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 Liberals, leftists, Christians, more moderate Muslims and others had withdrawn from the assembly, saying their voices were not being heard.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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Mittal, France seek last-ditch solution on steel plant

PARIS: Steel tycoon Lakshmi Mittal and the French government sought a last-ditch solution Friday on the eve of the expiry of his deadline to the state to find a new buyer for a plant it has threatened to nationalise.

A number of scenarios were evoked and media reports were awash with names that could take control of the Florange plant in the eastern Lorraine region, where two blast furnaces have been closed by ArcelorMittal as it seeks to react to sagging demand for steel.

The two sides were said to be seeking a compromise in which ArcelorMittal gets to shut the two furnaces if it guarantees that the 650 workers whose jobs are on the line are redeployed.

"Between the two hypotheses, a third way is being sought," an informed source told AFP without giving any details.

France's Industrial Renewal Minister Arnaud Montebourg meanwhile met with workers from the plant who have camping outside his office to declare that President Francois Hollande would take a final decision on nationalisation.

He underscored that this option was "not a false hope but a solution that is serious, credible and lasting."

Montebourg was the first to brandish the nationalisation threat and said he wanted to expel from France Mittal, the world's 21st richest person according to Forbes.

The world's largest steelmaker, which wants to continue to operate the rest of the Florange site, has given the government until Saturday to find a new investor willing to take over the furnaces.

Montebourg has said there are interested investors, but only for the entire site, with a nationalisation as a means to sell the plant to another firm.

ArcelorMittal has warned that nationalisation of the plant would cast doubt on the future of all its operations in France, where it employs 20,000 people.

Both ArcelorMittal and the French presidency have indicated that the talks could carry on beyond the expiry of the deadline to Sunday.

Montebourg, widely regarded as a loose cannon whose mantra to promote national industry has even seen him don a Breton sailor top for a popular French magazine, has defended his threat to nationalise the plant.

"Barack Obama's nationalised. The Germans are nationalising. All countries are nationalising. I've also noticed the British nationalised six banks," he told CNBC after a meeting with trade unions in Paris.

The minister had said there was a new buyer interested in Florange, describing him as a "steelman, an industrialist, who is not a financier, who wants to invest his own money and who is ready to put almost 400 million euros into renovating this plant."

As the deadline approached, there was feverish media speculation on who the interested party could be.

The names ranged from Russia's Severstal, controlled by Russian billionaire Alexei Mordashov which in 2006 suffered a high-profile setback to acquire Arcelor, Italy's Riva Steel -- Europe's third-biggest producer -- to Tata Steel, the oldest steel firm in Mittal's native India.

A survey published Friday revealed that 53.6 percent of French people were unhappy with the way the government had handled the case.

However, 62.9 percent of the 986 people polled by BVA for the iTELE channel said they favoured temporary nationalisation.

Hollande's government has been caught in a bind over the plant, between his pledge to protect jobs and improve the competitiveness of French industry.

There have also been concerns the episode will dent France's credentials as an investment location. London's colourful mayor Boris Johnson has seized on the controversy to invite fleeing businessmen to invest in the British capital.

-AFP/ac

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HIV claimed 60,000 less lives last year in India

NEW DELHI: India recorded around 60,000 fewer deaths due to HIV in 2011 compared to 2007 while the overall number of people living with HIV has fallen by almost 1.7 lakhs during the same period.

There has been a 57% reduction in new HIV infections in India during the last decade with HIV prevalence among adults (15-49 years) dipping to 0.27% (2011) compared to 0.33% (2007).

The total number of people living with HIV/AIDS (PLHIV) in India is estimated at 21 lakhs last year. Children (below 15 years) account for 7% of all infections, and 86% are in the 15-49 age bracket.

Worryingly, of all the HIV infections, 39% (8.16 lakhs) are among women, most of whom being housewives.

The new HIV estimated released by Union health minister Ghulam Nabi Azad on Friday - on the eve of the World AIDS Day — says that around 1.16 lakh new HIV infections among adults and around 14,500 new infections among children had occurred last year.

Of the 1.16 lakh estimated new infections in 2011 among adults, the six high-prevalence states of Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra, Manipur and Nagaland accounted for 31% of new infections.

