Final Senate health care vote scheduled

WASHINGTON (AP) — The end is near.

The Senate has scheduled a vote on final passage of its health care overhaul bill for around 8 a.m. on Thursday, Christmas Eve.

Senate Majority Leader Harry Reid of Nevada announced the agreement on the Senate floor Tuesday afternoon, after working out the details with his Republican counterpart, Mitch McConnell of Kentucky.

Since the Democrats lined up the 60 votes needed prevail in the Senate, they have been shutting down Republican opposition to their 10-year, nearly $1 trillion bill to expand coverage and try to slow increasing medical costs.

Passage would set the stage for negotiations to resolve differences with the House-passed bill.

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Israel passes demands in prisoner swap to Hamas


GAZA CITY, Gaza Strip – Israel delivered its counter-demands Tuesday for a deal with Hamas to exchange about 1,000 Palestinian prisoners for a single Israeli soldier held captive by Gaza militants for more than three years.

As families on both sides agonized over the outcome, last-minute differences over who should be freed or sent into exile threatened to imperil the deal.

Israel insists on expelling some West Bank-born prisoners to the Hamas-ruled Gaza Strip or abroad and balks at releasing some inmates high on the Hamas wish list, said a senior Hamas official who spoke on condition of anonymity because he is not supposed to brief reporters.

Israeli Defense Minister Ehud Barak appeared to be trying to temper expectations when he told a group of students that returning Sgt. Gilad Schalit was a "top priority" — but "not at any price," a reference to Palestinian prisoners convicted of bloody attacks.

Israel's Channel 10 TV broadcast its coverage of the negotiations over a headline that read, "Not Yet." Israeli media said the deal could take days or weeks to complete.

It wasn't clear how soon Hamas would respond.

The Hamas official said that while progress has been made, a deal is not imminent. A Hamas Web site, al-Risalah, said a German mediator would meet later Tuesday with Hamas leaders in Gaza who will "take a final and conclusive decision on what the German mediator brings from his visit to the occupied territories."

Yet another Hamas official said that meeting would take place Wednesday.

In recent days, marathon discussions about the swap at the top level of Israel's government conveyed a sense of urgency. However, more than three years of negotiations following the capture of the Israeli soldier have been shrouded in a fog of disinformation and spin, leading to repeated false alarms that a deal is close.

The decision on whether to accept what would be the biggest swap in years is crucial for Hamas, which wrested Gaza from Western-backed Palestinian President Mahmoud Abbas in 2007.

A swap may be the militant group's only means of easing the Israeli-Egyptian blockade that has plunged most of Gaza's 1.5 million residents deeper into poverty and kept them from rebuilding from an Israeli military offensive a year ago. Israel has said it would not consider lifting the embargo until Schalit is freed.

A high profile prisoner release could also boost the militant group's popularity at the expense of Abbas, who favors a peaceful solution to the conflict with Israel but has little to show for years of negotiations.

On the flip side, Hamas has proven resistant to compromise in the past, and may refuse to give up the soldier, its only bargaining chip, if offered less than it demands.

Israel wants to deport dozens of prisoners, according to a Palestinian official who said he has been briefed on the negotiations. Another Palestinian, who is close to the talks, said the German mediator arranged with six countries to take the released prisoners.

Both spoke on condition of anonymity because of the sensitive nature of the negotiations.

Hamas has tried to lower the number of prisoners to be exiled but has shown flexibility on the issue, saying it would let individual prisoners decide whether to accept deportation.

Two officials, one in Gaza and one in the West Bank, said Israel refuses to release several prisoners high on Hamas' wish list. There were conflicting reports about what the proposed deal would mean for Marwan Barghouti, a hugely popular Palestinian uprising leader seen by many as a potential successor to Abbas.

One official said Israel wants to exile him. Another said it refused to release him at all. Barghouti is serving multiple life sentences for involvement in fatal attacks against Israelis.

Analyst Mouin Rabbani said Hamas is feeling pressure to close a deal. "Within the Hamas leadership ranks there is a widespread view that this is now or never," he said.

A decision would require consideration by Hamas leaders in the group's Gaza stronghold, as well as members of the group's exiled leadership in Syria.

Inside Israel, the proposed deal has stirred up an entirely different set of considerations and emotions.

Clinching the deal might win points for Israeli Prime Minister Benjamin Netanyahu by ending the ordeal of the soldier, Gilad Schalit.

But a large-scale release could also hurt Netanyahu's standing among Israelis who feel releasing prisoners convicted of violence could encourage militants to take more hostages, inviting more bloodshed.

The deportation of violent militants could defuse an angry backlash in Israel.

Yossi Melman, who writes on security issues for the Israeli Haaretz daily, said the deportation of Palestinian militants after a standoff at the Church of the Nativity in Bethlehem in 2002 set a precedent. Thirteen militants were sent to Cyprus, and 12 went on to Spain, Italy, Greece, Ireland, Portugal and Belgium.

On the other hand, many in Israel believe that a 1985 swap, in which 1,150 prisoners were allowed to return to the Palestinian territories, contributed to the outbreak of the first Palestinian uprising against Israeli occupation two years later. Melman called that a "trauma."

Barak said Israel must end the practice of lopsided prisoner exchanges. "Clearly we need a change in concept, and I hope it will be done quickly ... after the Gilad Schalit issue is resolved," he said.

Pressure on Hamas has mounted from a new direction since Egypt started building an underground iron wall to stop the rampant smuggling through hundreds of tunnels under its border with Gaza.

The tunnels provide Gazans with electronics, cement and foodstuffs not otherwise available, while Hamas is believed to use them to import weapons.

Speaking to reporters on Tuesday, Deputy Parliament Speaker Ahmed Bahar of Hamas pleaded with Egypt not to close the tunnels.

"Egypt knows well that the results of constructing an iron wall along the border of the Gaza Strip will bring catastrophic results and destructive dangers upon Gaza residents," he said.

Ahmadinejad dismisses US deadline for nuclear deal


TEHRAN, Iran – Iran's president on Tuesday dismissed a year-end deadline set by the Obama administration and the West for Tehran to accept a U.N.-drafted deal to swap enriched uranium for nuclear fuel. The United States warned Iran to take the deadline seriously.

Mahmoud Ahmadinejad also accused the U.S. of fabricating a purported Iranian secret document that appears to lay out a plan for developing a critical component of an atomic bomb.

Ahmadinejad's remarks underscored Tehran's defiance in the nuclear standoff — and also sought to send a message that his government has not been weakened by the protest movement sparked by June's disputed presidential election. He spoke a day after the latest opposition protest by tens of thousands mourning a dissident cleric who died over the weekend.

Late Tuesday, the Web site of state-run television said Ahmadinejad had appointed a new chief of Iran's prestigious Art Academy, removing opposition leader Mir Hossein Mousavi from the post.

Mousavi, a presidential challenger who alleged voting fraud, had attended Monday's funeral procession. There was no immediate comment from Mousavi.

President Barack Obama has set a rough deadline of the end of this year for Iran to respond to an offer of dialogue on the nuclear issue. Washington and its allies are warning of new, tougher sanctions on Iran if it doesn't respond.

The U.N.-proposed deal is the centerpiece of the West's diplomatic effort. Under the deal, Tehran would ship most of its stockpile of low-enriched uranium abroad to be processed into fuel rods, which would ease the West's fears that the material could be used to produce a nuclear weapon.

Iran, which denies it seeks to build a bomb, has balked at the deal's terms.

The international community can give Iran "as many deadlines as they want, we don't care," Ahmadinejad said in a speech to thousands of supporters in the southern city of Shiraz.

Ahmadinejad dismissed the threat of sanctions, saying Iran wants talks "under just conditions where there is mutual respect."

"We told you that we are not afraid of sanctions against us, and we are not intimidated," he said, addressing the West. "If Iran wanted to make a bomb, we would be brave enough to tell you."

As the crowd cheered: "We love you, Ahmadinejad," the Iranian leader lashed out at Washington, vowing Iran will stand up against U.S. attempts to "dominate the Middle East."

The U.S. responded sternly.

"It is a very real deadline for the international community," said White House press secretary Robert Gibbs.

