Rice withdraws from secretary of state consideration

Updated: 4:39 p.m. ET


U.N. ambassador Susan Rice on Thursday officially withdrew her name from consideration to replace Hillary Clinton as secretary of state, citing in a letter to President Obama the "lengthy, disruptive and costly" nominating process she was sure to face if tapped for the job -- a disruption she argued the nation "cannot afford."

Rice, who was considered a top contender for the position, has been recently embroiled in ongoing controversy surrounding her account of the September 11 Libya attacks, which she discussed in a series of talk show appearances on September 16. In her letter to the president today, Rice said she was "saddened" that the position had become so politicized, but argued Congress has more important battles to fight.

"I am highly honored to be considered by you for appointment as Secretary of State. I'm fully confident that I could serve our country ably and effectively in that role," she wrote. "However, if nominated, I am now convinced that the confirmation process would be lengthy, disruptive and costly - to you and to our most pressing national and international priorities. That trade-off is simply not worth it to our country. It is far more important that we devote precious legislative hours and energy to enacting your core goals, including comprehensive immigration reform, balanced deficit reduction, job creation, and maintaining a robust national defense and effective U.S. global leadership. Therefore, I respectfully request that you no longer consider my candidacy at this time."

In a statement, President Obama acknowledged that he had "accepted" Rice's decision to remove her name from consideration, and expressed "every confidence" in her ability to "serve our country now and in the years to come."


But the president, who fiercely defended Rice against the recent criticism, expressed deep regret over the attacks, which he called "unfair and misleading."


"Her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first," Mr. Obama said in the statement. "The American people can be proud to have a public servant of her caliber and character representing our country."




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Rice: Libya attacks spontaneous



On September 16, five days after the attacks in Benghazi that caused the death U.S. Ambassador to Libya Christopher Stevens and three other Americans, Rice appeared on a handful of Sunday morning political talk shows to discuss the incident. Rice's comments on those shows were guided by CIA talking points that, according to a U.S. intelligence official, "were written, upon request, so members of Congress and senior officials could say something preliminary and unclassified about the attacks," and reflected the possibility that the attacks were a result of spontaneous protests spurred by an anti-Muslim video.


As details trickled out contradicting that possibility, Republicans pounced on the discrepancies between Rice's comments and others, and the ambassador ultimately clarified that there had been "no protest or demonstration in Benghazi" and that "the intelligence assessment [had] evolved" since her Sept. 16 comments.

A spokesperson for the Director of National Intelligence told CBS News that "the intelligence community assessed from the very beginning that what happened in Benghazi was a terrorist attack," and that Rice would have been privy to that characterization -- which was shared at a classified level -- since she's a member of the president's cabinet. But CBS also learned that the Office of the Director of National Intelligence (DNI) cut specific references to "al Qaeda" and "terrorism" from the unclassified talking points given to Ambassador Susan Rice ahead of her television appearances.




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Susan Rice fails to satisfy GOP senators' questions



A handful of Republican lawmakers -- chiefly Sens. John McCain, R-Ariz., Lindsey Graham, R-S.C., and Kelly Ayotte, R-N.H. -- seized on the controversy, targeting Rice's credibility as a potential secretary of state in a series of recent press conferences and threatening to block her nomination. Sen. Susan Collins, R-Maine, also questioned Rice's leadership, and offered up Sen. John Kerry, D-Mass., as her preferable candidate for the job. 

Following Rice's announcement on Thursday, Graham released a statement saying he "respected" her decision, and that "President Obama has many talented people to choose from to serve as our next Secretary of State." He said remained "determined" to find out "what happened - before, during, and after the attack" in Libya. 

A brief statement from McCain spokesperson Brian Rogers reflected a similar sentiment: "Senator McCain thanks Ambassador Rice for her service to the country and wishes her well. He will continue to seek all the facts surrounding the attack on our consulate in Benghazi that killed four brave Americans," he said.

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Rice Withdraws From Sec. of State Consideration


ap susan rice tk 121128 wblog Susan Rice Withdraws From Secretary Of State Consideration; Kerry Emerges As Top Contender

Image Credit: Evan Vucci/AP Photo


UN Ambassador Susan Rice has withdrawn her name from consideration for Secretary of State, saying the criticism surrounding her comments on Benghazi had become an “irresponsible distraction.”