Considerable declines in HIV prevalence have been recorded among female sex workers at national level (5.06% in 2007 to 2.67% in 2011) and in most of the states, where long-standing targeted interventions have focused on behaviour change and increase in condom use. Declines have been achieved among men who have sex with men (7.41% in 2007 to 4.43% in 2011) also, though several pockets in the country show higher HIV prevalence among them with mixed results.

Reduction in HIV cases among Injecting Drug Users (IDUs) at the national level haven't been significant (7.23% in 2007 to 7.14% in 2011).

Besides north-eastern states where declines have been achieved, newer pockets of high HIV prevalence among IDUs have emerged over the last few years, mainly in states like Punjab, Chandigarh, Delhi, Mumbai, Kerala, Odisha, Madhya Pradesh, Uttar Pradesh and Bihar.

The report says that scale up of free anti retroviral treatment (ART) since 2004 has saved over 1.5 lakh lives till last year.

At the current pace of scale up of ART services, it is estimated to avert around 50,000-60,000 deaths annually in the next five years.

Azad told TOI, "India's progress in controlling the deadly virus has been remarkable. China, India and South Africa are the only three countries which have witnessed a fall in new HIV cases by over 50%. The recent UN general assembly on HIV unanimously hailed these countries for such progress."

In 2011, among the states, Manipur has shown the highest estimated adult HIV prevalence of 1.22%, followed by Andhra Pradesh (0.75%), Mizoram (0.74%), Nagaland (0.73%), Karnataka (0.52%), Goa (0.43%) and Maharashtra (0.42%).

Besides these, Odisha, Gujarat, Tamil Nadu, and Chandigarh have shown estimated adult HIV prevalence greater than the national prevalence at 0.27%.

The study said, "The adult HIV prevalence at national level has continued its steady decline from estimated level of 0.41% in 2001 through 0.35% in 2006 to 0.27% in 2011. Similar consistent declines are noted among both males and females at national level."

About 1.48 lakh people died of AIDS-related causes in India last year. Deaths among HIV infected children account for 7% of all AIDS-related deaths. Wider access to ART has led to 29% reduction in estimated annual AIDS-related deaths during NACP-III period (2007-2011).

Thanks to fall in India's HIV numbers, south-east Asia (11 countries, including India) has seen a 35% dip in new HIV infections, from 3.2 lakhs (2001) to 2.08 lakhs (2011). According to the World Health Organization (WHO), the HIV epidemic is clearly reversing. In 2011, 2.2 million people across the world were infected with HIV and 1.7 million died, half a million fewer new infections than 10 years ago, and 6 lakhs fewer deaths than 2005. However, the global health watch dog said the region also faces serious challenges. In the region, 46% of adults in need of treatment were enrolled in care and treatment by the end of 2011 - up from 12% in 2005. The coverage for HIV treatment in children is 39% in 2011 - up from 9% in 2005. Starting treatment early reduces morbidity and mortality due to HIV, and recent studies have also confirmed the prevention benefits of early treatment in uninfected regular sexual partners of HIV-infected individuals.

"The overall decline in the region is cause for increased optimism, however complacency now could become our greatest enemy," said Dr Samlee Plianbangchang, regional director of WHO south-east Asia.

"Those most vulnerable to HIV are also among the least empowered and HIV prevention care and treatment services for these people need to be made available and accessible," he added.

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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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Mo. Couple Wins Half of Powerball Jackpot

The lucky winners of half of the record $587.5 million Powerball jackpot have been identified as Mark and Cindy Hill of Dearborn, Mo., their working-class lives suddenly taking a turn to the financial stratosphere.

Cindy Hill, who with her husband has three adult sons and a 6-year-old daughter adopted from China, purchased the ticket at a Trex Mart gas station in Dearborn.

"I called my husband and told him, 'I think I am having a heart attack,'" Cindy Hill, 51, said, according to the Missouri Lottery. "I think we just won the lottery!"

Cindy, who worked as an office manager but was laid off in 2010, said that when she learned that a winning ticket was sold in Missouri, she dropped her daughter off at school, went to a convenience store for a winning numbers report, and checked her tickets in her car, according to the Missouri State Lottery.

"I was just telling my daughter the night before, 'Honey, that probably never happens (people winning)," Cindy said. "It's really going to be nice to spend time – not have to work – and be able to take trips with our family."

