Egyptians protest after draft constitution raced through

CAIRO (Reuters) - Tens of thousands of Egyptians protested against President Mohamed Mursi on Friday after an Islamist-led assembly raced through approval of a new constitution in a bid to end a crisis over the Islamist leader's newly expanded powers.

"The people want to bring down the regime," they chanted in Tahrir Square, echoing the chants that rang out in the same place less than two years ago and brought down Hosni Mubarak.

Mursi said a decree halting court challenges to his decisions, which sparked eight days of protests and violence by Egyptians calling him a new dictator, was "for an exceptional stage" and aimed to speed up the democratic transition.

"It will end as soon as the people vote on a constitution," he told state television while the constituent assembly was still voting on a draft, which the Islamists say reflects Egypt's new freedoms. "There is no place for dictatorship."

But the opposition cried foul. Liberals, leftists, Christians, more moderate Muslims and others had withdrawn from the assembly, saying their voices were not being heard.

Even in the mosque where Mursi said Friday prayers some opponents chanted "Mursi: void" before sympathizers surrounded him shouting in support, journalists and a security source said.

Tens of thousands gathered across the country, filling Tahrir Square and hitting the streets in Alexandria and other cities, responding to opposition calls for a big turnout. Rival demonstrators clashed after dark in Alexandria and the Nile Delta town of Al-Mahala Al-Kobra, some hurling rocks in anger.

An opposition leaflet distributed on Tahrir urged protesters in Cairo to stay overnight before Saturday's rallies by Islamists; the Muslim Brotherhood and its allies said they would avoid the square during their demonstrations backing Mursi.

The disparate opposition, which has struggled to compete with well-organized Islamists, has been drawn together and reinvigorated by the crisis. Tens of thousands had also protested on Tuesday, showing the breadth of public anger.

POTENT MACHINE

But Islamists have a potent political machine and the United States has looked on warily at the rising power of a group it once kept at arms length now ruling a nation that has a peace treaty with Israel and is at the heart of the Arab Spring.

Protesters said they would push for a 'no' vote in a constitutional referendum, which could happen as early as mid-December. If the new basic law were approved, it would immediately cancel the president's decree.

"We fundamentally reject the referendum and constituent assembly because the assembly does not represent all sections of society," said Sayed el-Erian, 43, a protester in Tahrir and member of a party set up by opposition figure Mohamed ElBaradei.

ElBaradei said in a statement the constitution had "lost legitimacy" and called for ending the polarization of Egypt.

The plebiscite on the constitution is a gamble based on the Islamists' belief they can mobilize voters again after winning every election held since Mubarak was toppled in February 2011.

Despite the big numbers opposed to him, Mursi can count on backing from the disciplined Brotherhood and Islamist allies, as well as many Egyptians who are simply exhausted by the turmoil.

"He just wants us to move on and not waste time in conflicts," said 33-year-old Cairo shopkeeper Abdel Nasser Marie. "Give the man a chance and Egypt a break."

But Mursi needs the cooperation of judges to oversee the vote, and many have been angered by a decree from Mursi they said undermined the judiciary. Some judges are on strike.

The assembly concluded the vote after a 19-hour session, faster than many expected, approving all 234 articles of the draft, covering presidential powers, the status of Islam, the military's role and human rights.

It introduces a presidential term limit of eight years - Mubarak served for 30. It also bring in a degree of civilian oversight over the military - though not enough for critics.

An Egyptian official said Mursi was expected to approve the document on Saturday and then has 15 days to hold a referendum.

"This is a revolutionary constitution," said Hossam el-Gheriyani, head of the assembly, urging members to campaign for the new constitution across Egypt, after the all-night session.

DEEPENING DIVISIONS

Critics argue it is an attempt to rush through a draft they say has been hijacked by the Muslim Brotherhood, which backed Mursi for president in a June election, and its Islamist allies.

Two people have been killed and hundreds injured in protests since the decree was announced on November 22, deepening the divide between the newly empowered Islamists and their critics.