In Paris, Foreign Minister Bernard Kouchner said the chances of finding a diplomatic solution to the nuclear standoff with Iran were "never very significant" and that in the "worst case," France will bring up the issue of new sanctions on Tehran.

"We all have talked about bringing that (sanctions) up before the end of the year," Kouchner said, but also cautioned, "We mustn't exaggerate the deadline. It's not a cleaver, which would mean that after a certain day we wouldn't speak to one another again."

In a separate interview with ABC News, Ahmadinejad accused the U.S. of forging the document that appears to describe an Iranian work plan for developing a neutron initiator, a key component in detonating a nuclear bomb.

"They are all a fabricated bunch of papers continuously being forged and disseminated by the American government." He said the accusations that Iran seeks a weapon has "turned into a repetitive and tasteless joke." The comments were aired Monday night.

The memo was first reported in the British newspaper Times of London. U.S. officials have said it's unclear whether the document is real.

In his speech Tuesday, Ahmadinejad also shrugged off Iran's continued political turmoil since the June election, which the opposition says Ahmadinejad won by fraud. Large street protests have continued despite a fierce government crackdown. In the latest, tens of thousands turned out for the funeral of Ayatollah Hossein Ali Montazeri, who died Sunday, and chanted slogans against the country's rulers.

Ahmadinejad did not directly mention the protests. But he said the West mistakenly believed that Iran "has been weakened."

"The people of Iran and the government of Iran are 10 times stronger than last year," he said. "I want the whole world to know it's impossible for Iran to allow the United States to dominate the Middle East."

Iran says its nuclear program is intended only to generate electricity and that it has a right to proceed with uranium enrichment, which the United Nations has demanded it suspend. The process can produce low-enriched uranium used to fuel a nuclear reactor — or higher enriched uranium, which is the basis for building a nuclear warhead.

Under the deal brokered by the U.N. nuclear watchdog agency last month, most of Iran's low-enriched uranium would be shipped abroad, where it would be enriched further to produce fuel rods. The rods would then be returned to Iran for use in a research reactor in Tehran, but it would not be possible to enrich them further to a high enough level to build a bomb.

Iran's response has been unclear, with officials floating a number of alternative ideas for a swap — including carrying out the exchange simultaneously or in stages. At times, Tehran has threatened to reject it outright and enrich its own fuel rods, though last week Foreign Minister Manouchehr Mottaki said Tehran was still open to the idea of an exchange.

Ford to Enable Wi-Fi in Autos


If you thought that DVD players and texting were dangerous distractions for drivers, wait until you see people streaming television shows on Hulu during their morning commute. Ford has announced a new feature for upcoming car models that will allow owners to turn their car into a mobile Wi-Fi hotspot.



The next generation of Ford's SYNC technology will provide a USB port in the console of the car that will accept USB mobile broadband modems that people normally use to get Internet connections on laptops that aren't near a Wi-Fi hotspot. These mobile broadband modems are available from most major mobile networks and use cell network signals to connect to the Internet. By plugging the modem into your Ford car, the internal Wi-Fi module can take the mobile Internet signal and rebroadcast it as a Wi-Fi signal for any device that can use Wi-Fi.

This feature makes it possible for entire families to use their devices while in the car, even if you only have one mobile broadband modem. "While you're driving to grandma's house, your spouse can be finishing the holiday shopping and the kids can be chatting with friends and updating their Facebook profiles," said Mark Fields, Ford president of The Americas. "And you're not paying for yet another mobile subscription or piece of hardware because Ford will let you use technology you already have."


Of course, Verizon and Sprint already offer broadband modems that can serve as "mobile hotspots" and which can be used by multiple devices at once, but Ford's move aims to make Internet access in automobiles more convenient and widespread.

Wi-Fi enabled Ford vehicles will have secure connections (using WiFi Protected Access 2, or WPA2, protection) so only those with permission will be able to use the signal as you drive (alleviating the pesky problem of fellow motorists tailing your car in order to steal your Wi-Fi signal; you laugh, but welcome to the 21st century).


Ford said the technology should be available in cars sometime next year but gave no further details.

Court bans sale of Word; Microsoft has fix ready

SEATTLE – A federal appeals court ordered Microsoft Corp. to stop selling its Word program in January and pay a Canadian software company $290 million for violating a patent, upholding the judgment of a lower court.

But people looking to buy Word or Microsoft's Office package in the U.S. won't have to go without the software. Microsoft said Tuesday it expects that new versions of the product, with the computer code in question removed, will be ready for sale when the injunction begins on Jan. 11.

Toronto-based i4i Inc. sued Microsoft in 2007, saying it owned the technology behind a tool in the popular word processing program. The technology in question gives Word users an improved way to edit XML, or code that tells the program how to interpret and display a document's contents.

A Texas jury found that Microsoft Word willfully infringed on the patent. Microsoft appealed that decision, but the U.S. Court of Appeals for the Federal Circuit on Tuesday upheld the lower court's damage award and the injunction against future sales of infringing copies of Word.

Michel Vulpe, founder and co-inventor of i4i, said in a statement that the company is pleased with the decision, calling it "an important step in protecting the property rights of small inventors."

Microsoft said it has been preparing for such a judgment since August. Copies of Word and Office sold before Jan. 11 aren't affected by the court's decision. And Microsoft said it has "put the wheels in motion to remove this little-used feature" from versions of Word 2007 and Office 2007 that would be sold after that date.

"Beta" or test versions of Word 2010 and Office 2010, expected to be finalized next year, do not contain the offending code, the software maker said.

Redmond, Wash.-based Microsoft said it may appeal further, asking for either a rehearing in front of the appeals court's full panel of judges or in front of the U.S. Supreme Court.

White House picks new cyber coordinator

WASHINGTON – The White House has tapped a corporate cyber security expert and former Bush administration official to lead the effort to shore up the country's computer networks and better coordinate with companies that operate 80 percent of those critical systems.

Howard A. Schmidt, a former eBay and Microsoft executive, will become the government's cyber security coordinator, weathering a rocky selection process that dragged on for months, as others turned the job down.

In a letter posted on the White House web site Tuesday, John Brennan, assistant to President Barack Obama for homeland security and counterterrorism, said Schmidt will have regular access to the president and play a vital role in the country's security.

Schmidt's selection comes more than 10 months after Obama declared cyber security a priority and ordered a broad administration review.

A senior White House official said Obama was personally involved in the selection process and chose Schmidt because of his unique background and skills. Schmidt will have regular and direct access to the president for cyber security issues, the official said. The official spoke on the condition of anonymity to discuss the selection process.

Obama released the findings of the cyber security review nearly seven months ago, vowing that the White House would name a cyber coordinator to deal with one of the "most serious economic and national security challenges we face as a nation."

U.S. government computer systems are being attacked or scanned millions of times a day. Hackers and cyber criminals pose an expanding threat, using increasingly sophisticated technologies to steal money or information, while nation-states probe for weaknesses in order to steal classified documents or technology or destroy the networks that run vital services.

Corporate computer security leaders have openly expressed frustration with the White House as movement on the job post stalled.

At the same time, cyber experts and potential job candidates have complained that the position lacks the budgetary and policy-making authority needed to be successful. Schmidt will report to the National Security Council and closely support the National Economic Council on cyber issues.

Schmidt's selection suggests that economic and business interests in the White House held more sway in the selection process. Schmidt, president and CEO of the Information Security Forum, a nonprofit international consortium that conducts research in information security, has served as chief security officer for Microsoft and as cyber security chief for online auction giant eBay. He was reportedly preferred by Lawrence Summers, director of the economic council.

Roger Thornton, a cyber security expert and chief technology officer for Fortify Software, praised the choice. He said Schmidt understands the technology, has broad management experience and has worked well within the political arena, a key requirement for the White House post.

"I think he would be able to get people to compromise and move things forward," said Thornton.

Considered an expert in computer forensics, Schmidt's roughly 40-year career includes 31 years in local and federal government service, including a stint as vice chairman of President George W. Bush's Critical Infrastructure Protection Board. He also was for a short time an adviser to the FBI and worked at the National Drug Intelligence Center.

Congress members, business leaders and cyber security experts have called for a more coordinated effort by the federal government to monitor and protect U.S. systems and work with the private sector to insure that transportation systems, energy plants and other sensitive networks are equally protected.

