At his Republic Day reception, President Pranab gives tradition a break

NEW DELHI: As a pleasant winter sun shone on the manicured lawns of the magnificent Rashtrapati Bhavan, President Pranab Mukherjee mingled with dignitaries at a reception he hosted here Saturday, and in a break from tradition, walked up to the guests and exchanged greetings with them.

At the traditional reception, or " At Home", the President hosts on the occasion of Republic Day, Mukherjee did away with protocol as he ambled along among the guests on the lawns of Rashtrapati Bhavan, exchanging "namastey" and even shaking hands with some.

"Sir, your speeches are really nice," the IANS correspondent told the President, to which he smiled, and said "Thank you!".

Many guests introduced themselves and their spouses to the President, who smilingly accepted the greetings from the excited gathering as his splendidly liveried guards tried politely to keep the people from coming too close.

In another break from tradition, the reception saw Bangla tunes being played by the band.

Two of Nobel laureate Rabindranath Tagore's compositions "Anondo Loke Mongola Loke" and "Gram Chara Oi Ranga Mati" formed a delightful background music as President Mukherjee chatted with his special guests — the King of Bhutan Jigme Khesar Namgyel Wangchuck and his young and beautiful wife Jetsun Pema.

Maroon dahlias, pansies and roses were in full bloom in the neat beds bordering the lawns, while gladioli were bunched together in bouquets in huge brass pots, adding colour to the serene surroundings as the President chatted with Prime Minister Manmohan Singh and his wife Gursharan Kaur and former President APJ Abdul Kalam.

The President's wife, Suvra Mukherjee, who was brought in a wheel chair, appeared to enjoy the Bangla tunes, tapping her fingers to "Anondo Loke, Mongola Loke", and chatting with Gursharan Kaur.

Vice-President Hamid Ansari, United Progressive Alliance chairperson Sonia Gandhi, Lok Sabha speaker Meira Kumar and Bharatiya Janata Party leader LK Advani and his wife among others exchanged greetings with one another. They also went on to mingle with the dignitaries, including foreign envoys and their spouses.

President Mukherjee went up to Advani and spoke with him.

Matar aaloo samosas, chilli paneer, plum cake, patties, pastries, Caribbean delight made of fish were among the snacks on offer, as women, mostly attired in elegant saris, and men in suits, tucked in and watched the proceedings.

Red liveried Presidential guards, with their gold-red turbans brought tray loads of the snacks for the President and the other dignitaries, including the Bhutan king, who were seated under an umbrella-shaped marquee. All around the massive garden, snack stalls were set up for the other guests.

President Mukherjee, a few months after he was sworn in last July, had issued an order doing away with the colonial era of addressing the President as "His Excellency".

He had also directed authorities to organize government functions for him within Rashtrapati Bhavan premises in order to avoid inconveniencing the public.

Last month, in an effort to make Rashtrapati Bhavan more accessible to the public, Mukherjee directed that it be opened for public viewing on Sundays and for increased hours.

An online system of booking for tours of Rashtrapati Bhavan has also been launched.

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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

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Cops Using More Private Cameras to Nab Suspects

Philadelphia detectives were able to quickly make an arrest in the murder and burning of a female pediatrician by viewing surveillance video of nearby stores and a hospital that captured the suspect entering the doctor's home and later getting into his truck.

In the hours after Dr. Melissa Ketunuti's body was found strangled and burning in her basement, city's Homicide Task Force collected surveillance footage from a coffee shop, drug store and hospital overlooking Ketunuti's block. It was footage taken from Ori Feibush's coffee shop that allowed cops to identify Smith.

The suspect, an exterminator named Jason Smith, soon confessed to detectives, police said.

Lately a range of crimes have been solved by the seemingly ubiquitous security videos maintained by private companies or citizens, and investigators have been able to quickly apprehend suspects by obtaining the video, deftly turning private cameras into effective police resources.

Philadelphia Police Arrest Suspect in Doctor's Killing Watch Video

Pa. Doctor Killing: Person of Interest in Custody Watch Video

Private surveillance cameras have become so pervasive that the face of a suspect who allegedly shot a Bronx, N.Y., cab driver in a botched robbery on Jan. 14 was splashed throughout the media within days because the cabbie had rigged his vehicle with a camera.