Seeking to placate opponents, Mursi welcomed criticism but said there was no place for violence. "I am very happy that Egypt has real political opposition," he told state television.

He said Egypt needed to attract investors and tourists. The crisis threatens to derail a fragile economic recovery after two years of turmoil. Egypt is waiting for the International Monetary Fund to finalize a $4.8 billion loan to help it out.

An alliance of opposition groups pledged to keep up protests and said broader civil disobedience was possible to fight what it described as an attempt to "kidnap Egypt from its people".

Several independent newspapers said they would not publish on Tuesday in protest. One of the papers also said three private satellite channels would halt broadcasts on Wednesday.

The draft injects new Islamic references into Egypt's system of government but keeps in place an article defining "the principles of sharia" as the main source of legislation - the same phrase found in the previous constitution.

The president can declare war with parliament's approval, but only after consulting a national defense council with a heavy military and security membership. That was not in the old constitution, used when Egypt was ruled by ex-military men.

Critics highlighted other flaws, such as articles pertaining to the rights of women and freedom of speech.

A new parliamentary election cannot be held until a new constitution is passed. Egypt has been without an elected legislature since a court ordered the dissolution of the Islamist-dominated lower house in June.

(Additional reporting by Yasmine Saleh and Marwa Awad; Writing by Edmund Blair; Editing by Philippa Fletcher and Alastair Macdonald)

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Euro pushes higher; yen falls after stimulus announced

NEW YORK: The euro surged against the dollar Friday, topping the $1.30 level before giving back most of the ground to end only slightly higher.

At $1.2982 at around 2300 GMT, it was still the European currency's best level in five weeks, finishing up from $1.2978 late Thursday.

There was little news to provoke any firm moves, and analysts said the euro could move lower next week as the Greek bond buyback program opens and the European Central Bank sees more room from a lower inflation rate to ease monetary policy.

"With five major central bank interest rate decisions on the docket for the following week, the European Central Bank may have the largest impact on the currency market as headlines surrounding the debt crisis continue to drag on investor confidence," said David Song of DailyFX.

"As the EU prepares to release the details of the Greek bond buyback program, there's speculation that the ECB will provide further monetary assistance to alleviate the downside risks for the economy."

In addition, he added, with inflation on a trajectory to fall below 2.0 percent, "the central bank may show a greater willingness to lower the benchmark interest rate further."

The Japanese government's pre-election announcement of a new 880-billion-yen ($10.7 billion) stimulus package sent the yen lower.

The euro pushed to 107.07 yen from 106.58 yen, and the dollar gained to 82.48 yen from 82.10.

In other currencies, the dollar gained slightly to 0.9280 Swiss francs, and the British pound slipped to $1.6015, from $1.6043 Thursday.

-AFP/ac

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Around 40% states still have more than 5% as stamp duty

NEW DELHI: The Comptroller and Auditor General's (CAG) audit into Centre's urban renewal programme - Jawaharlal Nehru National Urban Renewal Mission (JNNURM) -- has shown that 40% of states and Union Territories have failed to rationalize stamp duty to 5% for property registration. The defaulting states include Delhi, Haryana, West Bengal, Karnataka, Kerala and Chhattisgarh.

High stamp duty discourages property registration at actual or market value and thereby increases scope of black money in the realty sector.

As per JNNURM norms, stamp duty was to be brought down to 5% or less, including surcharges by local municipal bodies, during implementation of the programme. "It was expected that a reduction in the rate would help develop a healthy real estate market, by providing a boost to the economy, and reduce black money. It was expected that reduction in stamp duty rates would lead to an increase in revenue both for the states and urban local bodies," the report said.

The CAG found that out of 30 states/UTs selected for scrutiny, only 16, including Andhra Pradesh, Chandigarh, Gujarat, Maharashtra, Punjab, Uttar Pradesh and Rajasthan had either 5% or less as stamp duty.