Serena Williams is 2009 AP Female Athlete of Year


Playing her best at the most important events, Serena Williams re-established herself as the top player in women's tennis in 2009 and was a landslide choice as Female Athlete of the Year by members of The Associated Press.

Williams received 66 of 158 votes cast by editors at U.S. newspapers that are members of the AP. No other candidate got more than 18 votes in the tally, which was announced Tuesday.

Clearly, Williams' most infamous on-court episode — a tirade directed at a line judge after a foot-fault call near the end of her U.S. Open semifinal loss in September — didn't hurt her standing in the eyes of the voters.

"People realize that I'm a great player, and one moment doesn't define a person's career," Williams told the AP. "And I was right, for the most part: It wasn't right the way I reacted — I never said it was — but I was right about the call."

She also noted that the outburst, which resulted in a record fine and two-year probationary period at Grand Slam tournaments, "got a lot more people excited about tennis."

The 28-year-old American tends to do that, thanks to her powerful, athletic play and her outgoing personality.

"We can attribute the strength and the growth of women's tennis a great deal to her," WTA chairman and CEO Stacey Allaster said in a telephone interview. "She is a superstar."

Williams, who is based in Florida, also won the AP award in 2002, a seven-year gap that is the longest between AP Female Athlete of the Year honors since golf's Patty Berg won in 1943 and 1955.

"I'm just happy and blessed to even be playing seven years later. All this is a bonus, really," Williams said. "In 2002, I just was really dominant, and I think in 2009, I just brought that back. I kind of became that player again."

Indeed she did.

Williams finished the year at No. 1 in the WTA rankings. She topped $6.5 million in prize money, breaking the single-season tour record by more than $1 million. She won three significant singles titles — Wimbledon, the Australian Open and the season-ending tour championships — and paired with sister Venus to win three Grand Slam doubles championships.

"An incredible performance," Allaster said. "Her game just continues to improve through this long career she's had."

Williams went 50-12 in singles, an .806 winning percentage that was the highest for any woman who played at least 20 matches in 2009. She tied for the tour lead in singles titles. She led the tour with 381 aces, 75 more than anyone else, and also led in percentages of first-service points won and service games won.

Her two Grand Slam singles titles raised her career total to 11, the most among active women. At the year's other two majors, she lost to the eventual champion: Svetlana Kuznetsova at the French Open, Kim Clijsters at the U.S. Open.

"Serena really peaks for those big moments on big stages," Allaster said.

Zenyatta, the 5-year-old mare who capped her 14-0 career by becoming the first female horse to win the Breeders' Cup Classic, finished second for the AP honor — with 48 fewer votes than Williams. For context: Last year's AP honoree, WNBA star Candace Parker, edged runner-up Lorena Ochoa by a single vote, while two other athletes finished within seven votes of Parker.

Clijsters, who came out of retirement only weeks before winning the U.S. Open, was third in 2009 with 16 votes. Lindsey Vonn, who won her second consecutive overall title in Alpine skiing's World Cup, finished third with 15 votes, followed by Diana Taurasi, the WNBA's MVP, who received 14.

In what was widely considered the best women's tennis match of 2009, Williams was one point from defeat before coming back to beat Beijing Olympics gold medalist Elena Dementieva 6-7 (4), 7-5, 8-6 in the Wimbledon semifinals. The affair lasted 2 hours, 49 minutes — longer than any All England Club women's semifinal or final on record.

Williams hit 20 aces in that victory, then beat her older sister in the final two days later.

The younger Williams also beat her sibling in the season-ending tour championships title match on Nov. 1.

And what does she have planned for 2010?

"My goal is to have a better year than '09 — and to stay healthy," Williams said, "and I think if I can do that, I'll be fine."

China expands Internet controls

BEIJING – China has issued new regulations that expand its Internet controls by tightening procedures for domain name registration.

The Ministry of Industry and Information Technology posted the new rules over the weekend, part of a three-phase plan to target what it called pornography accessible through cell phones.

The regulations require telecom companies and Internet service providers to carry out "complete and thorough" checks to determine if Web sites are officially registered. Any Web sites that have not registered with the ministry should be taken off the Internet, the order says.

But the new rules have the potential to freeze out thousands of legitimate Web sites by creating a pre-approved "whitelist" of sites.

It also tightens the registration process for domain names. Any service provider must have a business license and the Web site itself must also have a business license or be registered — which would appear to prohibit sites set up by individuals.

It was unclear if the new rules would apply to foreign Web sites, though many sites have already been blocked by China's Internet authorities, including Youtube, Facebook, Twitter and host of other media and news Web sites.

Beijing's pervasive policing of cyberspace and attempts to block the Internet — among the world's most stringent — are often referred to as the "Great Firewall of China."

The communist government says the main targets of its Web censorship are pornography, gambling and other sites deemed harmful to society. Critics, however, say that often acts as cover for detecting and blocking sensitive political content.

Earlier this year, China had backed down from a requirement for new computers to be loaded with a controversial Internet-filtering software known as Green Dam Youth escort after a major outcry from Chinese citizens and computer companies. That software had also been introduced as a filter against porn.

Dems, White House predict success on health care


The White House and Democrats are confidently predicting Senate passage of President Barack Obama's health overhaul by Christmas after the bill cleared its second 60-vote test.


"The finish line is in sight," Finance Committee Chairman Max Baucus, D-Mont., said Tuesday at a press conference with other Senate leaders and cheering supporters. "We're not the first to attempt such reforms but we will be the first to succeed."

At the White House, spokesman Robert Gibbs said: "Health care reform is not a matter of if. Health care reform is now a matter of when."

Senate Democrats remained united early Tuesday behind their compromise bill, over steadfast Republican opposition. A motion to shut off debate and move to a vote on a package of changes by Senate Majority Leader Harry Reid passed 60-39.

`Survivor' winner: Quitting job for show a gamble

LITTLE ROCK, Ark. – The winner of the CBS reality television show "Survivor: Samoa" says she took a huge gamble by quitting her job to be on the show.

The gamble paid off Sunday for 26-year-old Natalie White of Van Buren, Ark., when it was revealed she won the competition and $1 million prize.

White had worked as a saleswoman for Teva Pharmaceuticals USA for about 15 months.

She told the Arkansas Democrat-Gazette in Tuesday editions that she loved the job, but appearing on the show was a "once-in-a-lifetime opportunity" and she would've been crazy not to take it.

White says she still has the check and plans to hire an accountant but otherwise doesn't know what's in her future.

She says she plans to stay in Arkansas for now while waiting to see what opportunities may arise.

Terrorist attack feared after Jackson arrest


NEW YORK – Police concerns about a terrorist attack stemming from the 2003 arrest of Michael Jackson led to a request for federal help, according to FBI files kept on the late pop star.

The Santa Maria Police Department in California asked for FBI "involvement" after Jackson was arrested for child molestation. Police, according to the FBI, said they believed the court case would be a "soft target" for terrorism because of "worldwide media coverage."

The FBI concluded there were no threats, but did note the presence in an early court appearance of "The Nation of Islam, represented by its security unit Fruits of Islam," and of a "New Black Panther Party" member whose name was left blank in the files.

The files also show that the FBI's legal office in London assisted local authorities with a child molestation probe in 1993 and in 1995, U.S. customs officials asked the FBI to analyze a VHS videotape as part of a child pornography investigation.

The documents were released Tuesday through a Freedom of Information Act request from The Associated Press and other media.

Eurostar resumes service between Paris and London

PARIS – Eurostar resumed its high-speed rail service linking Britain, France and Belgium on Tuesday after a three-day suspension that stranded tens of thousands of holiday travelers and left French President Nicolas Sarkozy indignant.

The first train pulled out of the Gare du Nord station in Paris shortly after 8 a.m. (0700 GMT) carrying 750 passengers, many of whom had been stranded for days. Hundreds of others waited in a line that stretched across the cavernous Paris train station, as Eurostar staff circulated with trays of pastries and coffee in paper cups.

Terminal manager Nelly Clair-Meunier said people who were supposed to travel over the weekend were being given priority on Tuesday's trains, which were expected to leave hourly throughout most of the day. That represented about two-thirds of Tuesday's regularly scheduled trains, she said.

