U.N. set to implicitly recognize Palestinian state, despite threats

UNITED NATIONS (Reuters) - The U.N. General Assembly is set to implicitly recognize a sovereign state of Palestine on Thursday despite threats by the United States and Israel to punish the Palestinian Authority by withholding much-needed 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.

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 said on Wednesday that Deputy Secretary of State Bill Burns and U.S. Middle East peace envoy David Hale traveled to New York on Wednesday in a last-ditch effort to get Abbas to reconsider.

The Palestinians gave no sign they were 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."

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.

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.

CRIMINAL COURT ACCESS

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.

Hanan Ashrawi, a top Palestine Liberation Organization official, told a news conference in Ramallah that "the Palestinians can't be blackmailed all the time with money."

"If Israel wants to destabilize the whole region, it can," she said. "We are talking to the Arab world about their support, if Israel responds with financial measures, and the EU has indicated they will not stop their support to us."

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.

As there is little doubt about how the United States will vote when the resolution is put to a vote sometime after 3 p.m. (2000 GMT) on Thursday, the Palestinian Authority has been concentrating its efforts on lobbying wealthy European states, diplomats say.

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 been trying to get as many European votes as possible.

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 a three-way split in the continent's vote.

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

Ashrawi said the positive responses from European states were encouraging and sent a message of hope to all Palestinians.

"This constitutes a historical turning point and opportunity for the world to rectify a grave historical injustice that the Palestinians have undergone since the creation of the state of Israel in 1948," she said.

A strong backing from European nations could make it awkward for Israel to implement harsh retaliatory measures. But 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.

Israel also seems wary of weakening the Western-backed Abbas, especially after the political boost rival Hamas received from recent solidarity visits to Gaza by top officials from Egypt, Qatar and Tunisia.

Hamas militants, who control Gaza and have had icy relations with the Palestinian Authority in the West Bank, unexpectedly offered Abbas their support this week.

(Andrew Quinn in Washington, Noah Browning in Ramallah, Jeffrey Heller in Jerusalem, Michelle Nichols in New York, Robert Mueller in Prague and Reuters bureaux in Europe and elsewhere; Editing by Xavier Briand)

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Long hard road for Spain in recession: OECD

MADRID: Spain is engulfed in a long recession with little hope of a quick recovery and its towering unemployment rate will soar further, the OECD club of industrialised nations said Thursday.

Spain must quickly fix its banks to avert the "substantial risk" of being cut off from external financing and plunging into an even deeper recession, the body warned in a report.

"The economy is undergoing a prolonged recession," the Organisation for Economic Cooperation and Development said in a report, citing the 2008 global financial crisis and the bust of a Spanish housing boom.

"The prospect of an immediate recovery remains remote," the OECD said, noting that people and businesses were struggling to repay loans and the nation was stuck in a debt crisis.

OECD secretary-general Angel Gurria called for Spain's European partners to make a declaration that they would support Madrid in any bailout request, though it has staunchly resisted making such a call over recent months.

Addressing Spain's 25-percent unemployment rate, the OECD urged drastic labour market changes, on top of much-protested reforms already taken by conservative Prime Minister Mariano Rajoy that make it cheaper to fire staff.

It called for cutting compensation for unfair dismissal, considering abolishing an extension of industry-wide collective bargaining, and more training and job-search help for the young.

Gurria highlighted the level of youth unemployment -- more than 52 percent among 16 to 24-year-olds. The OECD forecast the overall jobless rate would reach 26.9 percent in 2013.

Spain's economy has been shrinking for 15 months, with output slumping 0.3 percent in the third quarter, according to official data, and the recession is expected to last right through 2013.

Spain's "immediate policy priority" is to restore trust in banks by fixing weak balance sheets, making orderly resolution of non-viable banks, and shifting bad assets into a new bad bank, the body said.

"In the short-term, there is a substantial risk that the economy, notably the banks, will remain cut off from external funding," it said.

"This would deepen the recession, especially if measures taken at the European level provide ineffective in easing tensions in interbank and sovereign markets."

Spain's banks are struggling with loans turned sour after the property crash.

Eurozone powers agreed in June to extend to Madrid an emergency rescue loan of up to 100 billion euros ($129 billion) to fix their balance sheets and reform the sector.

Now, Spain also is pondering whether to apply to the eurozone's bailout fund for a sovereign rescue, which would open the way for the European Central Bank to buy Spanish bonds and curb Madrid's borrowing costs.

"The thing we need now is to ask that Spain's European partners, given its performance, make an unequivocal declaration that in case Spain asks for support, that this support will be given," Gurria told a news conference.