The report mentioned that in the case of Uttarakhand, stamp duty was reduced to 5% for men and 3.5% for women. On the contrary, in Haryana, stamp duty is 7% (5% plus 2% as local body surcharge) for men and 5% for women, including 2% surcharge for local bodies

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Kenya village pairs AIDS orphans with grandparents

NYUMBANI, Kenya (AP) — There are no middle-aged people in Nyumbani. They all died years ago, before this village of hope in Kenya began. Only the young and old live here.

Nyumbani was born of the AIDS crisis. The 938 children here all saw their parents die. The 97 grandparents — eight grandfathers among them — saw their middle-aged children die. But put together, the bookend generations take care of one another.

Saturday is World AIDS Day, but the executive director of the aid group Nyumbani, which oversees the village of the same name, hates the name which is given to the day because for her the word AIDS is so freighted with doom and death. These days, it doesn't necessarily mean a death sentence. Millions live with the virus with the help of anti-retroviral drugs, or ARVs. And the village she runs is an example of that.

"AIDS is not a word that we should be using. At the beginning when we came up against HIV, it was a terminal disease and people were presenting at the last phase, which we call AIDS," said Sister Mary Owens. "There is no known limit to the lifespan now so that word AIDS should not be used. So I hate World AIDS Day, follow? Because we have moved beyond talking about AIDS, the terminal stage. None of our children are in the terminal stage."

In the village, each grandparent is charged with caring for about a dozen "grandchildren," one or two of whom will be biological family. That responsibility has been a life-changer for Janet Kitheka, who lost one daughter to AIDS in 2003. Another daughter died from cancer in 2004. A son died in a tree-cutting accident in 2006 and the 63-year-old lost two grandchildren in 2007, including one from AIDS.

"When I came here I was released from the grief because I am always busy instead of thinking about the dead," said Kitheka. "Now I am thinking about building a new house with 12 children. They are orphans. I said to myself, 'Think about the living ones now.' I'm very happy because of the children."

As she walks around Nyumbani, which is three hours' drive east of Nairobi, 73-year-old Sister Mary is greeted like a rock star by little girls in matching colorful school uniforms. Children run and play, and sleep in bunk beds inside mud-brick homes. High schoolers study carpentry or tailoring. But before 2006, this village did not exist, not until a Catholic charity petitioned the Kenyan government for land on which to house orphans.

Everyone here has been touched by HIV or AIDS. But only 80 children have HIV and thanks to anti-retroviral drugs, none of them has AIDS.

"They can dream their dreams and live a long life," Owens said.

Nyumbani relies heavily on U.S. funds but it is aiming to be self-sustaining.

The kids' bunk beds are made in the technical school's shop. A small aquaponics project is trying to grow edible fish. The mud bricks are made on site. Each grandparent has a plot of land for farming.

The biggest chunk of aid comes from the United States President's Emergency Plan for AIDS Relief (PEPFAR), which has given the village $2.5 million since 2006. A British couple gives $50,000 a year. A tree-growing project in the village begun by an American, John Noel, now stands six years from its first harvest. Some 120,000 trees have already been planted and thousands more were being planted last week.

"My wife and I got married as teenagers and started out being very poor. Lived in a trailer. And we found out what it was like to be in a situation where you can't support yourself," he said. "As an entrepreneur I looked to my enterprise skills to see what we could do to sustain the village forever, because we are in our 60s and we wanted to make sure that the thousand babies and children, all the little ones, were taken care of."

He hopes that after a decade the timber profits from the trees will make the village totally self-sustaining.

But while the future is looking brighter, the losses the orphans' suffered can resurface, particularly when class lessons are about family or medicine, said Winnie Joseph, the deputy headmaster at the village's elementary school. Kitheka says she tries to teach the kids how to love one another and how to cook and clean. But older kids sometimes will threaten to hit her after accusing her of favoring her biological grandchildren, she said.

