$1M Reward for Capture of Fugitive Ex-Cop Dorner

A $1 million reward was offered today for information leading to the arrest of Christopher Dorner, as authorities in Big Bear, Calif., scaled back their search for the disgruntled ex-cop, who is suspected in three revenge killings.

"This is the largest local reward ever offered, to our knowledge," Los Angeles Police Chief Charlie Beck said at a news conference today. "This is an act of domestic terrorism. This is a man who has targeted those that we entrust to protect the public. His actions cannot go unanswered."

The money for the reward was pooled by businesses, government, local law enforcement leaders and individual donors, Beck said.

PHOTOS: Former LAPD Officer Suspected in Shootings

The reward comes on the fourth day of a manhunt for Dorner, who has left Southern California on edge after he allegedly went on a killing spree last week to avenge his firing from the police force. Dorner outlined his grievances in a 6,000 word so-called "manifesto" and said he will keep killing until the truth is known about his case.

Dorner's threats have prompted the LAPD to provide more than 50 law enforcement families with security and surveillance detail, Beck said.

Authorities are chasing leads, however they declined to say where in order to not impede the investigation.

Dorner's burned-out truck was found Thursday near Big Bear Lake, a popular skiing destination located 80 miles northeast of Los Angeles.

Irvine Police Department/AP Photo

Manhunt for Alleged Cop Killer Heads to California Mountains Watch Video

Christopher Dorner Search: Officials Search for Ex-officer in the Mountains Watch Video

Hundreds of Officers on Hunt for Alleged Cop Killer Watch Video

Investigators found two AR-15 assault rifles in the burned-out truck Dorner abandoned, sources told ABC News.

The truck had a broken axle, which may be the reason he decided to set fire to it, the police sources said.

Full Coverage: Christopher Jordan Dorner

Officers have spent the past couple of days going door-to-door and searching vacant cabins. The manhunt was scaled back to 25 officers and one helicopter in the resort town today, according to the San Bernadino Sheriff's Office.

On Saturday, Beck announced he would reopen the investigation into Dorner's firing but said the decision was not made to "appease" the fugitive ex-cop.

"I feel we need to also publicly address Dorner's allegations regarding his termination of employment, and to do so I have directed our Professionals Standards Bureau and my Special Assistant for Constitutional Policing to completely review the Dorner complaint of 2007; To include a re-examination of all evidence and a re-interview of witnesses," Beck said. "We will also investigate any allegations made in his manifesto which were not included in his original complaint."

Dorner is suspected of killing Monica Quan and her fiancé Keith Lawrence last Sunday in their car in the parking lot of their Irvine, Calif., condominium complex. Both were struck with multiple gunshot wounds.

Quan's father, Randall Quan, was a retired captain with the LAPD and attorney who represented Dorner before a police review board that led to Dorner's dismissal from the force in 2008.

On Wednesday, after Dorner was identified as a suspect in the double murder, police believe he ambushed two Riverside police officers, killing one and wounding the other.

The next day, Randall Quan reported he received a taunting call from a man claiming to be Dorner who told him that he "should have done a better job of protecting his daughter," according to court documents documents.

Anyone with information leading to the arrest of Christopher Dorner is asked to call the LAPD task force at 213-486-6860.

ABC News' Dean Schabner, Jack Date, Pierre Thomas, Jason Ryan and Clayton Sandell contributed to this report.

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Football: Ronaldo hat-trick eases Madrid past Sevilla

MADRID: Cristiano Ronaldo scored his 20th hat-trick as a Real Madrid player as the Spanish champions cruised to a 4-1 victory over Sevilla on Saturday.

Ronaldo was even involved in the goal he didn't score as he squared for Karim Benzema to open the scoring on 18 minutes before smashing in his first of the evening eight minutes later.

And the former Manchester United man warmed up for Wednesday's meeting with his old club in the Champions League in perfect fashion as he scored twice more from close range in the first 14 minutes of the second-half.

Madrid had to be play the final 24 minutes with 10 men though as Gonzalo Higuain saw a needless second yellow card for a late challenge on Fernando Navarro.