Cindy did mention that her husband has mentioned one extravagance -- a red Camaro, but today he said that he plans on keeping his same old pick-up truck.

The winning ticket was one of five Cindy purchased, for a total of $10. She let the computer quick-pick choose the numbers, according to the Missouri Lottery. As soon as she saw that she had a winning ticket, Cindy had her mother-in-law and husband double check it.

"You know it's the Show Me State, so he said, 'Show me,'" she said.

Appearing at a press conference today in Dearborn along with their three sons, aged 28, 30, 31, and their 6-year-old daughter, the Hills appeared overjoyed.

"We were blessed before we ever won this," Cindy said. "We want to go back to China, Ireland of course -- we're Irish, and wherever the win takes us."

Cindy said that she bought the winning ticket Wednesday at about 4:45 p.m.

"I stuck it in my car, and it stayed there all night," she said. "Now that I know that it was a winner I wouldn't have done that!"

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The Hills will take home $193,750,000 in lump sum payout -- which works out to $396,000 for each person in Dearborn, a town of 496.

The couple say that they will remain in Dearborn, and plan on launching a scholarship at the local high school.

Speculation began running wild in the small town when 52-year-old Hill, a factory worker, updated his Facebook account late Thursday, writing, "We are truly blessed, we are lucky winners of the Powerball."

Within hours, his family began celebrating, telling ABC News Hill is one of the two big winners.

"Just shocked. I mean, I thought we were all going to have heart attacks," Hill's mother, Shirley, said Thursday.

Hill's mother says her son and his wife have been struggling financially. Hill works in a hot dog and deli packaging factory, but it was unclear whether he showed up for work Thursday night.

"I'm very happy for him. He's worked hard in his life; well, not anymore," Hill's son Jason said. "Well, I hope we all stay very grounded, stay humble and don't forget who we are."

Missouri Lottery official Susan Goedde confirmed to ABC News Thursday that one of the winning tickets was purchased at a Trex Mart in Dearborn, about 30 miles north of Kansas City.

The winning numbers were 5, 23, 16, 22 and 29; Powerball was 6.

Hill did not respond to ABC News' requests for comment.
Meanwhile, employees and customers at Marlboro Village Exxon in Upper Marlboro, Md., said a tall, black, bald man held the winning ticket purchased in Arizona, according to ABC News affiliate WJLA-TV.

Surveillance cameras at the Upper Marlboro gas station captured the apparent winner walking into the store Thursday afternoon, digging into his chest pocket for his lottery tickets. After a few seconds of scanning the wad of tickets, the man began jumping up and down, pumping his arms.

The man gave the tickets to store manager Nagassi Ghebre, who says the six Powerball numbers were on the ticket, which the apparent winner said he bought in Arizona.

"And then he said, 'I got to get out of here,'" employee Freddie Lopez told WJLA.

But before leaving, the possible winner felt the need to check again to see whether he really had the ticket that millions of Americans dreamed of having.

"He says, 'Is this the right number? I don't know.' And I said, 'Yeah that's the numbers. You got them all,'" customer Paul Gaug told WJLA.

Employees and customers said the main stuck around for a few more seconds shouting, "I won," before leaving.

"He came back a minute later and said, 'I forgot to get my gas. What am I thinking?'" Lopez said.

The man drove out of the gas station in a black car and on a full tank of gas with a cash payout of $192.5 million coming his way.

"He said he lives in Maryland. I'm pretty sure," Gaug said.

The possible jackpot winner was wearing bright neon clothing and store employees told WJLA that he appeared to be a highway or construction worker.

Arizona lottery officials told WJLA that if the man does have the winning ticket, it needs to be redeemed within 180 days of the drawing in Arizona.

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Palestinians turn to U.N. for state recognition

UNITED NATIONS (Reuters) - The U.N. General Assembly is set to approve an implicit recognition of Palestinian statehood on Thursday despite threats by the United States and Israel to punish the Palestinian Authority by withholding funds for the West Bank government.

A resolution that would lift the Palestinian Authority's U.N. observer status from "entity" to "non-member state," like the Vatican, is expected to pass easily in the 193-nation General Assembly. At least 15 European states plan to vote for it.

Israel, the United States and a handful of other members are set to vote against what they see as a largely symbolic and counterproductive move by the Palestinians, which takes place on the 65th anniversary of the assembly's adoption of resolution 181 on the partition of Palestine into Jewish and Arab states.