For the most part, though, the children in Nyumbani appear to know how lucky they are, having landed in a village where they are cared for. An estimated 23.5 million people in sub-Saharan Africa have HIV as of 2011, representing 69 percent of the global HIV population, according to UNAIDS. Eastern and southern Africa are the hardest-hit regions. Millions of people — many of them parents — have died.

Kitheka noted that children just outside the village frequently go to bed hungry. And ARVs are harder to come by outside the village. The World Health Organization says about 61 percent of Kenyans with HIV are covered by ARVs across the country.

Paul Lgina, 14, contrasted the difference between life in Nyumbani, which in Swahili means simply "home," and his earlier life.

"In the village I get support. At my mother's home I did not have enough food, and I had to go to the river to fetch water," said Lina, who, like all the children in the village, has neither a mother or a father.

When Sister Mary first began caring for AIDS orphans in the early 1990s, she said her group was often told not to bother.

"At the beginning nobody knew what to do with them. In 1992 we were told these children are going to die anyway," she said. "But that wasn't our spirit. Today, kids we were told would die have graduated from high school."

___

On the Internet:

http://www.trees4children.org/

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3 Dead After Attack at Wyo. Community College

Three people are dead after an attack at Casper College, a Wyoming community college, that may have involved a type of bow and arrow.

The college was shut down Friday morning after the attack.

"Emergency Alert: All classes and activities are cancelled today," read a message posted on the school's website.

Initial calls came in just after 9 a.m. reporting a "traumatic injury" on campus, according to a statement provided by local law enforcement to ABC News. Officers found "multiple victims" and the school was immediately placed on lockdown.

Alan Rogers/Casper Star-Tribune/AP Photo

Three people were found dead. One was a Casper College faculty member and another was a suspect who died of "apparent suicide," according to the statement.

The suspect, authorities said, "was not a current student at Casper College and the incident does not appear to be school motivated."

"There were no firearms involved in the crime," they said, "and the victim's injuries were caused by a sharp-edged weapon."

Police told Wyoming station KCWY that one of the victims was stabbed with a "bow-and-arrow-type" weapon.

The school of around 5,000 students is located in Casper, the state's second-largest city. It was founded in 1945, according to the school's website.

Calls to Casper Police Chief Chris Walsh and school spokesman Rich Fujita were not returned Friday afternoon.

The lockdown was later lifted. The school's website said campus travel was "now permitted" and that counselors were available at the school's Gateway Building.

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Palestinians win implicit U.N. recognition of sovereign state

UNITED NATIONS (Reuters) - The 193-nation U.N. General Assembly on Thursday overwhelmingly approved the de facto recognition of a sovereign Palestinian state after Palestinian President Mahmoud Abbas called on the world body to issue its long overdue "birth certificate."

There were 138 votes in favor, nine against and 41 abstentions. Three countries did not take part in the vote to upgrade the Palestinian Authority's observer status at the United Nations to "non-member state" from "entity."

The assembly approved the upgrade despite threats by the United States and Israel to punish the Palestinians by withholding funds for the West Bank government. U.N. envoys said Israel might avoid harsh retaliation as long as the Palestinians did not seek to join the International Criminal Court.

The much-anticipated vote came after Abbas denounced Israel for its "aggressive policies and the perpetration of war crimes" from the U.N. podium, remarks that elicited a furious response from the Jewish state.

"Sixty-five years ago on this day, the United Nations General Assembly adopted resolution 181, which partitioned the land of historic Palestine into two states and became the birth certificate for Israel," Abbas told the 193-nation assembly after receiving a standing ovation.

"The General Assembly is called upon today to issue a birth certificate of the reality of the State of Palestine," he said.

Israeli Prime Minister Benjamin Netanyahu responded quickly, condemning Abbas' critique of Israel as "hostile and poisonous," and full of "false propaganda."

"These are not the words of a man who wants peace," Netanyahu also said in a statement released by his office in Israel.

At least 17 European nations voted in favor of the Palestinian resolution, including Austria, France, Italy, Norway and Spain. Abbas had focused his lobbying efforts on Europe, which supplies much of the aid the Palestinian Authority relies on. Britain, Germany and others chose to abstain.