But despite a late consolation goal from Manu del Moral they comfortably held on to cut the gap on Barcelona at the top of the table to 13 points.

Jose Mourinho had taken the chance to rest a number of key players including Xabi Alonso, Sami Khedira and Mesut Ozil with midweek's Champions League duties in mind and it was one of those who were handed a rare start in Kaka who shone early on.

The Brazilian had an early effort well held by Beto in the Sevilla goal before only another fine intervention by the keeper stopped Ronaldo converting Kaka's cut-back moments later.

Luka Modric then saw an effort curl just wide but, despite some nice play in possession by the visitors, the opening goal was coming for Madrid and it duly arrived when Benzema was left with the easiest finishes from a yard out after Ronaldo's driven cross had rebounded for the Frenchman off Fernando Navarro.

Kaka then had another shot saved by Beto before Ronaldo took centre-stage to double the hosts' advantage as he cut inside onto his left foot and thumped a rasping shot into the far corner of the net.

Sevilla refused to give in though and had a number of half-chances to pull one back before the break as Federico Fazio headed over when unmarked from a corner before Diego Lopez was forced into a sharp save low to his right by Jose Antonio Reyes.

If it hadn't been for Beto though the Andalusians could have gone in further behind at half-time as the Portuguese keeper just managed to keep out a swerving Ronaldo free-kick before getting down well to hold a Sergio Ramos header.

There was nothing Beto could do 38 seconds after the restart though as poor defending from Fazio allowed Ronaldo to latch onto a long ball and fire low into the corner.

The Portuguese captain soon had his 36th goal of the season as a classic counter-attack from Mourinho's men saw Ronaldo feed Higuain and the former converted the Argentine's low cross at the back post.

Alvaro Morata replaced Ronaldo as Mourinho decided to keep his star man fresh for Wednesday.

However, a fine evening for the champions was soured in the final quarter.

After Higuain had been sent-off, Sevilla had a number of chances and eventually got the goal their efforts deserved when Moral fired an angled drive into Lopez's bottom left-hand corner three minutes from time.

- AFP/jc

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Dhule riots: Custody of six policemen extended

DHULE: The police custody of the six cops who were arrested on Friday on charges of theft and breaking open a stall during the Dhule riots of January 6 was on Saturday extended by three more days, even as senior lawyers termed the charges "too mild" and demanded action against the officers who ordered firing and cops who fired above the waist. The policemen have been identified as Liladhar Sonawane, Ganesh Patil, Chabulal Vende and D S Sonawane (SRPF) and police constables Jawahar Pawar and Yogesh Shinde.

The police on Saturday said they were preparing to arrest four more men, all civilians, who were suspected to be involved in looting during the riots. "We have the names and addresses of three of them. They are under the scanner, and once the legal procedure is complete, they will be taken into custody," investigating officer Ghanshyam Patil said, adding that an investigation was also on against one more person.

Terming the arrest of the police personnel on charges of looting and theft as an eyewash, local residents and senior lawyers on Saturday demanded immediate action against the officials who ordered the firing and the police personnel who fired at people above the waist. "This is a very serious offence. However, instead of taking action against them, police personnel involved in looting were arrested. While the arrests are a positive development, the policemen alleged to have been involved in murder should also be arrested," said lawyer P C Pawar who on February 6, filed a PIL in the Dhule sessions court on behalf of the relatives of those killed in the police firing. The PIL demands action against the SDM and DYSP who ordered the police firing.

Advocate N D Surywanshi also echoed similar concerns. "Yesterday's arrest is an eyewash. Also, the sections of IPC imposed on them are not appropriate for the crime they have committed. There are stricter sections in the Penal Code. They should be tried under those," he said.

Six people were allegedly killed in police firing and more than 200 injured in the violence that broke out at 2.30 pm on January 6. The violence, which continued for about two hours, was allegedly triggered after a small dispute broke out over the non-payment of a bill at a food stall in the Macchi Bazaar area of the town. The food-stall owner allegedly assaulted a youth who refused to pay the bill. The youth left the place but returned with some his friends, following which violence broke out.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

___

Online:

CDC: http://www.cdc.gov/flu/

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After Blizzard, Northeast Begins to Dig Out

The Northeast began the arduous process of cleaning up after a fierce storm swept through the region leaving behind up to three feet of snow in some areas.