The New York Police Department arrested Salvatore Perrone after he was caught on surveillance video recorded near two of three shopkeeper slayings in Brooklyn, N.Y., in November. He has since been charged with murder.

And in Mesa, Ariz., surveillance footage taken in November by resident Mitch Drum showed a man rolling on the ground trying to extinguish flames that had engulfed his shirt, which had caught fire while he was allegedly siphoning gas from a car by Drum's house. The man was arrested.

Though surveillance cameras have been a staple of security since a network of government operated cameras dubbed the "ring of steel" was introduced in London in the early 1990s, police have recently launched programs to partner with more businesses.

In Philadelphia, police have launched a program for businesses to register private cameras with the department. According to the SafeCam website, businesses will only be contacted when there is a criminal incident in the vicinity of the security camera. At that point, police will request a copy of the footage for their investigation.

"Businesses are saying, 'I have a camera at this location, and it may or may not be of use to you. It's a registration to say, 'feel free to call me,'" Sgt. Joseph Green told ABCNews.com

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Violence flares on anniversary of Egypt uprising

CAIRO/ALEXANDRIA, Egypt (Reuters) - Protesters clashed with police across Egypt on Friday on the second anniversary of the revolt that toppled Hosni Mubarak, taking to the streets against the elected Islamist president who they accuse of betraying the revolution.

At least 91 civilians and 42 security personnel were hurt in violence across the country, officials said. Street battles erupted in Cairo, Alexandria, Suez and Port Said, where the Muslim Brotherhood's political party offices were torched.

Thousands of opponents of President Mohamed Mursi and his Muslim Brotherhood allies massed in Cairo's Tahrir Square - the cradle of the uprising against Mubarak - to revive the demands of a revolution they say has been hijacked by the Islamists.

The January 25 anniversary showcased the divide between the Islamists and their secular foes that is hindering Mursi's efforts to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.

Inspired by Tunisia's ground-breaking popular uprising, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that has only worsened and last month triggered lethal street battles.

"It's definitely tense on the ground, but so far there hasn't been anything out of the ordinary or anything that really threatens to fundamentally alter the political situation," said Shadi Hamid, director of research at the Brookings Doha Center.

The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after violence in December that was stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.

The Brotherhood fiercely denies accusations of trampling on democracy as part of a smear campaign by its rivals.

Before dawn on Friday, police battled protesters who threw petrol bombs and firecrackers as they tried to approach a wall blocking access to government buildings near Tahrir Square.

Clouds of tear gas filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by the youths, a Reuters witness said.

Skirmishes between stone-throwing youths and the police continued in streets around the square into the day. Ambulances ferried away a steady stream of casualties.

"Our revolution is continuing. We reject the domination of any party over this state. We say no to the Brotherhood state," Hamdeen Sabahy, a popular leftist leader, told Reuters.

There were similar scenes in Suez and Alexandria, where protesters and riot police clashed near local government offices. Black smoke billowed from tyres set ablaze by youths.

Police also fired tear gas to disperse dozens of protesters who tried to scale barbed-wire barriers protecting the presidential palace in Cairo, witnesses said. Other protesters broke into offices of provincial governors in Ismailia, east of Cairo, and Kafr el-Sheikh in the Nile Delta.

In Tahrir Square, protesters echoed the chants of 2011's historic 18-day uprising. "The people want to bring down the regime," they chanted. "Leave! Leave! Leave!" chanted others as they marched towards the square.

"We are not here to celebrate but to force those in power to submit to the will of the people. Egypt now must never be like Egypt during Mubarak's rule," said Mohamed Fahmy, an activist.

BADIE CALLS FOR "PRACTICAL, SERIOUS COMPETITION"

With its eye firmly on forthcoming parliamentary elections, the Brotherhood marked the anniversary with a charity drive across the nation. It plans to deliver medical aid to one million people and distribute affordable basic foodstuffs.

Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Mohamed Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.

"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.

Still, Mursi faces discontent on multiple fronts.

His opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.

