equipped fighters who seized Timbuktu and other oasis towns in northern Mali and have imposed Islamic law, including public amputation and beheading.

Islamists have warned Hollande that he has "opened the gates of hell" for all French citizens.

French army chief Edouard Guillaud said ground forces were stepping up their operation to engage directly "within hours" the alliance of Islamist fighters, grouping al Qaeda's North African wing AQIM and Mali's home grown Ansar Dine and MUJWA.

Residents said a column of some 30 French Sagaie armored vehicles has set off toward rebel positions from the town of Niono, 300 km (190 miles) from the capital Bamako.

A Malian military source said French special forces units were taking part in the operation. Guillaud said France's strikes, involving Rafale and Mirage jet fighters, were being hampered because militants were sheltering among civilians.

Many inhabitants of northern Mali have welcomed the French attacks though some also fear being caught in the cross-fire.

Defense Minister Jean-Yves Le Drian acknowledged that France faced a hard slog, particularly in western Mali where AQIM's mostly foreign fighters have camps: "It's tough. We were aware from the beginning it would be a very difficult operation."

Hollande said on Tuesday that French forces would remain in Mali until stability returned to the West African nation. Hollande said France hoped, however, to hand over to African forces in its former colony, "in the coming days or weeks".

West African military chiefs met for a second day in Bamako to hammer out details of a U.N.-mandated deployment that had been expected to start only in September but was suddenly kick-started by French intervention. They said their aim was to send in the first units of a 2,000-man emergency force on Thursday.

Hollande's intervention in Mali brings risks for eight French hostages held by AQIM in the Sahara as well as the 30,000 French citizens living across West Africa. A French helicopter pilot was killed on Friday, France's only combat death so far.

The conflict in Mali, a landlocked state of 15 million twice the size of France, has displaced an estimated 30,000 people and raised concerns across mostly Muslim West Africa of a radicalization of Islam in the region.

"There is a great hope," one man said from Timbuktu, where he said Islamist fighters were trying to blend into civilian neighborhoods. "We hope that the city will be freed soon."

(Additional reporting by Pascal Fletcher and Andrew Callus in London, Balazs Koranyi in Oslo, Laurent Prieur in Nouakchott, Daniel Flynn in Dakar, John Irish, Catherine Bremer and Nick Vinocur in Paris, David Alexander in Rome and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Kevin Liffey)

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FAA grounds 787 Dreamliner in US

WASHINGTON: The Federal Aviation Administration grounded all US-registered Boeing 787 Dreamliner aircraft Wednesday to address a possible battery fire risk.

"As a result of an in-flight, Boeing 787 battery incident earlier today in Japan, the FAA will issue an emergency airworthiness directive (AD) to address a potential battery fire risk in the 787 and require operators to temporarily cease operations," the regulator said in a statement.

"Before further flight, operators of US-registered, Boeing 787 aircraft must demonstrate to the Federal Aviation Administration that the batteries are safe," it said.

The FAA said it would work with Boeing and carriers to develop a corrective action plan "to allow the US 787 fleet to resume operations as quickly and safely as possible."

United Airlines, the world's biggest airline, is currently the only US airline operating the 787, with six airplanes in service.

The warning was prompted by a battery incident during an All Nippon Airways flight that resulted in an emergency landing in Japan Wednesday, following a January 7 battery incident on an ANA 787 that occurred on the ground in Boston.

"The AD is prompted by this second incident involving a lithium ion battery. The battery failures resulted in release of flammable electrolytes, heat damage, and smoke on two Model 787 airplanes," the FAA said.

"The root cause of these failures is currently under investigation. These conditions, if not corrected, could result in damage to critical systems and structures, and the potential for fire in the electrical compartment."

The FAA said that it also is alerting the international aviation community to the action so other civil aviation authorities "can take parallel action to cover the fleets operating in their own countries."

- AFP/jc

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Nothing to show CBI was biased: Court

NEW DELHI: Even as the accused alleged that the CBI's probe into the Junior Basic Trained (JBT) teachers recruitment scam was not fair, the special court on Wednesday supported the agency and said there was nothing to show that the CBI was biased against anyone for any reason.