By early this morning, 650,000 homes and businesses were without power and at least five deaths were being blamed on the storm: three in Canada, one in New York and one in Connecticut, The Associated Press reported.

The storm dumped snow from New Jersey to Maine, affecting more than 25 million people, with more than two feet falling in areas of Massachusetts, Rhode Island and New Hampshire. The Postal Service closed post offices and suspended mail delivery today in New England.

As the storm waned, officials in the hardest hit areas cautioned residents to remain indoors and off the roads to ease the clean-up.

Massachusetts was hard hit by the storm, with more than two feet of snow in Boston and even more in coastal areas. State police and national guard troops helped rescue more than 50 stranded motorists and even helped deliver a baby girl, according to Massachusetts Gov. Deval Patrick.

Patrick enacted the first statewide driving ban since the 1978 blizzard, which left 27 inches of snow and killed dozens. The ban was to be lifted at 4 p.m. today, the governor said.

However, Patrick cautioned residents to act with extreme caution even after the ban is over.

"Stay inside and be patient," Patrick said.

In Massachusetts a boy reportedly died of carbon monoxide poisoning as he helped his father shovel snow on Saturday, according to ABCNews.com affiliate WCVB-TV in Boston.

For residents along the coast, the waning snowfall didn't mean the end of the storm. Storm surges along the Massachusetts coastline forced some residents out of their homes Saturday morning.

"We've got 20-foot waves crashing and flooding some homes," Bob Connors on Plum Island told WCVB. "We have power and heat and all that. We just have a very angry ocean. In my 33 years, I've never seen the seas this high."

Darren McCollester/Getty Images

Blizzard Shuts Down Parts of Connecticut, Massachusetts Watch Video

Blizzard 2013: Power Outages for Hundreds of Thousands of People Watch Video

Blizzard 2013: Northeast Transportation Network Shut Down Watch Video

FULL COVERAGE: Blizzard of 2013

In Connecticut, Gov. Dannel Malloy declared a state of emergency and closed all roads in the state. The state police responded to more than 1,600 calls over the last 24 hours and the governor called up an additional 270 National Guard members.

"If you're not an emergency personnel that's required to be somewhere, stay home," Malloy said.

Overnight, snow fell at a rate of up to five to six inches per hour in parts of Connecticut. In Milford, more than 38 inches of snow had fallen by this morning.

In Fairfield, Conn. firefighters and police officers on the day shift were unable to make it to work, so the overnight shift remained on duty.

PHOTOS: Blizzard Hits Northeast

The wind and snow started affecting the region during the Friday night commute.

In Cumberland, Maine, the conditions led to a 19-car pile-up and in New York, hundreds of commuters were stranded on the snowy Long Island Expressway. Police and firefighters were still working to free motorists early this morning.

"The biggest problem that we're having is that people are not staying on the main portion or the middle section of the roadway and veering to the shoulders, which are not plowed," said Lt. Daniel Meyer from the Suffolk County Police Highway Patrol.

In New York, authorities are digging out hundreds of cars that got stuck overnight on the Long Island Expressway.

Bob Griffith of Syosset, N.Y., said he tried leave early to escape the storm, but instead ended up stuck in the snow by the side of the road.

"I tried to play it smart in that I started early in the day, when it was raining," said Griffith. "But the weather beat us to the punch."

Suffolk County Executive Steven Bellone said the snow had wreaked havoc on the roadways.

"I saw state plows stuck on the side of the road. I've never seen anything like this before," Bellone said.

However, some New York residents, who survived the wrath of Hurricane Sandy, were rattled by having to face another large and potentially dangerous storm system with hurricane force winds and flooding.

"How many storms of the century can you have in six months?" said Larry Racioppo, a resident of the hard hit Rockaway neighborhood in Queens, New York.

