Myanmar says jets used against Kachin rebels

YANGON (Reuters) - Myanmar's military has used jets to attacks rebel fighters in northern Kachin state, the government said on Thursday, its first admission of an intensification of a conflict that has raised doubts about its reformist credentials.

Rebel sources have reported aerial bombings, shelling and even the use of chemical weapons since December 28 after the Kachin Independence Army (KIA) ignored an ultimatum to stop blocking an army supply route in the hilly, resource-rich state where more than 50,000 people have been displaced.

Official newspapers said that air support was used on December 30 to thwart KIA fighters who had occupied a hill and were attacking logistics units of the Tatmadaw, as Myanmar's military is known.

"The Tatmadaw troops cleared Point-771 hill and its surrounding areas where the KIA troops were attacking the Tatmadaw logistic troops," the New Light of Myanmar, a government mouthpiece, said. "The air cover was used in the attack."

U.N. Secretary-General Ban Ki-moon voiced concern on Wednesday over reports of helicopters and fighter jets being used in the state bordering China. The KIA said the attacks were intended to clear the path for an assault on its headquarters in Laisa.

Ban called on Myanmar's government to "desist from any action that could endanger the lives of civilians" and reiterated demands for humanitarian aid groups to be granted access, U.N. spokesman Martin Nesirky said in a statement.

President Thein Sein's quasi-civilian administration insists it wants a ceasefire and political dialogue. It says troops have acted only in self-defense and on Thursday denied having plans to seize the KIA's stronghold.

DOMINANT MILITARY

The escalation of fighting has raised doubts about the sincerity of the reformist ex-generals running the government and the extent of their power in a country the size of Britain and France plagued by decades of internal conflict.

Some analysts and diplomats say central government is either not fully committed to peace with the KIA or unable to assert control over the military, which still dominates politics and the economy despite formally ceding power in March 2011.

Colonel James Lum Dau, a Thai-based spokesman for the KIA's political wing, said Kachin officials on the ground had reported up to 300 people killed in air strikes.

"We are in a defensive position. Right now more people are suffering not only bombings, but shelling and spraying of chemical weapons with helicopter gunships and jets," he said. "Only god knows what to do. We are praying."

It is difficult for journalists to independently verify accounts from the two sides.

Fighting erupted in Kachin in June 2010, ending a 17-year truce, and has continued even as government negotiators have agreed ceasefires elsewhere with ethnic Shan, Chin, Mon and Karen militias after decades of fighting in border areas.

Mistrust runs deep between the military and the KIA, which was once backed by China, and multiple rounds of talks aimed at reaching a ceasefire have gone nowhere. Analysts say a history of bad blood and a battle for control of resources, including highly lucrative jade, could be stoking the unrest.

Zaw Htay, a senior official in Thein Sein's office, told Reuters no air strikes had taken place but K-8 trainer jets had provided cover fire to protect ground troops from rebel attacks. The military, he said, had no intention of seizing the KIA's headquarters.

"The president has said this and at the same time he has invited KIA leaders to come and talk with him in Naypyitaw, but they still haven't responded," Zaw Htay said.

(Additional reporting by Paul Carsten in Bangkok; Writing by Martin Petty; Editing by Alan Raybould)

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Football: Singapore's team manager Eugene Loo resigns

SINGAPORE: Lions team manager Eugene Loo has resigned from his post after nine years, citing family commitments.

This comes shortly after national coach Raddy Avramovic said he would not renew his contract - which expired on December 31.

Mr Loo joined as team manager in 2004 and turned in his notice on Wednesday.

Under his watch, the Lions have clinched various titles, most recently the fourth ASEAN football title.

The Football Association of Singapore (FAS) says it is looking for a suitable replacement.

Mr Ridzal Saat, Deputy Director of Marketing and Communications at FAS, said the players who have worked with Eugene were saddened when they heard that he was leaving.

He said Eugene will still be around when the players come back together in late January for the Asian qualifiers.

- CNA/de

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Tobii Rex: Control a Windows 8 PC with your eyes

The accessory attaches to the base of your laptop screen or monitor, and tracks the movement of your eyes.