The ECB's offer to make unlimited purchases of stricken states' bonds if they accept strict conditions has brought down Spain's interest rates even before Madrid decides whether to seek the help.

On another sensitive reform that has fuelled mass street protests, the OECD urged the Spanish government to broaden a hike in sales tax to more goods and services and increase tax on fuel.

The Madrid stock exchange strengthened Thursday, with the IBEX-35 index closing 1.74 higher as tensions eased over Greek debt. Banks' shares picked up after sharp losses Wednesday linked to their restructuring.

-AFP/ac

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Heavy snowfall in higher reaches of Uttarakhand

DEHRADUN: The higher reaches of the mountains in Kumaon and Garhwal regions of Uttarakhand today received the season's first heavy snowfall even as icy winds swept the plains.

Incessant rains made way for heavy snowfall in Badrinath, Kedarnath, Gangotri, Yamnotri, Auli and Harsil in Garhwal and Dharchula and Munsyari in Kumaon.

Rains lashed Dehradun in the afternoon making the day temperature drop sharply from yesterday's 24 degrees Celsius to 20 degrees Celsius, the MeT department said.

The minimum temperature recorded in the capital today was 7.6 degrees Celsius, a notch below yesterday's 8.6, it 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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Petraeus Tells Friend He 'Screwed Up Royally'

One of David Petraeus' closest friends says the former CIA director admitted that he "screwed up royally" by having an affair with his biographer Paula Broadwell.

Retired Brigadier Gen. James Shelton has been friends with Petraeus for more than three decades and reached to out to him after he resigned from the CIA. Shelton told ABC News that the former four-star general wrote him a letter recently confessing to the affair.

Petraeus, 60, writes in the letter, "Team Petraeus will survive…. though [I] have obviously created enormous difficulty for us," according to Shelton.

A former spokesman for Petraeus told ABC News that fury was an inadequate description for Holly Petraeus after learning her husband of 38 years had an affair.

But in the letter, Petraeus writes that his wife is "…once again demonstrating how incredibly fortunate I was to marry her."

Shelton said he has shocked when news of the affair broke. Shelton says he has never met Broadwell but talked to her on the phone as she worked on the Petraeus biography, "All In." Broadwell thanked Shelton in the book's acknowledgments as "being wonderfully helpful."

Shelton says he found Broadwell engaging.

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"I don't think she wove a web around Dave and dragged him in, I don't think that at all. I think it was mutual," Shelton told ABC News.

The disgraced general also stuck by his decision to step down as head of the CIA, writing, "I paid the price (appropriately) and I sought to do the right thing, at the end of the day."

Neither Broadwell nor Petraeus would comment when ABC News tried to reach them overnight.

However, there are many in Washington who now wonder if Shelton's talking about this letter is the beginning of a carefully choreographed campaign by Petraeus to rehabilitate his image.

Shelton says while he was disappointed in Petraeus' actions, he thinks it was a one-time mistake.

"I believe that Dave Petraeus was that kind of guy. He wasn't looking for it, it happened," he said.

While it is unclear who may have initiated the affair, what is clear is the scope of their relationship. An FBI investigation has uncovered hundreds if not thousands of emails exchanged between the two.

The 40-year-old author was stripped of her military security clearance after a federal probe alleged she was storing classified military material at her home.

The FBI found classified material on a computer voluntarily handed over by Broadwell earlier in the investigation.

Prosecutors will now have to determine how important the classified material is before making a final decision on how to proceed. Authorities could decide to seek disciplinary action against her rather than pursue charges.

Since announcing his resignation from the CIA last month, Petraeus has kept a low profile only appearing in closed door hearings before the House and Senate intelligence committees to testify about what he learned first-hand about the Sept. 11 attack in the U.S. consulate in Benghazi.

ABC News' Mosheh Gains contributed to this report.

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Egypt protests continue in crisis over Mursi powers

CAIRO (Reuters) - The assembly writing Egypt's constitution said it could wrap up a final draft later on Wednesday, a move the Muslim Brotherhood sees as a way out of a crisis over a decree by President Mohamed Mursi that protesters say gives him dictatorial powers.

But as Mursi's opponents staged a sixth day of protests in Tahrir Square, critics said the Islamist-dominated assembly's bid to finish the constitution quickly could make matters worse.

Two people have been killed and hundreds injured in countrywide protest set off by Mursi's decree.

The Brotherhood hopes to end the crisis by replacing Mursi's controversial decree with an entirely new constitution that would need to be approved in a popular referendum, a Brotherhood official told Reuters.