Granting Palestinians the title of "non-member observer state" falls short of full U.N. membership - something the Palestinians failed to achieve last year. But it would allow them access to the International Criminal Court and other international bodies, should they choose to join them.

"The ICC issue is what the Israelis are really worried about," a U.N. official said on condition of anonymity. "They know this whole process isn't really symbolic except for that."

Palestinian President Mahmoud Abbas has been leading the campaign to win support for the resolution, which follows an eight-day conflict this month between Israel and Islamists in the Gaza Strip, who are pledged to Israel's destruction and oppose his efforts toward a negotiated peace.

The U.S. State Department made a last-ditch effort to get Abbas to reconsider, but the Palestinian Authority, which exercises limited self-rule in the Israeli-occupied West Bank, gave no sign that it was turning back.

Secretary of State Hillary Clinton repeated to reporters in Washington on Wednesday the U.S. view that the Palestinian move was misguided and efforts should focus instead on reviving the stalled Middle East peace process.

"The path to a two-state solution that fulfills the aspirations of the Palestinian people is through Jerusalem and Ramallah, not New York," she said. "The only way to get a lasting solution is to commence direct negotiations."

Acknowledging strong European support for the Palestinians, Clinton said on Thursday: "We and our European partners agree on the most fundamental issues and share a common objective - two states living side by side in peace and security."

Speaking at an annual U.N. event in support of the Palestinians, Palestinian Foreign Minister Riyad al-Maliki appealed to U.N. member states to support Thursday's U.N. resolution. He also repeated his support for peace with Israel.

"Despite diminishing hopes and the decline of the situation on the ground due to Israel violations, we remain committed to the two-state solution and our hand remains extended in peace," he said at U.N. headquarters in New York.

State Department spokeswoman Victoria Nuland reiterated U.S. warnings that the move could cause a reduction of U.S. economic support for the Palestinians. The Israelis have also warned they might take significant deductions out of monthly transfers of duties that Israel collects on the Palestinians' behalf.

PALESTINIANS RALLY IN WEST BANK, GAZA

Despite its fierce opposition, Israel seems concerned not to find itself diplomatically isolated. It has recently toned down threats of retaliation in the face of wide international support for the initiative, notably among its European allies.

"The decision at the United Nations will change nothing on the ground," Israeli Prime Minister Benjamin Netanyahu said in Jerusalem. "It will not advance the establishment of a Palestinian state. It will delay it further.

But U.N. diplomats say that Israel's reaction might not be so measured if the Palestinians seek ICC action against Israel on charges of war crimes, crimes against humanity or other crimes the court would have jurisdiction over.

Russian Deputy Foreign Minister Mikhail Bogdanov was quoted by the Interfax news agency as calling on Washington and Israel to avoid "any hasty and destructive decisions."

"Supporting the Palestinian authorities is not only in the interest of the Palestinian side, but also of Israel and the whole international community that is longing for a peaceful political settlement," he said.

The European Union, a key donor for the Palestinians, has made clear it will not curtail aid after Thursday's vote.

Flag-waving Palestinians thronged the squares of the West Bank and Gaza Strip before Thursday's vote. In a rare show of unity, Abbas's Islamist rivals Hamas, who have ruled Gaza since a brief civil war in 2007, let backers of the president's Fatah movement hold demonstrations there.

Peace talks have been stalled for two years, mainly over Israeli settlements in the West Bank, which have expanded despite being deemed illegal by most of the world. There are 4.3 million Palestinians in the West Bank and Gaza.

In the draft resolution, the Palestinians have pledged to relaunch the peace process immediately following the U.N. vote, expected sometime after 3 p.m. (2000 GMT) on Thursday.

With strong support from the developing world that makes up the majority of U.N. members, it is virtually assured of securing more than the requisite simple majority. Palestinian officials hope for more than 130 yes votes.

Abbas has focused on securing as many votes as possible from Europe, and his efforts appear to have paid off.

Austria, Denmark, Norway, Finland, France, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, Portugal, Spain, Sweden and Switzerland all pledged to support the resolution. Britain said it was prepared to vote yes, but only if the Palestinians fulfilled certain conditions.

The fiercely pro-Israel Czech Republic was planning to vote against the move, dashing European hopes of avoiding any no votes that would create a three-way split on the continent into supporters, abstainers and opposers.