"I am taking part in today's marches to reject the warped constitution, the 'Brotherhoodisation' of the state, the attack on the rule of law, and the disregard of the president and his government for the demands for social justice," Amr Hamzawy, a prominent liberal politician, wrote on his Twitter feed.

The Brotherhood dismisses many of the criticisms as unfair fabrications of their rivals, accusing them of failing to respect the rules of the new democracy that put the Islamists in the driving seat via free elections.

Six months into office, Mursi is also being held responsible for an economic crisis caused by two years of turmoil. The Egyptian pound has sunk to record lows against the dollar.

SOURCES OF FRICTION ABOUND

Other sources of friction abound. Little has been done to reform brutal Mubarak-era security agencies. A spate of transport disasters on roads and railways neglected for years is feeding discontent as well. Activists are impatient for justice for the victims of violence over the last two years.

These include hardcore soccer fans, or ultras, who have been rallying in recent days to press for justice for 74 people killed in a soccer stadium disaster a year ago in Port Said after a match between local side al-Masry and Cairo's Al Ahly.

The parties that called for Friday's protests listed demands including a complete overhaul of the constitution.

Critics say the constitution, which was approved in a referendum, offers inadequate protection for human rights, grants the president too many privileges and fails to curb the power of a military establishment supreme in the Mubarak era.

Mursi's supporters say that enacting the constitution quickly was crucial to restoring stability desperately needed for economic recovery, and that the opposition is making the situation worse by perpetuating unrest.

(Additional reporting by Ahmed el-Shemi, Ashraf Fahim, Marwa Awad and Shaimaa Fayed in Cairo and Yousri Mohamed in Ismailia; Writing by Tom Perry; Editing by Mark Heinrich)

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US scholar urges dramatic rethink on Taiwan

WASHINGTON: With Beijing growing in strength, a US scholar is calling for a major rethink on Taiwan in which the island would cut its troop numbers in half and rebrand its army as a self-defence force.

The proposal marks a rare break from the conventional view of American and Taiwanese policymakers that the island needs to close the military gap with Beijing, but its author said an opposite course could strengthen Taipei.

Scott Bates, president of the Washington-based Center for National Policy, said the balance was "irretrievably shifting" in China's favor and it was politically and economically unrealistic that Taiwan would commit enough to close the gap.

Instead, Taipei can take the lead by halving the size of its army, rebranding it as a Self-Defence Force in the style of Japan and renouncing any military action on mainland China's soil, he argued.

"If Taiwan were to take a bold step like this, that would change perceptions on the mainland and perhaps win some popular support for the Taiwanese position," said Bates, a former congressional aide.

"If there were a showdown, it might make (Beijing) think twice."

Taiwan should turn the new force into a disaster response team ready to deploy throughout Asia and also highlight the island's democracy through a major initiative that supports civil society across the continent, Bates said.

And instead of waging a battle to preserve a dwindling number of nations' recognition of Taipei instead of Beijing, Taiwan can use its diplomatic resources to seek solutions on Asia's bitter territorial disputes, he said.

The new Taiwanese approach would give the island the moral high ground, winning over global opinion and ensuring that China would appear to be the aggressor if it attacked, he argued.

"Mainland Chinese public opinion is beginning to matter more. The Chinese Communist Party cannot ignore its own people without repercussions," Bates said.

China considers Taiwan to be a territory awaiting reunification, by force if necessary. China's defeated nationalists fled to Taiwan after defeat by the communists in 1949, with the island developing into a self-ruling democracy.

The United States switched recognition from Taipei to Beijing in 1979 but at the same time Congress passed the Taiwan Relations Act, which requires Washington to provide the island with means to defend itself.

Bates said that his proposal would complement efforts by Taiwan President Ma Ying-jeou, who has sought to ease tensions with China by expanding economic ties, though domestic critics accuse Ma of jeopardising the island's de facto independence.

Bates supported the continuation of the Taiwan Relations Act, saying the island needed a credible deterrent. While cutting its army, Bates called for Taiwan to launch a major upgrade of its air defences and navy to show that any effort to gain supremacy over the island would be costly.

The Taiwan Relations Act enjoys virtually unanimous support in the US Congress, where lawmakers have pressed President Barack Obama to sell to the island new F-16 jets - a step that China strongly opposes.