"It's going quite well," Clair-Meunier told The Associated Press. "The passengers were quite happy and they were thanking us for getting to travel on that first train."

Claire Morley, a 23-year-old student from Paris, said she and her traveling companion had been waiting in line since 5:30 a.m. (0430 GMT). Both were scheduled to travel Tuesday and had been closely following news of Eurostar's suspension throughout the weekend.

"It's supposed to be a pleasurable trip, just a little holiday," Morley said of her planned three-day stay in the British capital. "It's not starting off on such a relaxing note, though," she said as she boarded the first train of the day.

Others, like Britain's Isabella Comba, were worried about making connections to flights and other trains in London.

"My mother's sick, said I really want need to get home to be by her bedside," said Comba, who works at Sotheby's auction house and was hoping to catch an afternoon train to Cornwall, in southwestern England. "It will really throw off my plans if I'm not able to get to London today."

Officials at the Eurostar train company said they had identified the problem that caused trains to break down in the Channel Tunnel — unusually dry, powdery snow that got into the engines.

As many as 40,000 people have been affected by the suspension. Eurostar offered its "deepest apologies" and promised compensation.

Jennifer Eboule, another French student waiting in line at Gare du Nord, said things were "going smoothly" Tuesday morning but complained about Eurostar's overall handling of the incident.

"It's not like it never snowed before," said the 21-year-old. "It's hard to understand how something like that could cause such a big problem."

President Sarkozy summoned the head of France's SNCF rail operator into the Elysee Palace on Monday for a one-on-one meeting and ordered him to get the Eurostar moving again, saying the situation was "unacceptable for travelers."

Problems started Friday after five trains failed inside the Channel Tunnel, trapping more than 2,000 passengers for hours in stuffy and claustrophobic conditions. Exhausted, sometimes teary-eyed passengers appeared in British and French TV broadcasts complaining that they had been left underground for more than 15 hours, without food, water or any clear idea of what was going on.

Eurostar's CEO Richard Brown, who has faced stiff criticism over the company's handling of the crisis, pledged that "we will be doing our very best to get everyone home by Christmas."

The company's operations chief, Nicolas Petrovic, said dry snow had got past the train's snow-screens and into the engines Friday. Then the snow turned into condensation inside the Channel Tunnel, where temperatures were higher than those outside. That condensation caused the trains' electrical circuits to fail, he said.

"It's the first time we have these snow conditions in 15 years," he said, adding that normally snow in the region tends to be wet and heavy. Eurostar has commissioned an independent review into the problems.

While Eurostar works on getting the huge backlog of passengers home, it is blocking any new ticket sales until after Christmas.

Petrovic blamed Eurotunnel, which operates the Channel Tunnel, for the delay in rescuing passengers from the stuck trains, and did not exclude possibility of legal action.

Ahmadinejad dismisses US deadline for nuclear deal


TEHRAN, Iran – Iran's president on Tuesday dismissed a year-end deadline set by the Obama administration and the West for Tehran to accept a U.N.-drafted deal to swap enriched uranium for nuclear fuel, and claimed his government is now "10 times stronger" than a year ago.

Mahmoud Ahmadinejad also accused the U.S. of fabricating a purported Iranian secret document that appears to lay out a plan for developing a critical component of an atomic bomb.

Ahmadinejad's remarks underscored Tehran's defiance in the nuclear standoff — and also sought to send a message that his government has not been weakened by the protest movement sparked by June's disputed presidential election. He spoke a day after the latest opposition protest by tens of thousands mourning a dissident cleric who died over the weekend.

President Barack Obama has set a rough deadline of the end of this year for Iran to respond to an offer of dialogue and show it will allay fears of weapons development. Washington and its allies are warning of new, tougher sanctions on Iran if it doesn't respond.

The U.N.-proposed deal is the centerpiece of the West's diplomatic effort. Under the deal, Tehran would ship most of its stockpile of low-enriched uranium abroad to be processed into fuel rods, which would ease the West's fears that the material could be used to produce a nuclear weapon.

Iran, which denies it seeks to build a bomb, has balked at the deal's terms.

The international community can give Iran "as many deadlines as they want, we don't care," Ahmadinejad said in a speech to thousands of supporters in the southern city of Shiraz.

Ahmadinejad dismissed the threat of sanctions, saying Iran wants talks "under just conditions where there is mutual respect."

"We told you that we are not afraid of sanctions against us, and we are not intimidated," he said, addressing the West. "If Iran wanted to make a bomb, we would be brave enough to tell you."

As the crowd cheered: "We love you, Ahmadinejad," the Iranian leader lashed out at Washington, vowing Iran will stand up against U.S. attempts to "dominate the Middle East."

The U.S. responded sternly, warning Iran's leader to take the year-end deadline seriously. "It is a very real deadline for the international community," said White House press secretary Robert Gibbs.

In Paris, Foreign Minister Bernard Kouchner said the chances of finding a diplomatic solution to the nuclear standoff with Iran were "never very significant" and that in the "worst case," France will bring up the issue of new sanctions on Tehran.

"We all have talked about bringing that (sanctions) up before the end of the year," Kouchner said, but also cautioned, "We mustn't exaggerate the deadline. It's not a cleaver, which would mean that after a certain day we wouldn't speak to one another again."

In a separate interview with ABC News, Ahmadinejad accused the U.S. of forging the document that appears to describe an Iranian work plan for developing a neutron initiator, a key component in detonating a nuclear bomb.

"They are all a fabricated bunch of papers continuously being forged and disseminated by the American government." He said the accusations that Iran seeks a weapon has "turned into a repetitive and tasteless joke." The comments were aired Monday night.

The memo was first reported in the British newspaper Times of London. U.S. officials have said it's unclear whether the document is real.

In his speech Tuesday, Ahmadinejad also shrugged off Iran's continued political turmoil since the June election, which the opposition says Ahmadinejad won by fraud. Large street protests have continued despite a fierce government crackdown. In the latest, tens of thousands turned out for the funeral of Ayatollah Hossein Ali Montazeri, who died Sunday, and chanted slogans against the country's rulers.

Ahmadinejad did not directly mention the protests. But he said the West mistakenly believed that Iran "has been weakened."

"The people of Iran and the government of Iran are 10 times stronger than last year," he said. "I want the whole world to know it's impossible for Iran to allow the United States to dominate the Middle East."

Iran says its nuclear program is intended only to generate electricity and that it has a right to proceed with uranium enrichment, which the United Nations has demanded it suspend. The process can produce low-enriched uranium used to fuel a nuclear reactor — or higher enriched uranium, which is the basis for building a nuclear warhead.

Under the deal brokered by the U.N. nuclear watchdog agency last month, most of Iran's low-enriched uranium would be shipped abroad, where it would be enriched further to produce fuel rods. The rods would then be returned to Iran for use in a research reactor in Tehran, but it would not be possible to enrich them further to a high enough level to build a bomb.

Iran's response has been unclear, with officials floating a number of alternative ideas for a swap — including carrying out the exchange simultaneously or in stages. At times, Tehran has threatened to reject it outright and enrich its own fuel rods, though last week Foreign Minister Manouchehr Mottaki said Tehran was still open to the idea of an exchange.

Gunmen kill family of Mexican drug war hero



MEXICO CITY – Gunmen have killed the family of a Mexican marine who died during a raid that took down powerful drug kingpin Arturo Beltran Leyva.


Police say the attack happened shortly before midnight Monday at the home of fallen marine Melquisedet Angulo — just hours after the military honored him as a national hero during a memorial service.

A federal government official tells The Associated Press that the dead include Angulo's mother, two siblings and an aunt. An unidentified woman is being treated at a hospital. The family was attacked at their home in the Gulf coast state of Tabasco, where the Beltran Leyva cartel has a strong presence. The official cannot be named under departmental rules.

Angulo and Beltran Leyva were both killed during a shootout last week between marines and the cartel.

FBI investigates Russian hacker attack on Citigroup




WASHINGTON - The FBI is investigating a hacker attack on Citigroup Inc. that led to the theft of tens of millions of dollars, The Wall Street Journal reported today.