All the 55 accused, including Om Prakash Chautala and his MLA son Ajay Chautala, had alleged that the probe was not fair as there was no mention of the former Haryana chief minister's name even in the FIR.

Coming in defence of the agency, the court said the probe into the case was fair and there may be "some deficiency" in the investigation but there was nothing on record to suggest that it was biased.

"In this case, the investigating officer (IO) might have committed some mistakes or at some points there may be some deficiency in the investigation, but, when a case is investigated after three years of the incident, the investigating officer has to work under many limitations.

"However, at the same time, I would say that investigation was fair and there is nothing on record that it was biased against any of the accused persons for any reason including the political one," special CBI judge Vinod Kumar said.

The court dismissed the defence counsel's contentions of bias, saying, "FIR is not an evidence, rather it is a starting point of the investigation. It appears name of Om Prakash Chautala was not written in the FIR because he was a respectable political leader holding the highest post in the state of Haryana."

The court convicted all the accused for offences under various sections of the IPC and under the provisions of the Prevention of Corruption Act in the case relating to illegal recruitment of 3,206 junior teachers in the state in the year 2000.

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NRA President Defends Ad Attacking Obama

Jan 16, 2013 6:40pm

In an interview with ABC News this evening, NRA President David Keene said the gun-rights lobby is aggressively preparing for “battle” with the White House and Congress over President Obama’s sweeping new proposals to curb gun violence.

Keene criticized Obama’s announcement today, surrounded by four children from around the country, for “using kids to advance an ideological agenda.” And he expressed cautious confidence that few of the legislative measures would ultimately pass.

“It’s going to be very tough for the president to accomplish some of these things, but that doesn’t mean he can’t do it if he really turns it on,” Keene told ABC.

“All bets are off when a president really wants to go to war with you,” he said. “We’re gonna be there and we’re gonna fight it.”

Keene said passage of the 1994 assault weapons ban remains fresh in the minds of NRA leaders, noting that initial widespread congressional opposition gradually gave way to a narrow margin in favor, thanks in part to pressure from then-President Bill Clinton.

NRA members would hold accountable any politicians who “sell them out to some pie-in-the-sky scheme such as the president is proposing,” he said.

The group launched a new “Stand and Fight” advocacy campaign Tuesday night, opposing Obama’s gun control measures, anchored by a controversial new TV ad that began airing online and on the Sportsman Channel.

The ad calls President Obama an “elitist hypocrite” for sending his daughters to a private school with armed guards while questioning whether all other U.S. schools should have the same security measures. The White House blasted the ad as “repugnant and cowardly.”

“When the question is the protection of children, which is what this is all about… it’s perfectly legitimate to ask why some children should be protected and other children should not be protected,” Keene said, defending the ad.

“We were not talking about the president’s kids. We were talking about an elite class who criticizes others in their desire to be safe while making sure that they and their families and their children are always protected.

“We’re not talking about the Secret Service protection the president’s children enjoy — they ought to have that wherever they go,” he added.

Keene also ribbed Obama for using children as “props” for his announcement:  “We didn’t line them up on a stage and pat them on the shoulder while we were urging somebody to take our position,” he said.

The NRA has acknowledged some areas of common ground for curbing gun violence included the Obama proposal — namely beefed up resources for mental health care, better background check data and increased presence of school resource officers (police) at public schools.

But Keene said many of those steps were just “fig leaves.”

“What the president did is say … ‘I care about armed security.’ He can check off that box on the Gallup polls. He can say to the people concerned about it, ‘It’s part of my package.’ … He said the problem of severely, mentally ill — we’re going to study it.”

Obama called for federal aid to states for the hiring of up to 1,000 new resource officers and school counselors.  Currently, there are armed resource officers at 28,000 U.S. schools.

“That’s a drop in the ocean in terms of the problem,” Keene said. “It’s simply a fig leaf so he can pursue an anti-gun agenda. It has less to do with security and more to do with gun.”