(Credit:
Tobii)

Whatever you may feel about
Windows 8, it's sparked a number of interesting hybrid designs. Now you can count the Tobii Rex, an eye-controlled interface for Windows 8, as another innovation that works with Microsoft's latest operating system.

First seen at last year's
CES, the Rex is an eye-tracking peripheral that works with Tobii's proprietary Gaze interface to navigate around a Windows 8 computer. The stick-like device attaches to the base of your computer screen and connects via a USB port.

Although the Rex enables users to perform tasks such as scrolling, Tobii says it's not meant to replace your keyboard or mouse.

The company seems to be rolling out the Rex gradually; it's only offering 5,000 units before the end of the year. Tobii hasn't announced the price or availability for the device, though a special developer edition is now available at $995.

(Source: Crave Asia via Engadget)

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Sandy Hook survivors welcomed at new school

A man waves to a child on a bus on the first day of classes after the holiday break, in Newtown, Conn.,Wednesday, Jan. 2, 2013. / AP Photo/Jessica Hill

MONROE, Conn. The children who escaped last month's shooting at Sandy Hook Elementary School in Newtown were welcomed Wednesday to a school in a neighboring town that was overhauled specially for them.

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Orientation day for Sandy Hook students

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Heroism of Sandy Hook teachers

The open house at the former Chalk Hill School in Monroe marks the students' first time in a formal classroom setting since the massacre on Dec. 14, when a gunman killed 20 of their fellow classmates and six educators. Classes are starting for the Sandy Hook students on Thursday.

The road leading to the school in a rural, largely residential neighborhood was lined with signs greeting the students, saying "Welcome Sandy Hook Elementary School" and "Welcome. You are in our prayers." Several police cars were parked outside the school.

Teams of workers, many of them volunteers, prepared the former Chalk Hill middle school with fresh paint and new furniture and even raised bathroom floors so the smaller elementary school students can reach the toilets. The students' desks, backpacks and other belongings that were left behind following the shooting were taken to the new school to make them feel at home.

Counselors say it's important for children to get back to a normal routine and for teachers and parents to offer sensitive reassurances.

When classes start on Thursday, schools Superintendent Janet Robinson said teachers will try to make it as normal a school day as possible for the children.

"We want to get back to teaching and learning," she said. "We will obviously take time out from the academics for any conversations that need to take place, and there will be a lot of support there. All in all, we want the kids to reconnect with their friends and classroom teachers, and I think that's going to be the healthiest thing."

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Obama Hails 'Cliff' Deal, Warns of Next Fiscal Fight

Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.

"This is one step in the broader effort to strengthen our economy for everybody," Obama said.

Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."

But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.

"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."

An hour after his remarks, Obama boarded Air Force One to rejoin his family in Hawaii, where they have been since before Christmas.

AP Photo/Charles Dharapak

House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.

A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.

The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.

The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.

But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.

The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.

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Air raid on petrol station in Damascus suburb kills 30: activists

AMMAN (Reuters) - At least 30 civilians were killed on Wednesday when Syrian warplanes bombed a petrol station in a rebellious suburb on the eastern edge of Damascus, two opposition campaigners on the scene said.

"I counted at least 30 bodies. They were either burnt or dismembered," said Abu Saeed, an activist who arrived at the area in the Muleiha suburb of Damascus an hour after the raid occurred at 1:00 PM (1100 GMT).

Another activist, Abu Fouad, said warplanes had bombarded the area as a consignment of fuel arrived and crowds packed the station.

Video footage taken by activists, which could not be independently verified, showed a body of a man a helmet on a motorcycle amid flames that had engulfed the site, apparently hit while in a line of vehicles waiting for petrol. A man was also shown carrying a dismembered body.

Muleiha is one of a series of Sunni Muslim suburbs ringing the capital that have been at the forefront of the 21 month revolt against the rule of President Bashar al-Assad, who belongs to the Shi'ite-derived Alawite minority sect.

Government forces control the center of Damascus and have been pounding the suburbs from the air.

(Reporting by Khaled Yacoub Oweis, Amman newsroom; Editing by Peter Graff)

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Afghan warlord Hekmatyar vows fresh attacks on NATO troops

LONDON: Afghan warlord Gulbuddin Hekmatyar vowed in an interview published on Wednesday to kill as many Western soldiers as possible before NATO combat forces withdraw from the country in 2014.