Citing anonymous government officials, the Journal reported that the hackers were connected to a Russian cyber gang. Two other computer systems, at least one of connected to a U.S. government agency, were also attacked.

Citigroup denied the report. "We had no breach of the system and there were no losses, no customer losses, no bank losses," said Joe Petro, managing director of Citigroup's Security and Investigative services. "Any allegation that the FBI is working a case at Citigroup involving tens of millions of losses is just not true."

The Journal reported that the attack on Citigroup's Citibank subsidiary was detected over the summer, although it may have occurred up to one year earlier. The FBI, the National Security Agency, the Homeland Security Department and Citigroup worked together to investigate the attack.

Cyber crime is of increasing concern to businesses and the federal government, with President Barack Obama calling it one of the "most serious economic and national security challenges we face."

On Tuesday, Obama announced the appointment of Howard A. Schmidt, a former eBay and Microsoft executive, as the government's cyber security coordinator.

Internet attacks on banks are very common, said Tom Kellermann, a former senior member of the World Bank's Treasury security team and now vice president of security awareness for Core Security Technologies.

While he said he has no knowledge of an attack specific to Citigroup, Kellermann said Tuesday that large financial institutions are "consistently targeted" by criminal organizations in Eastern Europe, Brazil and Southeast Asia.

"Ninety-eight percent of bank heists are now occurring virtually and not in the real world," he said, adding that the industry is "hemorrhaging funds" as a result.

Banks that accept deposits made more than 53,000 reports of wire transfer fraud between April 1996 and the end of 2008, according to the Department of Treasury's Financial Crimes Enforcement Network. These reports are filed when a bank suspects criminal activity, though they are not necessarily evidence that a crime was committed. Nevertheless, such reports have been increasing. Nearly 15,000 of these reports were filed in 2008, up from 9,300 the year before.

It's often difficult to determine who pulled off a virtual bank heist. Hackers tend to use "botnets," worldwide networks of "zombie" personal computers they've infected with viruses without the knowledge of the computers' owners.

And even if the hackers are caught, punishing them is another hurdle.

"Less than 30 countries have actually criminalized cybercrime," Kellermann said.

FBI assisted authorities in Jackson probes

LOS ANGELES – Newly released documents show the FBI assisted local authorities in the U.S. and in Britain as they investigated Michael Jackson for child molestation.

According to documents released Tuesday through a Freedom of Information Act request from The Associated Press and other media, the FBI assisted local authorities on several occasions from 1993 to 2005.

The FBI's legal office in London assisted local authorities with a child molestation probe in 1993 and in 1995 U.S. customs officials asked the FBI to analyze a VHS videotape as part of a child pornography investigation.

The files also detail an investigation in Los Angeles into extortion threats against Jackson and others in 1992.

The subject of that investigation pled guilty and was sentenced to prison in 1993.

Pakistani court orders 2 men's noses, ears cut off

LAHORE, Pakistan – A Pakistani court has ordered the noses and ears of two men cut off after they did the same thing to a young woman whose family spurned one of the men's marriage proposal, a prosecutor said Tuesday.

The anti-terrorism court in the eastern city of Lahore said it was applying Islamic law by ordering the punishment.

Lahore prosecutor Chaudhry Ali Ahmed said one of the accused, Sher Mohammad, was a cousin of the 19-year-old woman and wanted to marry her. Her parents refused his proposal.

Sher Mohammad and a friend, Amanat Mohammad, were accused of kidnapping the woman and cutting off her ears and nose in late September in the Raiwind area of Lahore.

The court on Monday also sentenced each man to 50 years in prison and told them to pay fines and compensation to the woman amounting to several thousand dollars, the prosecutor said.

Pakistan's legal system has Islamic elements that sometimes lead to orders for harsh punishments, but the sentences are often overturned and rarely carried out. Serious crimes are often referred to anti-terrorism courts in Pakistan because they move faster.

Violence against women, especially attacks by spurned lovers, also occurs frequently in this impoverished South Asian nation.

The men have seven days to appeal the ruling, Ahmed said.

Brazil court to rule today on American's custody appeal

RIO DE JANEIRO - Brazil's Supreme Court chief justice is expected to rule today on an appeal that a U.S. father hopes will reunite him with his young son after a five-year custody battle.

A Supreme Court official said that the decision by Chief Justice Gilmar Mendes would be issued before the end of the day. It originally was set for release Monday, but was delayed for unexplained reasons. The official spoke on condition of anonymity because she was not authorized to discuss the case.

David Goldman, a New Jersey man who has pledged to fight for his 9-year-old son, Sean, as long as it takes, was still holding out hope of being reunited in time to celebrate the holidays with his son in the United States.

Mendes will rule on appeals made by Goldman and Brazil's attorney general seeking to lift a stay on a lower court's order that Sean be handed over to his father.

If Mendes lifts the stay, a lawyer for the Brazilian family said the family would continue its legal battle to keep the boy in Brazil.

When the ruling is issued, "we will read it carefully and consider the legal remedies available, if needed," Sergio Tostes said in an e-mailed statement. "All necessary action will be taken."

The family could take the case to Brazil's top appeals court, but some have doubted whether that court would be willing to review the case if the Supreme Court backs a lower federal court ruling awarding custody to Goldman.

Tostes previously said he would like to see a negotiated settlement, saying he wanted to end the damage being done to Sean and to U.S.-Brazil relations.

But Goldman said that as the child's only surviving parent he wasn't interested in shared custody.

New Jersey Rep. Chris Smith, in Brazil to support Goldman, expressed optimism Monday that the case would be resolved in the U.S. man's favor.

"I think it is only a matter of 'when' and not 'if,' and we are hoping that the abductors will convey this young boy … as soon as the chief justice renders his decision," the Republican congressman said.

Goldman, 42, launched his case in U.S. and Brazilian courts after Sean was brought by his mother in 2004 to her native Brazil, where she then divorced Goldman and remarried. She died last year in childbirth, and the boy has lived with his stepfather since.

The lawyer for the boy's Brazilian family offered to negotiate a settlement, and the family also invited Goldman to spend Christmas with them. Goldman has not said whether he would accept the invitation if the case was not resolved this week.

The case has affected diplomatic ties between Brazil and the United States, reaching talks between President Barack Obama and his Brazilian counterpart, Luiz Inacio Lula da Silva. Democratic New Jersey Sen. Frank Lautenberg has blocked the renewal of a $2.75 billion trade deal that would lift tariffs on some Brazilian exports.

The U.S. State Department pressed for the boy to be returned. But a Brazilian Supreme Court justice last week stayed a lower court decision ordering Sean to be turned over to his father.

Goldman and Brazil's attorney general both filed appeals asking the Supreme Court to overturn the justice's decision to block Sean's return while the court considers hearing direct testimony from the boy.

Police: Body found in river missing American man

FRANKFURT – German police say that the body of a man pulled from the Rhine River has been identified as missing 22-year-old American Devon Hollahan.

Frankfurt police said Tuesday that Hollahan, from Arizona, who was reported missing Nov. 21, was positively identified through DNA testing. His body was pulled from the Rhine Dec. 15 near the town of Boppard, which is about 60 miles (100 kilometers) northwest of Frankfurt.

Police said that Hollahan died from drowning and they don't suspect foul play.

Suicide bomber kills 3 near NW Pakistan press club

PESHAWAR, Pakistan – A suicide bomber detonated his explosives outside a press club in the northwestern city of Peshawar on Tuesday, leaving three people dead in an attack that comes at a time of growing violence and political turmoil in Pakistan.

A policeman tried to search the attacker as he approached the press club's gate, but the man resisted and was able to trigger his explosives, killing the officer and an accountant who worked for the organization, said Peshawar's police chief, Liaquat Ali Khan.

A woman who was at the site of the attack died of a heart attack caused by the shock of the bombing, said Sahib Gul, a doctor at a hospital in Peshawar where the three bodies were brought.

Adil Khan, a local photographer who was inside the press club when the attack occurred, said he heard the police officer at the gate, Muhammad Riaz, trying to force the bomber to submit to a search.

"Suddenly a big explosion occurred and smoke made me unable to see immediately what happened," said Khan. "After a while, I saw Riaz and accountant Mian Iqbal lying dead in a pool of blood and there were some scattered body parts."