SHOWS: World News

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France to stay in Mali until stability restored

BAMAKO/DUBAI (Reuters) - France pledged on Tuesday to keep troops in Mali until stability returned to the West African country, raising the specter of a long campaign against al Qaeda-linked rebels who held their ground despite a fifth day of air strikes.

Paris has poured hundreds of soldiers into Mali and carried out 50 bombing raids since Friday in the Islamist-controlled northern half of the country, which Western and regional states fear could become a base for terrorist attacks in Africa and Europe.

Defense Minister Jean-Yves Le Drian said that, despite French air support, Malian forces had not been able to dislodge Islamist fighters from the central Malian towns of Konna or Diabaly, just 350 km (220 miles) northeast of Bamako.

A column of French armored vehicles rolled northward from the dusty riverside capital of Bamako towards rebel lines on Tuesday, the first major northward deployment of ground troops. A military official declined to comment on their objective.

Thousands of African soldiers are due to take over the offensive. Regional armies are scrambling to accelerate an operation which was initially not expected until September and has been brought forward by France's surprise bombing campaign aimed at stopping a rebel advance on a strategic town last week.

President Francois Hollande, on a visit to the United Arab Emirates during which he sought Gulf states' financial backing for the African-led mission, suggested France would retain a major role in its former colony for months to come.

"We have one goal. To ensure that when we leave, when we end our intervention, Mali is safe, has legitimate authorities, an electoral process and there are no more terrorists threatening its territory," Hollande told a news conference.

Paris has said it plans to deploy 2,500 soldiers to bolster the Malian army and work with the intervention force provided by West African states.

AFRICAN TROOPS

West African Defense chiefs met in Bamako on Tuesday to approve plans for the swift deployment of 3,300 regional troops, foreseen in a United Nations-backed intervention plan. After failing to reach a final agreement, they adjourned their talks until Wednesday.

Nigeria pledged to deploy soldiers within 24 hours, and Belgium said it was sending transport planes and helicopters to help, but West Africa's armies need time to become operational.

Mali's north, a vast and inhospitable area of desert and rugged mountains the size of Texas, was seized last year by an Islamist alliance combining al Qaeda's north African wing AQIM with splinter group MUJWA and the home-grown Ansar Dine rebels.

Any delay in following up on the French air bombardments of Islamist bases and fuel depots with a ground offensive could allow the insurgents to slip away into the desert and mountains, regroup and counter-attack.

The rebels, who French officials say are mobile and well armed, have shown they can hit back, dislodging government forces from Diabaly on Monday.

Residents said the town was still under Islamist control on Tuesday despite a number of air strikes that shook houses.

An eye witness near Segou, to the south, told Reuters he had seen 20 French Special Forces soldiers driving toward Diabaly.

In Konna, whose seizure on Thursday sparked French involvement, residents said Islamist fighters were camped just outside town. Army troops had also withdrawn after entering the town on Saturday.

Malians have largely welcomed the French intervention, having seen their army suffer a series of defeats by the rebels.

"With the arrival of the French, we have started to see the situation on the front evolve in our favor," said Aba Sanare, a resident of Bamako.

QUESTIONS OVER READINESS

Aboudou Toure Cheaka, a senior regional official in Bamako, said the West African troops would be on the ground in a week.

The original timetable for the 3,300-strong U.N.-sanctioned African force - to be backed by western logistics, money and intelligence services - did not initially foresee full deployment before September due to logistical constraints.

Senegal, Burkina Faso, Niger, Nigeria and Guinea have all offered troops. Col. Mohammed Yerima, spokesman for Nigeria's Defense ministry, said the first 190 soldiers would be dispatched within 24 hours.

But Nigeria, which is due to lead the mission, has already cautioned that even if some troops arrive in Mali soon, their training and equipping will take more time.

Sub-Saharan Africa's top oil producer, which already has peacekeepers in Sudan's Darfur and is fighting a bloody and difficult insurgency at home against Islamist sect Boko Haram, could struggle to deliver on its troop commitment of 900 men.

One senior government adviser in Nigeria said the Mali deployment was stretching the country's military.