The Czech Republic was unique in Europe, joining the United States, Israel, Canada, Panama and tiny Pacific Island states likes Nauru, Palau and Micronesia in voting against the move.

After the vote, U.S. Ambassador to the United Nations Susan Rice called for the immediate resumption of peace talks.

"The Palestinian people will wake up tomorrow and find that little about their lives has changed save that the prospects of a durable peace have only receded," she said.

"The United States calls upon both the parties to resume direct talks without preconditions on all the issues that divide them and we pledge that the United States will be there to support the parties vigorously in such efforts," Rice said.

She added that both parties should "avoid any further provocative actions in the region, in New York or elsewhere."

(Andrew Quinn in Washington, Noah Browning in Ramallah, Jeffrey Heller in Jerusalem, Michelle Nichols in New York, Robert Mueller in Prague, Gabriela Baczynska and Reuters bureau in Europe and elsewhere; Editing by Peter Cooney)

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Euro benefits from US 'fiscal cliff' hopes

NEW YORK: The euro rose against the dollar Thursday, boosted by hopes that US politicians will find a compromise to avoid the year-end "fiscal cliff" that could jolt the economy into recession.

With investors' appetite for risk whetted, the euro bought $1.2978 at 2200 GMT, up from $1.2939 at the same time Wednesday.

The European unit rose against the Japanese currency, to 106.58 yen from 106.14 yen late Wednesday.

The dollar edged up to 82.10 yen from 82.03 yen.

"Investors want to believe that the full brunt of the US fiscal cliff is going to be somehow averted," said CurrencyThoughts.com.

David Solin at Foreign Exchange Analytics noted that the euro had softened somewhat from earlier highs, citing "some mixed comments from US officials in regards to these negotiations on the fiscal cliff."

US Treasury Secretary Timothy Geithner met with congressional leaders of the Democratic and Republican parties seeking progress on a deal.

Republican speaker of the House of Representatives John Boehner said, after meeting with Geithner, there had been "no substantive progress" in averting drastic tax hikes and spending cuts that take effect in January.

Solin said the risk market remained quite strong as investors believed that lawmakers would forge a longer-term debt-reduction budget to avoid the fiscal cliff.

"It doesn't make a lot of sense to me, they might be underestimating" the situation, he added.

The European currency also found support from the European Commission approving a plan to restructure some of Spain's banks Wednesday, said Nick Bennenbroek at Wells Fargo Bank.

The EC cleared the restructuring of four Spanish banks -- Bankia, Novagalicia, CatalunyaCaixa and Banco de Valencia -- paving the way for Spain to receive 37 billion euros ($48 billion) in aid next month.

The dollar fell against the Swiss currency, fetching 0.9274 francs, compared with 0.9300 late Wednesday.

Meanwhile, the British pound rose to $1.6043 from $1.6013.

-AFP/ac

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CPM accuses Congress of allowing disruption in Parliament

NEW DELHI: The CPM on Thursday accused the Congress of allowing disruption of both Houses of Parliament so that it could marshal the numbers in case of a vote on FDI in multi-brand retail. The Lok Sabha was disrupted for four days and Rajya Sabha for five consecutive days as the opposition, including the BJP and Left parties, demanded a discussion and vote on the issue.

"The government has agreed to a discussion in both Houses, but five days (in Rajya Sabha) need not have been lost," CPM MP Sitaram Yechury said.

About two weeks ago, Left leaders had announced that they would move notices under Rule 184 in Lok Sabha and Rule 167 in Rajya Sabha that involve voting after discussion on a matter. Yechury signed the notice in Rajya Sabha and his party colleague Basudeb Acharia sent the notice in Lok Sabha seeking the two Houses reject the government's decision to allow FDI in multi-brand retail.

In an editorial in the latest issue of the party mouthpiece People's Democracy, CPM said Congress allowed disruption of Parliament "to buy time in order to marshal a majority in case they are forced by the opposition to take a vote on the floor of the House" on FDI in multi-brand retail. The Congress-led UPA government has been reduced to a minority after Trinamool Congress withdrew support.