Seventeen other people were injured in the attack, many of whom were traveling in a bus that passed the press club when the explosion occurred, said Gul.

The blast blew out the club's windows and peppered the wall with shrapnel, while also damaging several surrounding buildings.

Peshawar has been hit by at least seven attacks in the past two months in retaliation for a military offensive launched in mid-October against the militant stronghold of South Waziristan in Pakistan's lawless tribal area near the Afghan border. A single attack in late October in a market popular with women and children in Peshawar killed 112 people.

The government has pledged to persevere despite the violence. But growing political turmoil threatens to distract leaders after a Supreme Court decision to strike down an amnesty protecting several senior officials, including President Asif Ali Zardari, from corruption charges.

Former President Pervez Musharraf issued the amnesty in 2007 as part of a U.S.-backed deal to allow Zardari's wife, former Prime Minister Benazir Bhutto, to return from self-imposed exile. Bhutto was killed in a bombing in December of that year, and Zardari led the party to an election victory in 2008.

One of those affected by the Supreme Court ruling was Interior Minister Rehman Malik, who was convicted several years ago of fleeing the country to avoid two corruption cases and sentenced to three years in prison.

An appeals court in the city of Lahore on Tuesday suspended the prison sentence, allowing Malik to avoid arrest until the judges begin hearings at the end of January. Malik told reporters he was falsely accused.

Since last year's elections, Zardari has battled both the opposition and a growing insurgency from Taliban and al-Qaida militants who have declared war on the government.

The Peshawar Press Club targeted in Tuesday's attack is a well-known landmark in the city, and many journalists congregate there.

"Journalists have played a vital role in our war by exposing the terrorists, so they are on the target list too like mosques, bazaars and security institutions," said Mian Iftikhar Hussain, the information minister for Northwest Frontier Province, where Peshawar is the capital.

The press club's president, Shamim Shahid, praised the police officer who prevented the bomber from entering the building.

"The policeman averted a major incident by sacrificing his life," said Shahid.

12 Most Shocking Moments of 2009

MICHAEL JACKSON DIES

When Michael Jackson died suddenly on June 25 at age 50, the world seemed to stop just long enough for fans to mourn, moonwalk and reminisce across generations of "Thriller" lovers. No doubt about it, the King of Pop left behind a rich legacy of musical greatness – but also a complex one, marked by increasingly erratic behavior.He also left behind three children – Blanket, 7; Paris, 11; and Prince Michael, 12 – looming legal battles and a stunning final act: the over $100 million-grossing film This Is It, featuring rehearsal shots from the sold-out comeback tour that never was.


 
MIRACLE CRASH ON THE HUDSON

It could have ended tragically. But when US Airways flight 1549 to Charlotte, N.C., made an emergency landing in the Hudson River off midtown Manhattan on Jan. 15, all 155 people aboard escaped alive. Credit goes to "hero pilot" Capt. Chesley "Sully" Sullenberger III for calmly gliding the plane into the water after a flock of geese knocked out both engines. "In hindsight," he told PEOPLE in February, "I think something remarkable did happen that day."




CHRIS BROWN ASSAULTS RIHANNA

Rihanna and Chris Brown were supposed to perform at the Grammys on Feb. 8 – instead, Brown was charged withattacking his then-girlfriend on the eve of the show, and Rihanna dropped out of sight. Ultimately, Brown was forbidden from contacting his now ex-girlfriend for five years, received five years' probation and had to attend a domestic violence class. Months later, Rihanna broke her silence in Glamour, saying she was "stronger, wiser and more aware" – and ready to speak for battered women.



JAYCEE DUGARD FOUND ALIVE

Nearly two decades after a sex offender abducted her as she walked to a school bus stop, Jaycee Lee Dugard, 29, was discovered in August living in a maze of lean-tos and tents in Phillip Garrido and wife Nancy's Antioch, Calif., back yard, where she also bore him two daughters, now 15 and 11. While the Garridos have pleaded not guilty to 29 charges – including rape and kidnapping – Dugard and her family have begun the healing process. "All of us are doing very well under the circumstances," her mom, Terry Probyn, said in a statement. "Miracles can happen."



BALLOON BOY HOAX

When a silver balloon lifted off in Ft. Collins, Colo., on Oct. 15 reportedly carrying 6-year-old Falcon Heene, the quest to save him made for gripping live TV. But the real drama would come later: The boy, a son of a thrill-seeking reality show couple, was never onboard; he was in his family's attic. Parents Richard and Mayumi Heene initially said the incident wasn't a stunt, but after a federal investigation, Mayumi pleaded guilty to a misdemeanor – for false reporting to authorities. Then on Nov. 13, her husband pleaded guilty to a felony charge of attempting to influence a public servant.


LETTERMAN'S BLACKMAIL CONFESSION

On Oct. 1, David Letterman took a break from the humor for two startling, serious revelations: First, he was the victim of a $2 million extortion plot attempt and, second, he had sex with staff members. In the following days, a grand jury indicted CBS news producer Robert Joel "Joe" Halderman for extortion – and Letterman publicly apologized to his staff and wife Regina Lasko for his infidelities. While the legal matter is ongoing, there has been one positive outcome for Letterman: His ratings have not suffered at all.




DAISY GETS COYOTE-NAPPED


It happened right before Jessica Simpson's eyes:A coyote snatched the little maltipoo she called Daisy, her beloved pet of five years, on Sept. 14."My heart is broken," the singer Tweeted after the incident. With her maternal instinct kicking in, Simpson held out hope that Daisy would return safely – even offering a reward for her recovery. But after being inundated with false sightings, the singer eventually conceded that her pup was gone for good, Tweeting on Oct. 12, "Please respect her memory."




MACKENZIE'S INCEST SECRET

Mackenzie Phillips dropped a bombshell this September in her tell-all book High on Arrival: that her father, musician John Phillips, raped her at 19 and engaged with her in a long-term incestuous relationship. "My father was not a man with boundaries," she wrote. "He was full of love, and he was sick with drugs." While some of his surviving family met her dark accusations with doubt, Phillips took her story to Oprah and the Today show, and had the support of half-sister Chynna. And people were listening: Calls to the National Sexual Assault Hotline spiked 26 percent following her revelation.



SARAH PALIN RESIGNS

"You can effect change from the outside, and I can, too," former Republican VP candidate Sarah Palin told a stunned nation on July 3 outside her Wasilla home as she announced she was resigning as Alaska's governor. Speculation pointed to a coming Senate run or scandal, but Palin clarified things days later, telling NBC News that ethics challenges and the scrutiny of the spotlight had impeded her day-to-day work. By November, she was back on the campaign trail – for her bestselling book, Going Rogue.



MIAMI PRIEST IN LOVE

Known to many as Padre Alberto, dashing Roman Catholic priest and media personality Alberto Cutié found himself in a public crisis of faith after photos of him kissing a woman hit the press. Yanked from his radio and TV programs, Cutié grappled with leaving the church for Ruhama Buni Canellis, his longtime girlfriend. In the end, he went with his heart, but also kept his faith: Cutié joined the Episcopal Church and, on June 16, wed Canellis in a civil ceremony.



S.C. GOVERNOR ADMITS AFFAIR

His staff said he was "hiking the Appalachian Trail," but South Carolina governor Mark Sanford was actually in Buenos Aires, where he was having an affair with a "dear, dear friend from Argentina." In a tearful press conference June 24, Sanford apologized to wife Jenny, his four sons and his staff for misleading them. In the fallout, he resigned as Chairman of the Republican Governors Association and his wife eventually filed for divorce – but he retained his elected post.



TIGER'S FALL FROM GRACE

In the wake of his Thanksgiving night car accident, rumors swirled that golf great Tiger Woods had been cheating on his wife Elin Nordegren – and an argument with his angry wife predicated his crash. In a statement on his Web site, Woods addressed the allegations of cheating – sort of – writing, "I have let my family down and I regret those transgressions with all of my heart ... I am not without faults and I am far short of perfect." Nor was the scandal far from over, as the athlete was eventually linked to a dozen women, including porn star Holly Sampson and Tool Academy alum Jamiee Grubbs, who apologized for the affair.