Bates' ideas, however, are unlikely to win quick support.

Joseph Bosco, a former Pentagon official, sharply criticised the proposal, saying it went against accepted concepts of deterrence and that Taiwan already had the moral high ground.

"Taiwan does not need to disarm unilaterally in order to prove its moral or political legitimacy," Bosco said on Wednesday at an event where Bates presented his proposal.

Bates, who spoke last year at Taiwan's National Defence University and wrote an opinion piece in the Taipei Times, said he wanted to start a debate.

"It doesn't have to be my plan, but there does have to be a strategic rethink," he said.

- AFP

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Now, NIA aiming to secure access to Rana

NEW DELHI: The National Investigation Agency (NIA), satisfied with the 35-year sentence handed out to LeT operative David Coleman Headley as it virtually rules out his coming out of the prison alive, will now step up efforts to gain access to his accomplice Tahawwur Hussain Rana to probe the case relating to the LeT's plot to target various Indian cities, including the national capital.

Rana, handed a 14-year jail term by the US court on January 17 for aiding a terror plot against a Danish newspaper office, was earlier acquitted on counts relating to abetting and providing material support for the Mumbai carnage. There is a realization here that the US may not grant India access to Rana for probing his role in the 26/11 attacks.

The NIA will rely on its investigations into activities of Headley during his several trips to India both before and after the Mumbai attacks. The Pakistani-American terror operative, whose videography of the 26/11 targets helped LeT plan and coordinate the terror assault, had in 2009 went around Chabad Houses across five cities, the National Defence College in New Delhi and the Bhabha Atomic Research Centre, Mantralaya and Air India building in Mumbai, scouting them for future terror attacks.

Rana, a Canadian-American, who ran an immigration business from Chicago, is alleged to have provided him funds for these reconnaissance trips. Though NIA has sought information from the US regarding Headley's bank accounts linked to the credit card used by him during his stay in India, the Americans are yet to share the same. The NIA believes Headley's bank statements may help probe whether Rana had been transferring money to the American LeT operative's account to take care of his credit card bills.

Incidentally, it was Rana, a Pakistani Army deserter, who had facilitated Headley's Indian visa by arranging forged documents containing false information relating to Headley's father's name and marital status, and offered him cover for his reconnaissance missions by opening a "dummy" office for his immigration business in Mumbai.

Rana is also under lens for having visited India just ahead of the 26/11 attacks. He stayed at the Taj Hotel in Mumbai for four days with his wife, and left India for the UAE six days before 10 LeT terrorists landed in Mumbai. During this stay, he also carried out "interviews" of Canadian visa-seekers across cities like Agra, Ahmedabad and Kochi, who he had invited through a newspaper advertisement. However, the Indian agencies suspect that the "interviews" may have been a cover for possible recruitment of young men for terror activities.

NIA sleuths investigating the larger conspiracy of LeT to organize terrorist attacks at places of iconic importance in India, hope to get more information regarding the trips by Headley and Rana, by questioning Rana. Given the bleak hope of laying hands on Headley and the condition agreed to by Indian investigators of not using Headley's disclosures against him, NIA is now counting on a statement by Rana to take forward its trial in the case that it had registered in 2009.

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

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Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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Mars Rover Celebrates Milestone on Red Planet

It was never supposed to last this long. When the Mars rover Opportunity settled on the Martian surface nine years ago today, mission managers at NASA said they would be pleased if it lasted for 90 days.

Instead, it's been 3,201 days, and still counting. The rover has driven 22.03 miles, mostly at a snail's pace, from one crater to another, stopping for months at a time in the frigid Martian winters. The six motorized wheels, rated to turn 2.5 million times, have lasted 70 million, and are all still working.

"Opportunity is still in very good health, especially considering what it's gone through," said John Callas, manager of NASA's Mars Exploration Rover project. The surface of Mars is a pretty tough place; there can be temperature fluctuations of a hundred degrees each day. That's pretty hard on the hardware."