Though the government is quite sure of winning a vote on FDI in Lok Sabha, it is not so confident in Rajya Sabha. If the government wins the vote in one House but loses in the other, it can still go ahead with the decision to allow FDI in multi-brand retail as the opinion of the House is not binding on the government.

Constitutional expert Subhash Kashyap said, "There may be political embarrassment for the government depending on the language of the notice. But it would not have legal, constitutional or procedural consequences."

Yechury though said if the government has a conscience, it would call a joint session of Parliament as happened for the Prevention of Terrorism Act (POTA), 2002. POTA was defeated in Rajya Sabha but the then NDA government won in a joint session of Parliament.

The CPM also pointed out that amendments to Sections 47 and 48 of FEMA, 1999 to allow FDI in retail must be tabled in Parliament. Under the Constitution, neither the executive (government) nor the judiciary can make or amend laws.

"The sole authority for making laws, or, amending existing laws, is the Parliament. Thus, the decision to permit FDI in retail trade can only be taken by the legislature (Parliament) and the authority to do so is beyond the mandate of the executive as decreed by our Constitution," the CPM said in its mouthpiece.

The party believes the government was forced to follow rules and amended the FEMA regulations under pressure from the Supreme Court. The CPM hoped if the due process of law was not followed, then the SC "will surely invoke its constitutional authority of judicial review".

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Clinton releases road map for AIDS-free generation

WASHINGTON (AP) — In an ambitious road map for slashing the global spread of AIDS, the Obama administration says treating people sooner and more rapid expansion of other proven tools could help even the hardest-hit countries begin turning the tide of the epidemic over the next three to five years.

"An AIDS-free generation is not just a rallying cry — it is a goal that is within our reach," Secretary of State Hillary Rodham Clinton, who ordered the blueprint, said in the report.

"Make no mistake about it, HIV may well be with us into the future but the disease that it causes need not be," she said at the State Department Thursday.

President Barack Obama echoed that promise.

"We stand at a tipping point in the fight against HIV/AIDS, and working together, we can realize our historic opportunity to bring that fight to an end," Obama said in a proclamation to mark World AIDS Day on Saturday.

Some 34 million people worldwide are living with HIV, and despite a decline in new infections over the last decade, 2.5 million people were infected last year.

Given those staggering figures, what does an AIDS-free generation mean? That virtually no babies are born infected, young people have a much lower risk than today of becoming infected, and that people who already have HIV would receive life-saving treatment.

That last step is key: Treating people early in their infection, before they get sick, not only helps them survive but also dramatically cuts the chances that they'll infect others. Yet only about 8 million HIV patients in developing countries are getting treatment. The United Nations aims to have 15 million treated by 2015.

Other important steps include: Treating more pregnant women, and keeping them on treatment after their babies are born; increasing male circumcision to lower men's risk of heterosexual infection; increasing access to both male and female condoms; and more HIV testing.

The world spent $16.8 billion fighting AIDS in poor countries last year. The U.S. government is the leading donor, spending about $5.6 billion.

Thursday's report from PEPFAR, the President's Emergency Plan for AIDS Relief, outlines how progress could continue at current spending levels — something far from certain as Congress and Obama struggle to avert looming budget cuts at year's end — or how faster progress is possible with stepped-up commitments from hard-hit countries themselves.

Clinton warned Thursday that the U.S. must continue doing its share: "In the fight against HIV/AIDS, failure to live up to our commitments isn't just disappointing, it's deadly."

The report highlighted Zambia, which already is seeing some declines in new cases of HIV. It will have to treat only about 145,000 more patients over the next four years to meet its share of the U.N. goal, a move that could prevent more than 126,000 new infections in that same time period. But if Zambia could go further and treat nearly 198,000 more people, the benefit would be even greater — 179,000 new infections prevented, the report estimates.