It was unclear whether some of the many undecided Europeans would join the Czechs. Germany, Hungary, the Netherlands, Estonia and Lithuania plan to abstain.

(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 bureaux in Europe and elsewhere; Editing by Cynthia Osterman)

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EU backs Palestinian state even if split on UN vote

BRUSSELS: The European Union reiterated the bloc's support for a Palestinian state Thursday despite splits between its 27 member states over granting upgraded status to the Palestinians at the United Nations.

"The EU has repeatedly expressed its support and wish for Palestine to become a full member of the United Nations as part of a solution to the conflict," EU foreign policy chief Catherine Ashton said in a statement.

"The EU reiterates its readiness to recognise a Palestinian state when appropriate," she added.

But her statement underlined that "only a political solution to the conflict can bring lasting security, peace and prosperity to Palestinians and Israelis."

Despite hopes the 27 EU nations might line up on a single position at the UN -- for, against, or abstaining -- the bloc remained divided hours before the 2000 GMT vote.

The EU is Israel's leading economic partner and the Palestinians' leading donor. But in the end, the bloc split three ways: "yes", "no" and "abstain".

While three EU nations had been expected to vote against -- the Czech Republic, Germany and the Netherlands, in the end, Germany and the Netherlands decided to abstain.

The Czechs seemed to be the only EU member to have come out against the Palestinian bid. A two-state solution could only be reached through direct negotiations between Israel and the Palestinians, said a Czech ministry statement Thursday.

Security Council member France was the first European state to come out in favour of the Palestinian bid, on Tuesday. It was followed by Belgium, Denmark, Greece, Italy and Spain. Diplomats expect around 15 EU nations to back the Palestinians.

But another Security Council member, Britain, said it was likely to abstain.

Foreign minister William Hague said Wednesday that Britain would abstain unless the Palestinians undertook to resume talks with Israel and foreswear any move to take Israel to the International Criminal Court (ICC).

The Baltic states Latvia, Estonia and Lithuania will all abstain, expressing regret the EU couldn't muster a common stance.

Hungary also announced plans to abstain, as did Slovenia and Bulgaria, which said "the proposed resolution will not change for better the situation between Israel and the Palestinians."

Latvian Foreign Minister Edgars Rinkevics said it was "disappointing" the EU was unable to reach a common position.

But a senior EU official said the divisions did not mirror deep-seated differences between the EU states.

"We see pretty well eye-to-eye. Even if there is a three-way split there is a good understanding for the way forward on the peace process," said the official, speaking on condition of anonymity.

Ashton's statement said "a comprehensive negotiated peace, which is a fundamental interest of the EU, as well as the parties in the region, must and can be achieved on the basis of a two-state solution.

"Looking ahead after today's vote, it is important for all parties and actors involved to work towards a settlement of the conflict with renewed purpose and sense of urgency," Ashton said.

She urged both sides in the conflict "to refrain from actions" that could undermine the peace process.

"The European Union urges both sides to seek constructive ways to overcome the current obstacles for a resumption of direct negotiations without delay or preconditions."

The Palestinians are poised to gain the backing of a majority of the UN's 193 member states, despite the opposition of the United States, Israel and some other countries.

-AFP/ac

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CAG punches holes in MoD’s offsets policy

NEW DELHI: India will remain among the world's largest arms importers for the foreseeable future. With DRDO, defence PSUs and ordnance factories flopping to get their act together, the CAG has now punched holes even in the implementation of the much-touted defence offsets policy.

The audit watchdog also slammed DRDO, often in the dock for huge time and cost overruns in crucial defence projects, for lacking "transparency and objectivity'', undertaking "unfruitful investments'' and committing "irregularities'' in getting sanctions for new programmes.

It was in July 2005 that the defence ministry came out with the new offsets policy to develop the indigenous defence industrial base (DIB). Under it, any foreign armament company bagging an arms deal over Rs 300 crore had to plough back at least 30% of the contract value back into India as offsets.

With India inking a flurry of defence deals, it has already attracted over $4.27 billion through defence "offsets'' since 2007. The figure will zoom upwards with several mega defence deals in the pipeline. The around $20 billion MMRCA (medium multi-role combat aircraft) project to acquire 126 fighters, for instance, specifies a 50% offset obligation on the foreign vendor.