READ: Weather NYC: Blizzard Threatens Rockaways, Ravaged by Sandy

Snowfall Totals

In New York, a little more than 11 inches fell in the city.

By this morning, New York Mayor Michael Bloomberg said nearly all of the primary roads had been plowed and the department of sanitation anticipated that all roads would be plowed by the end of the day.

"It looks like we dodged a bullet, but keep in mind winter is not over," said Bloomberg.

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Tennis: Nadal advances to semi-finals in comeback event

VINA DEL MAR, Chile: Rafael Nadal, playing his first event after a seven-month injury layoff, advanced to the semi-finals of the $410,200 Vina del Mar ATP claycourt tournament with a straight-sets triumph on Friday.

The 11-time Grand Slam champion from Spain ousted seventh-seeded countryman Daniel Gimeno-Traver 6-1, 6-4.

Top seed Nadal will face either French third seed Jeremy Chardy or Italian sixth seed Paolo Lorenzi for a spot in the final.

Until this week, Nadal had not played since a shock second-round exit from Wimbledon in June.

A torn tendon and inflammation in his left knee kept the former world number one out of the London Olympics and the 2012 US Open and a virus delayed his return.

Nadal broke Gimeno-Traver's first service game of the match for a 2-0 lead and again in the sixth game before holding to claim the first set after 33 minutes.

In the second set, Nadal broke in the ninth game and then fought off four break points, the only ones he faced in the match, before holding serve in the final game to advance after 84 minutes.

For the match, Nadal connected on 68 percent of his first serves, winning 29-of-44 points on his first serve and 14-of-20 on his second serve.

Nadal, who turns 27 in June, plans to compete in claycourt events at Brazil and Mexico before playing ATP Masters hardcourt events at Indian Wells and Miami and then heading to Europe for clay events in Monte Carlo, Barcelona and Rome ahead of the French Open, where Nadal has claimed the crown a record seven times.

- AFP/de

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'Friends' among 100s on ex-President's 'pleasure trips'

MUMBAI: On each of her well-documented tours, former President Pratibha Patil travelled with close to 100 people, which included, besides officials, members of her family as well as friends who joined in as 'Presidential guests'.

Patil found herself in an embarrassing situation when it was discovered that the government had stopped footing a bill of Rs 225 crore for her jaunts as the country's head.

Now, an RTI response throws light on how she ended up burdening the exchequer with such a mind-boggling travel tab. With her she took not just family but also friends for good company.

Picture this: Between September 30 and October 7, 2011, up to 100 Indians travelled with Patil to Switzerland and Austria. Besides officials, her entourage included her husband, daughter and son-in-law, grandchildren, and one Santosh Rathore, who traveled as the President's guest.

Again, just a few months ago, when she visited a few east Asian countries, Presidential guests Rahul Patil, Omsingh Shekhawat and Prithviraj Solanki joined in for a week.

Most such trips lasted 7-10 days and usually comprised 100 people. "This is a gross misuse of tax-payers' hard-earned money by none other than head of the nation," said RTI activist Subhash Chandra Agrawal.

"The President's secretariat, after CIC directions, has now reluctantly provided complete details of the large fleet of accompanying persons with then President of India, Pratibha Patil, on her numerous trips in India and abroad, confirming her taking friends and relations (other than spouse) on these pleasure trips made in the name of official trips."

She made 23 trips to foreign lands during her five-year tenure starting July 2007. Even on her domestic trips, lasting 2-3 days, she rarely travelled alone.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

___

Online:

CDC: http://www.cdc.gov/flu/

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'Stay Home': Northeast Shuts Down as Blizzard Hits

A blizzard of possibly historic proportions is set to strike the Northeast, starting today and could bring more than two feet of snow and strong winds that could shut down densely populated cities such as Boston and New York City.

A storm from the west will join forces with one from the south to form a nor'easter that will sit and spin just off the East Coast, affecting more than 43 million Americans. Wind gusts will reach 50 to 60 mph from Philadelphia to Boston.

"[It] could definitely be a historic winter storm for the Northeast," Adrienne Leptich of the National Weather Service in Upton, N.Y., said. "We're looking at very strong wind and heavy snow and we're also looking for some coastal flooding."