Video: '7 Minutes of Terror: A Landing on Mars

When Opportunity and its twin rover, Spirit, reached Mars in January 2004, there was a fair bit of sniping that NASA, with all that 90-day talk, was playing down expectations. It escalated when Steve Squyres of Cornell University, the principal investigator for the missions, said things like, "We're on Sol 300 of a 90-Sol mission." (A Sol is a day on Mars, and lasts 24 hours, 39 minutes.) Callas and others have insisted that the prediction was based on engineering, not a nod to public relations.

"There was an expectation that airfall dust would accumulate on the rover, so that its solar panels would be able to gather less electricity," said Callas. "We saw that on Pathfinder," a small rover that landed on Mars in 1997." The cold climate was also expected to be hard on the rovers' batteries, and changes in temperature from night to day would probably pop a circuit or two.

Instead, the temperatures weren't quite as tough as engineers had expected, and the rovers proved tougher. They did become filthy as the red Martian dust settled on them, reducing the sunlight on the solar panels -- but every now and then a healthy gust came along, surprising everyone on Earth by cleaning the ships off.

Click Here for Pictures: Postcards From Mars

Spirit, in hilly territory on the other side of the planet, finally got stuck in crusty soil in 2009, and its radio went silent the next year. But Opportunity, though it's had some close calls, is -- well, you remember those commercials about the Energizer bunny.

So what do you do with an aging rover on a faraway planet? You keep using it. In its first weeks, NASA said Opportunity found chemical proof that there had once been standing water on the surface of Mars -- good news if you're looking for signs that the planet could once have been friendly to life. Since then, it's been sent to other places, with rocks and soil that are probably older, and with clay that may have been left by ancient rivers.

About 20 NASA staff members still work full-time on Opportunity at the Jet Propulsion Laboratory in Pasadena, Calif. Another 60 split their time between Opportunity and other projects, such as the Curiosity rover that landed last August. About 100 scientists, doing research on Mars, pop in and out.

In a few months, Callas said, Opportunity will head to an area nicknamed Cape Tribulation. The clay there could be rich in the minerals suggestive of past life.

They haven't done much to mark the ninth anniversary or the 3,200th Martian day, just a get-together earlier this week during a previously scheduled science conference. After that, Callas said, it was back to work.

"It's like keeping your car going," he said, "without ever having a chance to change the oil."

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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Keppel Corp's net profit falls 22% on-year in Q4

SINGAPORE: Falling margins from building oil rigs has hit the bottomline of Keppel Corp.

Net profit for the world's leading rig builder fell 22 per cent on-year to S$305 million in the fourth quarter last year.

Still, full year profit for the conglomerate came in 15 per cent to S$2.24 billion.

Despite lower net profit in the three months ended Dec 31, Keppel Corp still declared a final dividend of 27 cents per share.

As part of its 45th anniversary, Keppel Corp is handing out more goodies to its shareholders.

The company has proposed to distribute one Keppel REIT unit for every five Keppel Corp shares.

That is about 27.4 cents per share based on Keppel REIT's closing price of S$1.37 on Thursday.

Together with the interim dividend of 18 cents, total distribution for 2012 will be 72.4 cents per share.

Keppel Corp said the lower net profit was partly due to lower contributions from its offshore and marine unit.

Offshore and Marine's contribution was 12 per cent lower from a higher base in 2011 when margins were at record highs. It contributes to half of Keppel Corp's net profits.

"Keen rivalry from Chinese and Korean yards have suppressed prices and squeezed margins on newbuilds," said Choo Chiau Beng, chief executive officer at Keppel Corp. "In 2013, we will be completing a record of 22 newbuild units."

Analysts remained upbeat of Keppel's prospects going forward.

They say their financial results still outperformed market expectations.

Keppel Corp expects crude oil prices to stay above US$100 per barrel, supporting the need for more global exploration and production.

But global challenges like the slower US economy and the eurozone crisis from last year will continue to pose uncertainties for Keppel Corp's business.

Keppel Corp's property arm, led by the listed Keppel Land, boosted the group's earnings.

Net profit for the property division was 2.5 times higher than in 2011, offsetting the lower earnings from business in the offshore and marine, and infrastructure.

But Keppel Corp does not expect its property arm to perform better this year.

This is because recognition from sales of completed units at its development Reflections at Keppel Bay is expected to be lower this financial year.

- CNA/xq

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