It is a gamble based on the Islamists' belief that they can mobilize enough voters to win the referendum: they have won all elections held since Hosni Mubarak was toppled from power.

But the move seemed likely to deepen divisions.

The constitution is one of the main reasons Mursi is at loggerheads with non-Islamist opponents who are boycotting the 100-member constitutional assembly. They accuse the Islamists of seeking to impose their vision for Egypt's future.

The assembly's legal legitimacy has been called into question by a series of court cases demanding its dissolution. Its popular legitimacy has been hit by the withdrawal of members including church representatives and liberals.

"We will start now and finish today, God willing," Hossam el-Gheriyani, the assembly speaker, said at the start of its latest session in Cairo, saying Thursday would be "a great day".

"If you are upset by the decree, nothing will stop it except a new constitution issued immediately," he said. Three other members of the assembly told Reuters there were plans to put the document to a vote on Thursday.

ENTRENCHING AUTHORITARIANISM

Just down the road from the meeting convened at the Shura Council, protesters were again clashing with riot police in Tahrir Square. Members of the assembly watched on television as they waited to go into session.

"The constitution is in its last phases and will be put to a referendum soon and God willing it will solve a lot of the problems in the street," said Talaat Marzouk, an assembly member from the Salafi Nour Party, as he watched the images.

But Wael Ghonim, a prominent activist whose online blogging helped ignite the anti-Mubarak uprising, said a constitution passed in such circumstances would "entrench authoritarianism".

The constitution is supposed to be the cornerstone of a new, democratic Egypt following Mubarak's three decades of autocratic rule. The assembly has been at work for six months. Mursi had extended its December 12 deadline by two months - extra time that Gheriyani said was not needed.

The constitution will determine the powers of the president and parliament and define the roles of the judiciary and a military establishment that had been at the heart of power for decades until Mubarak was toppled. It will also set out the role of Islamic law, or sharia.

The effort to conclude the text quickly marked an escalation, said Nathan Brown, a professor of political science at George Washington University in the United States.

"It is not going to be seen by anything other than a confrontational step," he said. "It may be regarded with hostility by a lot of state actors too, including the judiciary."

Leading opposition and former Arab League chief figure Amr Moussa slammed the move. He walked out of the assembly earlier this month. "This is nonsensical and one of the steps that shouldn't be taken, given the background of anger and resentment to the current constitutional assembly," he told Reuters.

Once drafted, the constitution will go to Mursi for approval, and he must then put it to a referendum within 15 days, which could mean the vote would be held by mid-December.

COURTS DECLARE STRIKE

Deepening the crisis further on Wednesday, Egypt's Cassation and Appeals courts said they would suspend their work until the constitutional court rules on the decree.

The judiciary, largely unreformed since the popular uprising that unseated Mubarak, was seen as a major target in the decree issued last Thursday, which extended his powers and put his decisions temporarily beyond legal challenge.

"The president wants to create a new dictatorship," said 38-year-old Mohamed Sayyed Ahmed, an unemployed man, in Tahrir.

Showing the depth of distrust of Mursi in parts of the judiciary, a spokesman for the Supreme Constitutional Court, which earlier this year declared void the Islamist-led parliament, said it felt under attack by the president.

In a speech on Friday, Mursi praised the judiciary as a whole but referred to corrupt elements he aimed to weed out.

"The really sad thing that has pained the members of this court is when the president of the republic joined, in a painful surprise, the campaign of continuous attack on the Constitutional Court," said the spokesman Maher Samy.

Senior judges have been negotiating with Mursi about how to restrict his new powers.

Mursi's administration insists that his actions were aimed at breaking a political logjam to push Egypt more swiftly towards democracy, an assertion his opponents dismiss.

The West worries about turbulence in a nation that has a peace treaty with Israel and is now ruled by Islamists they long kept at arms length.

Trying to ease tensions with judges, Mursi said elements of his decree giving his decisions immunity applied only to matters of "sovereign" importance, a compromise suggested by the judges.

A constitution must be in place before a new parliament can be elected, and until that time Mursi holds both executive and legislative powers. An election could take place in early 2013.

(Additional reporting by Tom Perry and Marwa Awad; Writing by Edmund Blair and Tom Perry; Editing by Will Waterman and Giles Elgood)

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Italy, China sign deals worth US$1.27b

ROME: Italian and Chinese firms signed deals worth $1.27 billion (984 million euros) on Wednesday in Rome at talks attended by Prime Minister Mario Monti and senior Chinese politburo member Jia Qinglin.