But the latest CAG report tabled in Parliament on Thursday, after examining 16 offset contracts worth Rs 18,445 crore, said the policy was floundering to strengthen self-reliance in defence preparedness.

For one, the policy is ambiguous, with the audit watchdog also questioning waivers given to foreign arms companies from fulfilling their offset obligations. For another, the overall monitoring mechanism for directing offset activity towards desired objectives remains "ineffective'' and "only a paper exercise''.

"MoD needs to ensure clarity in the offset provisions so as to leave little room for ambiguity in their interpretation. The monitoring mechanism also needs to be reviewed to ensure effective implementation,'' the CAG report said.

India still imports 70% of its military requirements. After several complaints last year that India's fledgling DIB was incapable of absorbing the huge offsets, MoD was forced to liberalize the offsets policy to include investments in the country's civil aerospace, homeland security and training sectors as well.

MoD, however, has dragged its feet in implementing recommendations, first submitted by the Rama Rao Committee in 2008, to overhaul DRDO and its network of over 50 labs to ensure that cutting-edge weapon systems can be delivered in time to armed forces.

The CAG report also pointed out that DRDO was splitting sanctions for its projects to avoid seeking approvals from the requisite financial authorities. "The audit findings underscore that efforts of MoD to bring in transparency and objectivity in the functioning of its departments remain unachieved as of now,'' CAG said.

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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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Obama Lunches With Romney as 'Cliff' Talks Falter

President Obama and Mitt Romney met face to face today for the first time since the election, breaking bread at the White House as talks over the looming "fiscal cliff" appeared to be faltering on Capitol Hill.

The lunch between former rivals, served in an elegant private dining room in the West Wing, lasted just over an hour, with Romney seen coming and going from a side entrance in a black SUV. The former GOP nominee arrived without fanfare and sans entourage. He opened his own car door both times.

"I haven't looked at the menu, but I bet it was and is quite tasty," White House spokesman Jay Carney said of the meal, "because [the chefs] know how to prepare very fine meals."

Administration officials, who promised a readout of the meeting, have said there was no formal agenda or a "specific ask" or assignment for Romney. The men planned to smooth things over after a bruising campaign, away from the glare of cameras and nosy reporters.

Governor Romney "presented some ideas during the course of the campaign that I actually agree with, and so it'd be interesting to talk to him about something like that," Obama said at a news conference on Nov. 14. "There may be ideas that he has with respect to jobs and growth that can help middle-class families that I want to hear."

Pablo Martinez Monsivais/AP Photo

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Obama also said he is also interested in identifying "some ways that we can potentially work together."

Romney, who has kept a relatively low profile since losing the election on Nov. 6, has not publicly addressed Obama's post-election overtures or the prospect of working together. Both men have little personal history and had a chilly relationship during the campaign.

Senior Romney campaign strategist Eric Fehrnstrom called Obama's lunch invitation "gracious" and said that Romney was "glad to accept." The governor also met earlier Thursday in Washington with former running mate Rep. Paul Ryan of Wisconsin.

The Obama-Romney detente comes as talks between the White House and congressional Republicans to prevent the economy from going over the "fiscal cliff" of mandatory spending cuts and tax increases set for Jan. 1 appeared to hit a snag.

Treasury Secretary Timothy Geithner, the lead White House negotiator in the talks, and White House legislative chief Rob Nabors held a flurry of meetings today with congressional leaders of both parties in the House and Senate.

But following sessions, top Republicans poured cold water on what had been budding optimism of progress toward a deal.

"No substantive progress has been made over the last two weeks," said House Speaker John Boehner at a press conference.

"We know what the menu is. What we don't know is what the White House is willing to do to get serious about solving our debt crisis," he said, accusing the administration of failing to detail plans for significant spending cuts to correspond with desired tax revenue increases.

Obama and Boehner spoke by phone Wednesday night, sources told ABC News, their second conversation in four days. Boehner described it as "direct and straightforward," but suggested "disappointment" with Obama's reticence to waver on hiking tax rates on the wealthy.

Senate Minority Leader Mitch McConnell, R-Ky., in advance of his meeting with Geithner, said everything the White House has put down on the table so far has been "counterproductive," and he hopes that the Treasury Secretary brings "a specific plan from the president" with him today.

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