Hekmatyar, a former prime minister who leads Afghanistan's second largest militant group Hezb-i-Islami, told Britain's Daily Telegraph newspaper that fresh attacks would send a warning to "others waiting to invade Afghanistan".

"Before the withdrawal of invading forces, the Mujahideen would like to witness with their own eyes a scene that will teach the invaders to never think of coming this way again," he said in a video obtained by the Telegraph in response to questions asked through an intermediary.

Hekmatyar, designated a global terrorist by the United States, warned that Afghanistan could collapse into bloody civil unrest after NATO troops withdraw, 13 years after the US-led invasion.

"The fact is that the government has failed," said the former premier, who is shown in the video with a white beard and wearing a black turban.

"We might have a dreadful situation after 2014 which no one could have anticipated."

NATO is aiming to train 350,000 Afghan soldiers and police by the end of 2014 to take over responsibility for security.

But trust between the two sides has been seriously undermined by "insider" attacks by Afghan forces that killed more than 60 foreign troops in 2012, and the transition process has been beset by other problems including desertions.

Hekmatyar indicated that Hezb-i-Islami, notorious for its bloody siege of Kabul in the 1990s, has softened some of its hardline Islamist policies such as banning women from education.

He condemned the Pakistani Taliban's blocking of girls' schooling, which was thrown into the spotlight in October by its attempted murder of 15-year-old education campaigner Malala Yousafzai on her schoolbus.

He insisted that Hezb-i-Islami "consider education is as necessary for girls as it is for boys", though they object to combined male and female classes.

The former premier also blasted Britain's Prince Harry, who has been serving in Afghanistan since September as an Apache helicopter pilot, as a "jackal" who was "drunk" while on duty.

"The British prince comes to Afghanistan to kill innocent Afghans while he is drunk," Hekmatyar told the Telegraph.

Britain's ministry of defence said it was "simply absurd" to suggest that the third-in-line to the throne or any other member of the British armed forces was conducting operations under the influence of alcohol.

"The consumption of alcohol by UK military personnel is not permitted under any circumstances while deployed in Afghanistan," a ministry spokesman said.

- AFP/de

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Paris Apple Store robbed of more than $1 million in goods

Apple's Paris store near the Paris Opera House, in a photo taken during the iPhone 5 launch this past September.

(Credit:
Stephen Shankland/CNET)

Armed robbers broke into the Apple Store in Paris on New Year's Eve and made off with more than a million dollars' worth of merchandise, according to reports.

Masked suspects wielding handguns forced their way into the store through an employee entrance as a janitor was leaving, about three hours after the store's 6 p.m. closing time, England's Telegraph reported. The janitor was "lightly injured," the news outlet said. The Wall Street Journal cited French reports and said a security guard had also been overpowered by the thieves.

The Journal said two suspects forced their way in, and the Telegraph reported that four or five suspects total were involved in the robbery.

The thieves ignored display items and grabbed boxes of goods, loading them onto a truck. The whole operation took about 40 minutes, the Telegraph reported.

The total value of the stolen goods was estimated at about 1 million euros, or $1.32 million. But the exact total is not yet known, as an inventory is still being taken, the Telegraph reported.

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The art of the "fiscal cliff" deal

Nobody said it would be easy.

Senators voted in the pre-dawn hours of New Year's Day to pass the long-sought agreement on the "fiscal cliff" and the House readies for its turn as soon as today, which, if the House passes it, would officially avert the tax hikes and spending cuts that technically took effect at midnight (the deal, when signed by the president, will make the new tax rates and spending retroactive to midnight).

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Biden advises not to predict outcome of "cliff" deal

How did the politicians involved get to their final agreement? Here's the rundown, according to officials familiar with the talks and with the White House's thinking:

Friday through Sunday: Senate Minority Leader Mitch McConnell's opening offer Friday night to Senate Majority Leader Harry Reid was a $750,000 income tax threshold and no jobless benefits and no extension of the earned-income tax credit and other low-income tax breaks, means-testing Medicare, and the Bush era estate tax rates. Offers bounced back and forth Saturday and on Sunday, Reid opted out and handed talks over to Vice President Joe Biden (at McConnell's suggestion). President Obama, Reid and House Minority Leader Nancy Pelosi were in tandem through the talks. Delaying the federal spending cuts, or sequester, fell out of the talks on Sunday but McConnell came down to $550,000 in income tax threshold and some estate tax concessions reflected in the final deal.