The snow began falling in New York City shortly before 7 a.m. ET. The snow is expected to mix with some sleet and then turn back into snow after 3 p.m.

Airlines have started shutting down operations between 2 p.m. and 5 p.m. at major airports in the New York area as well as in Boston, Portland, Maine, Providence, and other Northeastern airports. More than 4,000 flights have been cancelled on Friday and Saturday, according to FlightAware. Airlines hope to resume flights by Saturday afternoon.

New York City is expecting up to 14 inches, which is expected to start this morning with the heaviest amounts falling at night and into Saturday. Wind gusts of 55 mph are expected in New York City and Cape Cod, Mass., could possibly see 75 mph gusts.

PHOTOS: Northeast Braces for Snowstorm

Weather Forecast: Northeast Braces for Monster Blizzard Watch Video

Winter Storm to Hit Northeast With Winds and Snow Watch Video

Boston, Providence, R.I., Hartford, Conn., and other New England cities canceled school today. Boston and other parts of New England could see more than 2 feet of snow by Saturday.

Massachusetts Governor Deval Patrick declared a state of emergency Friday afternoon and announced a ban on all traffic from roads after 4 p.m. It is believed that the last time the state enacted such a ban was during the blizzard of 1978.

Beach erosion and coastal flooding is possible from New Jersey to Long Island, N.Y., and into New England coastal areas. Some waves off the coast could reach more than 20 feet.

"Stay off the streets of our city. Basically, stay home," Boston Mayor Tom Menino warned Thursday.

Blizzard warnings were posted for parts of New Jersey and New York's Long Island, as well as portions of Massachusetts, Rhode Island and Connecticut, including Hartford, New Haven, Conn., and Providence. The warnings extended into New Hampshire and Maine.

To the south, Philadelphia was looking at a possible 4 to 6 inches of snow.

Thousands of flights have already been canceled in anticipation of the storm. Amtrak said its Northeast trains will stop running this afternoon.

Bruce Sullivan of the National Weather Service says travel conditions will deteriorate fairly rapidly Friday night.

"The real concern here is there's going to be a lot of strong winds with this system and it's going to cause considerable blowing and drifting of snow," he said.

Parts of New York, still reeling from October's Superstorm Sandy, are still using tents and are worried how they will deal with the nor'easter.

"Hopefully, we can supply them with enough hot food to get them through before the storm starts," Staten Island hub coordinator Donna Graziano said.

New York City Mayor Michael Bloomberg said plows and 250,000 tons of salt were being put on standby.

"We hope forecasts are exaggerating the amount of snow, but you never can tell," Bloomberg said Thursday.

Residents of the Northeast have already begun to hit stores for groceries and tools to fight the mounting snow totals.

The fire department was called in to a grocery store in Salem, Mass., because there were too many people in the store Thursday afternoon trying to load up their carts with essential items.

"I'm going to try this roof melt stuff for the first time," Ian Watson of Belmont, Mass., said. "Just to prevent the ice dam. ... It's going be ugly on that roof."

ABC News' Max Golembo and The Associated Press contributed to this report.

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Iran's Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden last week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in Munich on Saturday.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed after the overthrow of Iran's pro-Western monarchy in 1979 and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL 'ON THE TABLE'

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

In Washington, U.S. State Department spokeswoman Victoria Nuland brushed off Khamenei's remarks and urged Iran to show up in Almaty "prepared to discuss real substance" either in a group setting or in bilateral talks.

"As the Iranians well know, the ball is in the Iranians' own court," she told reporters.

"We've always said that action on the Iranian side would be matched by action on our side, so it's really up to Iran to engage if it wants to see sanctions eased," said Nuland, adding that failure to address the nuclear concerns would bring more pressure on Tehran.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel says the prospect of a nuclear-armed Iran threatens its existence, given Tehran's refusal to recognize the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ... are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his November re-election may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams, and Paul Eckert in Washington; Editing by William Maclean, Jon Boyle and Mohammad Zargham)

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