In contrast, if Zambia had to stick with 2011 levels of HIV prevention, new infections could level off or even rise again over the next four years, the report found.

Advocacy groups said the blueprint offers a much-needed set of practical steps to achieve an AIDS-free generation — and makes clear that maintaining momentum is crucial despite economic difficulties here and abroad.

"The blueprint lays out the stark choices we have: To stick with the baseline and see an epidemic flatline or grow, or ramp up" to continue progress, said Chris Collins of amFAR, the Foundation for AIDS Research.

His group has estimated that more than 276,000 people would miss out on HIV treatment if U.S. dollars for the global AIDS fight are part of across-the-board spending cuts set to begin in January.

Thursday's report also urges targeting the populations at highest risk, including gay men, injecting drug users and sex workers, especially in countries where stigma and discrimination has denied them access to HIV prevention services.

"We have to go where the virus is," Clinton said.

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Palestinians Win Statehood Status at U.N.

The U.N. General Assembly voted today to approve Palestinians' request to be upgraded to a "non-member observer state," defying opposition by the U.S. and Israel.

Before the vote, Palestinian President Mahmoud Abbas told the General Assembly that it "is being asked today to issue the birth certificate of Palestine."

Of the 193 countries in the General Assembly 138 voted to recognize Palestine, nine voted against and 41 abstained.

The historic vote recognizes Palestine as a state and gives Palestine the right to join U.N. agencies. It opens the door for Palestine to become a party to the International Criminal Court, allowing them to bring cases against Israel.

Israel and the U.S. argued that the vote is purely symbolic, would change nothing on the ground, would hurt peace talks and could affect U.S. funding.

U.S. Ambassador to the U.N. Susan Rice downplayed the significance of the victorious resolution.

"Today's grand pronouncement will soon fade and the Palestinian people will wake up tomorrow and find that little about their lives has changed, save that the prospects of a durable peace have only receded," Rice said.

"The United States therefore calls upon both the parties to resume direct talks without preconditions on all the issues that divide them and we pledge that the United States will be there to support the parties vigorously in such efforts. The United States will continue to urge all parties to avoid any further provocative actions - in the region, in New York and elsewhere," she said.

Hazem Bader/AFP/Getty Images

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Israeli Prime Minister Benjamin Netanyahu's office dismissed the significance of the vote.

"This is a meaningless decision that will not change anything on the ground. Prime Minister Benjamin Netanyahu has made it clear that there will be no establishment of a Palestinian state without a settlement that ensures the security of Israel's citizens," the statement said.

"He will not allow a base for Iranian terrorism to be established in Judea and Samaria [the West Bank], in addition to those that have [already] been established in Gaza and Lebanon... By going to the U.N., the Palestinians have violated the agreements with Israel and Israel will act accordingly," the Israeli statement said.

After the results were announced, U.N. Secretary-General Ban Ki-Moon urged leaders of Israel and Palestine to resume peace talks.

"Today's vote underscores the urgency of the resumption of negotiations," he said.

The vote went ahead despite calls to Abbas from President Obama and other U.S. officials to abandon the bid. Secretary of State Hillary Clinton said Wednesday that only direct Palestinian negotiations with Israel can bring about any real solution.

"We have made very clear to the Palestinian leadership -- you know I met with President Abbas just last week -- that we oppose Palestinian efforts to upgrade their status at the U.N. outside of the framework of negotiations to achieve a two-state solution," Clinton said, "because no matter what happens at the United Nations, it will not produce the outcome that this government, this president and certainly I strongly support."

The vote today falls short of triggering the law in Congress that automatically cuts all U.S. aid to Palestinian Authority and any programs in the Palestinian Territories, as well as aid to any organizations that recognize Palestine as a state. Non-member observer status falls short of being as being accepted as a "member state," which would allow Palestine to have full voting rights in the U.N. General Assembly, something Congress is vehemently opposed to if done outside of talks with Israel.

ABC News' Sarah Parnass and ABC Pollster Gary Langer contributed to this report.

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