Sunday, 8 p.m. ET: Mr. Obama and senior staff met in the Oval Office to discuss their final counter-offer to McConnell. The president set the $400K and $450K income threshold with one-year of jobless benefits and some delay of the sequester. Biden and McConnell talked through the night. Their last call was at 12:45 a.m.

After that, Mr. Obama and Biden met in the Oval until 2 a.m. to go over final details. Mr. Obama sent his legislative liaison Rob Nabors to Capitol Hill at 2 a.m. to begin drafting a bill with Senate Democrats. Biden and McConnell spoke again at 6:45 a.m. The rest of Monday was devoted to resolving the sequester impasse.

Monday, 9 p.m. ET: Biden and McConnell sealed the deal by telephone (Biden spoke to McConnell after clearing final details with Mr. Obama). The president then called Reid and Pelosi for one final OK and the deal was announced/leaked/confirmed.

The officials also pointed out that to get to the final deal, moving Republicans from a position of no tax increases in debt ceiling debate to tax increases through tax reform after Mr. Obama's re-election to nothing more than $1 million in higher rates and now to $400,000 and $450,000 thresholds is a significant policy and political victory (worth $620 billion over 10 years).

When the big deal talks failed before Christmas, Mr. Obama's biggest goal was to get GOP buy-in on higher tax rates for the wealthy. It is regarded as one of the most significant policy victories in two decades, the officials said.

Compromising on the two-month sequester was difficult, the officials added. The White House wanted a full year of waiving the sequester but there was no time to negotiate the difficult policy details (the sequester talks took literally all of Monday).

As for the deal's effect on the deficit, it does not cut the deficit relative to what would have occurred if all the fiscal cliff tax cuts had been erased (meaning all Bush tax cuts expired) and the sequester kicked in full force. But, relative to a baseline that assumes all existing tax policy would have continued, the deal raises $620 billion in revenue. The Alternative Minimum Tax (AMT) fix is not counted by the WH, for example, because its extension was assumed in the existing policy baseline (that doesn't mean it won't cost anything; just that the White House doesn't count the cost).

The jobless benefit extension for one year cost $30 billion and that is not paid for. The Medicare "doc fix" is paid for by savings that will be taken from other provider payouts in Medicare. It costs $31 billion, meaning those provider cuts will pay for protecting doctors from a 27 percent automatic cut in premiums.

And $12 billion in new revenue comes from allowing 401Ks and other retirement instruments into Roth IRAs. This is the revenue that forms half of the offset of the two-month sequester delay. The other $12 billion will come from a 50-50 split of non-defense and defense cuts.

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Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called fiscal cliff with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans."

The bill extends Bush-era tax cuts permanently for individuals making less than $400,000 per year and couples making less than $450,000 but allows the top marginal tax rate on incomes above those levels to rise to 39.6 percent.

Capital gains taxes would rise to 20 percent from 15 percent.

The measure would raise the estate tax from 35 to 40 percent for estates larger than $5 million, prevent the alternative minimum tax from hammering millions of middle-class workers and extend unemployment benefits for one year.

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

Lawmakers also decided at the last minute to use the measure to prevent a $900 pay raise for each member of Congress due to take effect this spring.

The steep "sequester" budget cuts scheduled to go into effect with the New Year -- a $1.2 trillion hit to defense and domestic programs -- would be postponed for two months.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

The deal at hand does little to address the nation's long-term debt woes, however, and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- could set up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Reid said he is "disappointed" they were unable to achieve a broader deal but that the compromise was necessary.

"We tried," he said. "If we did nothing, the threat of a recession is very real."

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-Ky., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with Senate Republicans.

The measure must now move to the Republican-led House.

Five Senate Republicans and three Democrats voted against the plan, but the large margin of passage was seen as boosting the bill's prospects in the House, even though fiscal conservatives were poised to vehemently oppose the deal when it comes to the floor for a vote.

House Speaker John Boehner of Ohio said the House would not vote on any Senate-passed measure "until House members, and the American people, have been able to review" it.

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