 


Police say suicide bomber kills 3 in NW Pakistan

PESHAWAR, Pakistan – A suicide bomber detonates his explosives outside a press club in northwestern Pakistan, leaving three people dead in the latest attack against the city of Peshawar since the military launched a major offensive near the Afghan border.

A policeman tried to search the attacker as he approached the press club's gate, but the man resisted and was able to trigger his explosives, killing the officer and an accountant who worked for the organization, said Peshawar's police chief, Liaquat Ali Khan.

A third person — a woman who was at the site of the attack — apparently died of cardiac arrest, said Sahib Gul, a doctor at a hospital in Peshawar where the bodies were brought.

Adil Khan, a local photographer who was inside the press club when the attack occurred, said he heard the police officer at the gate, Muhammad Riaz, trying to force the bomber to submit to a search.

"Suddenly a big explosion occurred and smoke made me unable to see immediately what happened," said Khan. "After a while, I saw Riaz and accountant Mian Iqbal lying dead in a pool of blood and there were some scattered body parts."

Seventeen other people were injured in the attack, many of whom were traveling in a bus that was passing the press club when the explosion occurred, said Gul.

The blast blew out the press club's windows and peppered the walls with shrapnel, while also damaging several surrounding buildings.

Peshawar has been hit by at least seven attacks in the past two months in retaliation for a military offensive launched in mid-October against the militant stronghold of South Waziristan in Pakistan's lawless tribal area near the Afghan border. A single attack in late October in a market popular with women and children in Peshawar killed 112 people.

The Peshawar Press Club targeted in Tuesday's attack is a well known landmark in the city, and many journalists congregate there.

"Journalists have played a vital role in our war by exposing the terrorists, so they are on the target list too like mosques, bazaars and security institutions," said Mian Iftikhar Hussain, the information minister for Northwest Frontier Province, of which Peshawar is the capital.

A provincial labor minister had been scheduled to hold a news conference at the club later Tuesday, said the organization's president, Shamim Shahid.

He praised Riaz, the police officer who prevented the bomber from entering the building.

"The policeman averted a major incident by sacrificing his life," said Shahid.

The chief minister of the province, Amir Haider Khan Hoti, described the bombing as an attack on press freedom.

"We salute the media for ... exposing militants and their acts against innocent people," he said, adding that "terrorists are becoming desperate as they know they are losing this war, so they are attacking the media directly."

Israel gives response to Hamas prisoner swap offer


JERUSALEM – Israel would approve a proposed prisoner swap deal with Gaza's Hamas rulers if they agree to the deportation of some Palestinian prisoners selected as part of a trade for a lone Israeli soldier, Israeli media reported Tuesday.

Israel relayed its response to the proposed swap and handed over a list of Palestinians it wants exiled, Israeli radio stations and news Web sites said without naming the sources of their information.

A senior Hamas official, speaking on condition of anonymity because he wasn't authorized to release details of the talks, confirmed receipt of the Israeli answer. The Hamas government was scheduled to hold its weekly meeting later Tuesday, and the deal was likely on the agenda.

A whirlwind of activity at top levels of the Israeli government had suggested a deal to swap 1,000 Palestinians for 23-year-old Sgt. Gilad Schalit could be close.

Prisoner exchanges are controversial in Israel because of their potential to encourage militants to take more hostages. A deal perceived as favoring Gaza's Islamic militant rulers would also seem to run counter to Israeli Prime Minister Benjamin Netanyahu's call for an uncompromising war on Palestinian violence.

But many Israelis have taken the plight of Schalit to heart and fervently want him freed after 3 1/2 years of captivity, even if the price is high.

Should Israel agree to Hamas' demands, the Islamic militants could receive a hefty boost in their rivalry with the Western-backed Fatah movement, which controls the West Bank. Hamas also hopes an Israeli-led blockade of Gaza would be relaxed because Israel vowed to keep the restrictions as long as Schalit was a captive.

Israeli leaders ended debates on the latest proposal early Tuesday without announcing a decision.

An Israeli government official declined to confirm the Israeli media reports but said the question of whether certain prisoners would return to the West Bank or be deported was "clearly" an issue.

He spoke on condition of anonymity because he was not authorized to release details of the talks.

A Palestinian close to the negotiations had said the German mediator carrying Hamas' proposal had given Israel until Wednesday to take action. He spoke on condition of anonymity because he wasn't authorized to speak to the media.

Netanyahu might score points at home by ending the young man's ordeal, but a large-scale release could also hurt his standing among Israelis who feel releasing prisoners convicted of violence would only invite more bloodshed.

Israel had balked at Hamas' demand to release Palestinians convicted of major attacks such as the bombing of a Passover celebration that killed 30 people in 2002.

It sees deportation of such militants as a way to defuse any outcry, on the assumption they would be less able to harm Israel from other countries or Gaza than from their homes in the West Bank.

Prisoners have near-iconic status in Palestinian society because nearly every family has had relatives in Israeli jails, so Hamas' stock could soar if it can claim credit for the largest prisoner release in years.

Hamas might use a swap to defend its claim that armed struggle is the only way to pry concessions from Israel. That argument could further undercut Hamas' main rival, Palestinian President Mahmoud Abbas, who has had little to show for years of peace efforts.

Abbas could be in even bigger trouble if Israel releases Marwan Barghouti, a popular grass-roots leader who is Abbas' key challenger inside Fatah. Barghouti, convicted in the deaths of five people, is said by a Palestinian close to the talks to be on the list of those to be freed, and is considered a strong contender to unseat Abbas.

Hamas hopes a prisoner exchange would ease the Israeli and Egyptian blockade of impoverished Gaza, which has prevented the tiny territory from rebuilding after Israel's devastating offensive there a year ago.

Israel tightened access to Gaza after Schalit was captured in a cross-border raid in 2006. It then sealed off the territory, home to 1.5 million Palestinians, to all but humanitarian aid after Hamas violently seized power the following year.

Ahmadinejad dismisses US deadline for nuke deal


TEHRAN, Iran – Iran's president has dismissed a year-end deadline set by the Obama administration for Tehran to accept a U.N.-drafted deal to swap enriched uranium for nuclear fuel.

The deal aims to diminish Iran's stockpile of enriched uranium, easing the West's fears that the material could be used to produce a nuclear weapon. Iran, which denies it seeks to build a bomb, has balked at the deal's terms.

Mahmoud Ahmadinejad says that "if Iran wanted to make a bomb, we would be brave enough to tell you."

He says the West can give Iran "as many deadlines as they want, we don't care."

Ahmadinejad spoke on Tuesday to supporters in the southern city of Shiraz. He lashed out at Washington, saying Iran won't allow the U.S. to dominate the region.

"Avatar" could get nine Oscar nominations

LOS ANGELES (Hollywood Reporter) – Since June, when the Academy of Motion Picture Arts and Sciences opened the best picture race to 10 nominees, Oscar has been waiting for a knight in shining box office armor -- preferably a "Dark Knight": a commercial powerhouse with strong critical credentials.

A large part of the rationale for opting for an Oscar Top 10 was the hope that Academy voters would embrace mainstream hits, thereby expanding the potential audience for the broadcast while avoiding the cries of protest from jilted fanboys who felt robbed when "The Dark Knight" failed to earn a best picture nomination last time around.

But then another "Dark Knight" failed to materialize immediately. Consider: Pixar's "Up," released in May and now the No. 3 domestic grosser of 2009, is regarded as a possible contender -- if it isn't relegated to the animated feature category. "The Hangover," the year's biggest comedy at No. 4, with $277 million, would have to overcome the hurdle that it is the year's biggest comedy. "Star Trek" might have attracted appreciative reviews and a No. 6 rank at the box office, but it doesn't seem to have inspired much Oscar buzz in the top categories.

In fact, you have to move all the way down the list of the year's top grossers to No. 22, "Inglourious Basterds," before finding another movie that appears to be in line for a best picture nomination.

But just when it appeared that a whole host of smaller, specialty films were lining up to fill the available slots -- in the process, undermining the Academy's attempt to reach out to a wider audience -- Fox's "Avatar," with a veritable flourish of trumpets, has ridden to the rescue.