"The whole thing's a mess. We don't have any troops with experience of those extreme conditions, even of how to keep all that sand from ruining your equipment. And we're facing battle-hardened guys who live in those dunes," said the adviser, who asked not to be named.

FRENCH LINING UP SUPPORT

France, which has repeatedly said it has abandoned its role as policeman of its former African colonies, said on Monday that the U.S., Canada, Denmark and Germany had also offered logistical support.

Fabius has said Gulf Arab states would help the Mali campaign, while Belgium said on Tuesday it would send two C130 transport planes and two medical helicopters following a request from Paris.

A meeting of donors for the operation was expected to be held in Addis Ababa at the end of January.

Security experts have warned that the multinational intervention in Mali, couched in terms of a campaign by governments against "terrorism", could provoke a jihadist backlash against France and the West, and African allies.

U.S. officials have warned of links between AQIM, Boko Haram in Nigeria and al Shabaab Islamic militants fighting in Somalia.

Al Shabaab, which foiled a French effort at the weekend to rescue a French secret agent it was holding hostage, urged Muslims around the world to rise up against what it called "Christian" attacks against Islam.

"Our brothers in Mali, show patience and tolerance and you will win. War planes never liberate a land," Sheikh Ali Mohamud Rage, al Shabaab's spokesman, said on a rebel-run website.

U.S. officials said Washington was sharing information with French forces in Mali and considering providing logistics, surveillance and airlift capability.

"We have made a commitment that al Qaeda is not going to find any place to hide," U.S. Defense Secretary Leon Panetta told reporters as he began a visit to Europe. Panetta later said the U.S. had no plans to send troops to Mali.

One U.S. military source said the haphazard nature of French involvement reminded him of the U.S. entry into Afghanistan.

"I don't know what the French endgame is for this," the source said. "Air strikes are fine, but pretty soon you run out of easy targets. Then what do you do? What do you do when they head up into the mountains?"

(Additional reporting by Elizabeth Pineau and Raissa Kasolowsky in Abu Dhabi, Felix Onuah in Abuja and Tim Cocks in Lagos, Abdi Sheikh in Mogadishu, Michelle Nichols and Louis Charbonneau at the United Nations,; Richard Valdmanis in Dakar, Joe Bavier in Abidjan, Jan Vermeylen in Brussels; Writing by Pascal Fletcher, Daniel Flynn and David Lewis; editing by Richard Valdmanis, Giles Elgood and Will Waterman)

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Jeep to build cars in China with GAC

DETROIT: The iconic American Jeep brand will be manufactured in China and Italy's Fiat will also build more cars there through an expanded partnership announced Tuesday with Chinese carmaker GAC.

Guangzhou Automobile Group is already building the Fiat Viaggio and distributes imported models such as the Fiat 500, Freemont and Bravo in China.

The expansion will begin with introducing more models from the Fiat portfolio to China "in the coming years," the automakers said in a press release.

"After Fiat, the next brand planned to be localised by the GAC Fiat joint venture will be Chrysler Group's Jeep brand," the automakers said, noting this will include "production in China for (the) Chinese market only."

Chrysler's Jeep brand is currently exporting US-made vehicles to China and last year posted record sales both in China and worldwide.

The new deal "creates the basis for our JV to reach very ambitious objectives in Chinese market," said Zeng Qinghong, general manager of GAC Group.

Mike Manley, who heads both the Jeep Brand and Fiat's Asian operations, said the expansion "will allow us to unleash the potential of both our Fiat and Chrysler Group brands in China."

GAC and Fiat incorporated the joint venture in 2010 and launched the locally-built Viaggio in China in September.

GAC Fiat Automobiles is located in Changsha economic & technical development zone and handles the research and development, manufacturing, sales and after-sales services of vehicle, engines and parts & components.

The plant will have an annual production capacity of 140,000 vehicles in Phase I and will expand to an annual capacity of 250,000 to 300,000 vehicles in Phase II.

It currently is producing the Fiat Viaggio and the 1.4T-jet engine.

- AFP/jc

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