The six deals included agreements between Chinese telecoms giant Huawei and Italian Internet provider Fastweb for $557 million and between China Everbright and Chinese-owned Italy-based yacht company Ferretti for $480 million.

"These agreements show that many sectors of the Italian economy can attract foreign investors, raising the growth potential of the country and expanding its international exchanges," Monti was quoted as saying in a statement.

Monti has sought to raise Italy's status among international investors.

After a visit to Qatar earlier this month, Italy and Qatar set up a two-billion-euro joint venture for making investments in Italy.

The two countries are set to sign another deal soon for a one-billion-euro fund for small and medium-sized enterprises, the government said.

-AFP/ac

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Times campaign: Get rid of outdated laws

After 20 years of economic reforms, our laws have still not been rid of obscure and obsolete provisions. Whether they are central or state, the laws continue to offer ample scope to 'authorities' to harass law-abiding citizens. You can be arrested, your homes and establishments raided, your businesses shut down, and your reputation affected (at least temporarily) -- for reasons that no right-thinking person would consider criminal or immoral. Unfortunately, there are 'sections' buried deep inside some 'Act' or the other that allow motivated arrests, raids, and other forms of state-sponsored action.

Also read: Statutory warning: Old laws hurt industry

Some of these 'legal provisions' were actually born out of the need of our erstwhile British rulers to keep us in line -- but have, incredibly enough, not been struck off the statute books because it now suits our Indian rulers to keep them handy. More often than not, they are 'enforced' to extract bribes, scare off political rivals, or 'settle scores'. Even business leaders who are known for their high ethical standards privately tell TOI that their companies at times have no choice but to 'take care' of the inspectors and other government officers who come calling. "Some of the rules and regulations they cite are unbelievably stupid and archaic, and they come in the way of doing business honestly. We all know why they do it. Apart from the harassment we are subjected to, it increases our cost of doing business," said a prominent and universally well-regarded industrialist.

If we pride ourselves as a liberal democracy, such laws must go.

This newspaper has often written against them, as and when they have been used to harass innocent people. Over the next few weeks, we will run a series titled 'OUTLAWS' on laws that have no place in a law-abiding society. Please post your comments and suggestions here.

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing infections from surgery is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million.

The measures included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Practices were standardized at the seven hospitals.

The Joint Commission hospital regulating group and the American College of Surgeons directed the project. They announced results on Wednesday.

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Online:

Joint Commission: http://www.jointcommission.org

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Susan Rice Made Allies, Enemies Before Benghazi

United Nations Ambassador Susan Rice, on Capitol Hill this week answering questions about her role after the U.S. consulate attack in Benghazi, has become yet another player in the divide between the left and right, with her possible nomination as the next Secretary of State hanging in the balance.

But who was Susan Rice before she told ABC's "This Week" and other Sunday morning shows the attack was a spontaneous response to an anti-Islam film and not a premeditated act of terror? Four Americans died in the September attack.

Unlike many in government, Rice holds a rare claim to Washington, D.C.: she's a local. She hails from a prominent family with deep ties to the Democratic Party. She was born Nov. 17, 1964 to Emmett Rice, a deputy director at the Treasury Department who served as a member of Jimmy Carter's Federal Reserve board, and Lois Dickson Rice, a former program officer at the Ford Foundation who is now a higher education expert at the Brookings Institution.

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As a high school student at the all-girl National Cathedral School in Washington, Rice was known as an overachiever; valedictorian, star athlete and class president. After graduating high school in 1982, she went on to study history at Stanford, where she graduated as a Truman scholar and junior Phi Beta Kappa. Rice also attended Oxford as a Rhodes Scholar.

The family has roots in Maine. In an interview with the Portland Press Herald in 2008, Lois Dickson Rice said that she held the same high expectations for her children as her mother had held for her. According to the paper, Ambassador Rice's drive to achieve spanned generations. Her maternal grandmother, an immigrant from Jamaica, was named Maine State Mother of the Year in 1950. Rice's father was only the second African-American man to be chosen for the Federal Reserve board.

Two years out of Stanford, Rice joined Massachusetts Democrat Michael Dukakis as a foreign policy aide during his 1988 run for president. After his defeat, Rice tried her hand in the private sector, where she went on to work as a management consultant with McKinsey and Company. After President Clinton's election in 1992, she joined Clinton's National Security Council, eventually joining her mentor, former Secretary of State Madeleine Albright. She served as Assistant Secretary of State for African Affairs.

A profile of the diplomat from Stanford paints the Rices and Albrights as old family friends.

"The Rice and Albright kids went to school together and shared meals at Hamburger Hamlet," Stanford Magazine reported in 2000.

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