There were plenty of skeptics awaiting the years-in-the-making film with a show-me attitude. But once it began screening two weeks ago, and in the wake of its opening Friday, James Cameron's space odyssey has redefined the awards-season contests.

Critically, the movie's collective reviews stand at 83 out of 100 on the Metacritic Web site. At RottenTomatoes.com, 83% of the movie's notices were positive, and among the site's sampling of top critics, the approval rate rose to 94%. Even the Los Angeles Times' Kenneth Turan, one of the loudest voices torpedoing Cameron's "Titanic" in 1997, hailed the filmmaker's new movie, praising it for restoring "a sense of wonder to the moviegoing experience" and testifying "the film's romantic protagonists paradoxically end up feeling like creatures whose fates we care more about than we did Leonardo DiCaprio and Kate Winslet's on the boat."

Commercially, "Avatar" appears on track as well. Its first-weekend domestic gross clocked in at $77 million, which was several million dollars higher than the studio's Sunday estimate. It remains to be seen whether it will attract the repeat business that floated "Titanic's" boat week to week. It's worth noting, though, that moviegoers showed a preference for seeing the movie in 3D -- 72% of the opening-weekend take came from 3D screens, 13% from Imax 3D screens. Since there's still a relatively limited number of 3D and Imax screens in play, that suggests the movie will play like an old-fashioned, leggy blockbuster, rather than the one- or two-weekend wonders of the standard superwide release, with moviegoers lining up for the available screens.

All of which brings us back to the Academy, where the movie officially screened at the Samuel Goldwyn Theater on Sunday evening. The audience was packed, and the response was huge, with waves of applause greeting individual names during the end credits.

Hollywood insiders, recognizing the technical leaps involved, already have begun applauding. None other than Steven Spielberg has called "Avatar" "the most evocative and amazing science-fiction movie since 'Star Wars.'"

But it's not just about technique. Thematically, the movie also might strike a nerve with the Academy. "Honestly, it's the most liberal, old-fashioned Hollywood movie in years," said one member of Sunday's audience. "It's eco-friendly, and it's a diatribe against George Bush's America, raping and pillaging sovereign nations for their resources."

So how big could "Avatar's" footprint be when the Academy noms are announced February 2?

Right now, the number that's being bandied about is nine -- drawn from a menu that includes best picture, director, visual effects, editing, art direction, sound, sound editing, score and song. (Cinematography, costumes and makeup are more of a stretch, given how much of that work was done digitally.)

Unlike "Titanic," which earned acting nods for Kate Winslet and Gloria Stuart, "Avatar" will have a tougher time winning over the actors branch unless it's feeling generous and rewards Sigourney Weaver with a supporting actress nomination for her feisty scientist.

By rights, Zoe Saldana also should be part of the conversation for her warrior princess Neytiri. But while the actress might have displayed her versatility with her equally high-profile appearance this summer as Uhura in "Star Trek," she's not seen in the flesh in "Avatar."

Even though the studio hopes to get out the message that the actors involved delivered full-blown performances that Cameron captured digitally, that's still a tough sell. Witness the fact that the Screen Actors Guild ignored "Avatar" when it handed out its noms last week. (One added factor: Most of the 2,300-member SAG nominating committee probably hadn't seen the movie by the time its nominating ballots were due December 14.)

But even though "Avatar" isn't expected to pick up the 14 noms that "Titanic" commanded, if it makes it into best picture contention, that will be an achievement in itself since the Academy -- at least under its old five-pic rule poise -- has been fairly resistant to fantasy and sci-fi movies in its top category.

Since 1977's "Star Wars," only 1982's "E.T. The Extra-Terrestrial" and the three "Lord of the Rings" movies at the beginning of this decade have made that select list of nominees. A movie like 1993's "Jurassic Park" -- groundbreaking in its day -- had to settle for visual effects and two sound noms, all of which it won.

"Avatar" is looking like it will join that club -- and potentially attract lots of self-proclaimed Avartards to the March 7 Oscar broadcast as well.

Adam Shankman, who's producing the show with Bill Mechanic, certainly was jazzed when he tweeted early Monday: "'Avatar' is not only brilliant but has the most powerful environmental message of the year. Amazing. Game-changer." Cue the dancing Na'vi.

Venice festival honors Woo with lifetime award

Organizers for the Venice Film Festival have honored John Woo with its lifetime achievement award, saying the veteran director transformed action movies both in his native Hong Kong and his current professional home of Hollywood.

Calling the 61-year-old filmmaker "an innovator of the contemporary language of cinema," festival organizers said in a statement posted on their official Web site Monday that they decided to award Woo the Golden Lion for lifetime achievement.

"The acknowledgment recognizes a filmmaker who in recent decades, with his revolutionary conception of staging and editing, has renewed action movies to the core, introducing an extreme stylization close to visual art, both in Asia and in Hollywood," organizers said.

"This is a surprise to me. I'm excited. I'm very grateful," Woo told The Associated Press in a phone interview from the eastern Chinese city Hengdian, where he is producing a new kung fu movie starring former Bond girl Michelle Yeoh.

"I feel very gratified that I can communicate with many people around the world and make many friends through movies," he said.

Woo made his name in Hong Kong with stylish action films like "A Better Tomorrow," "The Killer" and "Hard Boiled" before moving on to the U.S., where his credits include "Broken Arrow," "Face/Off" and "Mission: Impossible II." Woo recently returned to China to make the two-part historical epic "Red Cliff." His next project is a movie about the so-called "Flying Tigers" — American fighter pilots who defended China against Japanese invaders during World War II.

"In his war and gangster film masterpieces, Woo has been capable of transfiguring hyperbolic motion and exasperated violence with a highly original poetic and romantic infusion, sustained by an extremely personal and energetic figurative tension, similar to a surreal hallucination," organizers said.

The award will be presented at the 67th Venice Film Festival, which will be held from Sept. 1-11, 2010.

Former Hollywood executive sues TMZ for $20 million

A former Hollywood executive sued celebrity gossip outlet TMZ Monday for $20 million over an article that allegedly branded him a thief and a rapist.

Ronald Grigg, an attorney and former president of Jon Peters Entertainment, filed suit for defamation in Los Angeles Superior Court over a December 24, 2008 report entitled "Famous Producer Alleges Fraud, Theft, Date Rape." It detailed a lawsuit Peters had filed against Grigg.

"The article states that (Grigg) committed crimes during his employment, and as such, portrays him as a loathsome criminal," the complaint says.

When the lawsuit was filed, Grigg was in the middle of an employment dispute with Peters and suffered irreparable harm due to the statements in the article, he says.

Grigg claims TMZ failed to investigate the matter and include his side of the story in the article, giving rise to claims for libel and false light and at least $20 million in damages.

TMZ, run by attorney Harvey Levin who is also named in the suit, did not respond to a request for comment. But a perusal of its report indicated that it was careful to restate what was said in Peters' lawsuit, which is usually covered under the fair reporting privilege of the First Amendment.

Bruce Willis to take stake in France's Belvedere

U.S. actor Bruce Willis, already the advertising face of Belvedere's Sobieski vodka brand, will take a 3.3 percent stake in the French company to help drive its marketing strategy.

Belvedere's statement on Tuesday lifted the company's shares as much as 6.6 percent to 34 euros in early trading, giving it a market value of around 85 million euros ($122 million).

The stake of 83,000 shares will serve as payment to Willis, best known for the Die Hard movies, for a four-year deal to promote Sobieski worldwide, the company said.

Belvedere added on Tuesday that it expected sales of Sobieski, which was the family name of Polish monarchs, to more than double in the United States this year to around 5.18 million liters. Belvedere sought protection from creditors in July 2008 after breaking a bond covenant and has introduced a restructuring plan involving asset sales to help it exit the French "safeguard" procedure.

Les Echos reported on Tuesday that Belvedere should receive more than five offers for its Marie Brizard liqueur.

Candidates include La Reunion cane sugar and rum group Quartier Francais, spirits firm La Martiniquaise and Moscow-based businessman Mark Kaufman, the paper said.

There was no immediate comment from the potential buyers.

A spokesman for Belvedere said the sales process for Marie Brizard was ongoing and that the company planned to take a decision by June 30. He had no comment on the details in the article in Les Echos.