“I am fully confident that I could serve our country ably and effectively in that role,” Rice wrote in a letter to President Obama today. “However, if nominated, I am now convinced that the confirmation process would be lengthy, disruptive and costly – to you and to our most pressing national and international priorities.”


Read Susan Rice’s letter to President Obama


“That trade-off is simply not worth it to our country,” she added.


Rice has been criticized by Republicans for her response to questions on the Sunday talk shows shortly after the terrorist attack on the U.S. consulate in Benghazi killed four Americans.


“The position of Secretary of State should never be politicized,” Rice wrote. “As someone who grew up in an era of comparative bipartisanship and as a sitting U.S. national security official who has served in two U.S. Administrations, I am saddened that we have reached this point, even before you have decided whom to nominate. We cannot afford such an irresponsible distraction from the most pressing issues facing the American people.”


Sources tell ABC News that even before Rice withdrew her name from consideration to be Secretary of State earlier today, Senator John Kerry, D-Mass., had emerged as the leading contender, with the president convinced he would be the better Secretary of State.


The president is all but certain to nominate Kerry, sources say, though no official decision has been made.


The position of Secretary of Defense is not as far along in the process, but sources say former Sen. Chuck Hagel, R-Neb., seems to have an edge right now over other possible candidates such as former undersecretary of defense for policy Michelle Flournoy and deputy Secretary of Defense Ashton Carter.


The CIA director slot, sources say, will go to either acting director Michael Morrell or White House counterterrorism adviser John Brennan.


President Obama, who publicly defended Rice on several occasions, has accepted her decision to remove her name from the running.


“I have every confidence that Susan has limitless capability to serve our country now and in the years to come, and know that I will continue to rely on her as an advisor and friend,” Obama said in a written statement. 


“While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks, her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first,” he said. “The American people can be proud to have a public servant of her caliber and character representing our country.”


Two Republican members of Congress who had adamantly opposed Rice’s potential nomination both reacted quickly.


Sen. Lindsey Graham, R-SC., tweeted, “I respect Ambassador Rice’s decision.” And a spokesperson for Sen. John McCain, R-Ariz., wrote, “Senator McCain thanks Ambassador Rice for her service to the country and wishes her well. He will continue to seek all the facts surrounding the attack on our consulate in Benghazi that killed four brave Americans.”


–Jake Tapper and Mary Bruce

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Russia says Syrian rebels might win


MOSCOW/BEIRUT (Reuters) - Syrian rebels are gaining ground and might win, Russia's Middle East envoy said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad as the 20-month-old civil war closes in on Damascus.


Moscow was "finally waking up to reality", the United States said and it called on Russia to withdraw all support for Assad, who NATO and the rebels' new political leader forecast was heading for collapse.


"One must look the facts in the face," Russia's state-run RIA quoted Mikhail Bogdanov as saying. "Unfortunately, the victory of the Syrian opposition cannot be ruled out."


Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, said the Syrian government was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.


In Washington, State Department spokeswoman Victoria Nuland said: "We want to commend the Russian government for finally waking up to the reality and acknowledging that the regime's days are numbered.


"The question now is, will the Russian government join those of us in the international community who are working with the opposition to try to have a smooth democratic transition?"


Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days.


The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels, who now hold an almost continuous arc of territory from the east to the southwest of Damascus.


The head of NATO said he thought Assad's government was nearing collapse and the new leader of Syria's opposition told Reuters the people of Syria no longer needed international forces to protect them.


"The horrific conditions which the Syrian people endured prompted them to call on the international community for military intervention at various times," said Mouaz al-Khatib, a preacher who heads Syria's National Coalition.


"Now the Syrian people have nothing to lose. They handled their problems by themselves. They no longer need international forces to protect them," he added in the interview on Wednesday night, accusing the international community of slumbering while Syrians were killed.


He did not specify whether by intervention he meant a no-fly zone that rebels have been demanding for month, a ground invasion - which the opposition has warned against - or arms.


He said the opposition would consider any proposal from Assad to surrender power and leave the country, but would not give any assurances until it saw a firm proposal.


In the latest blow to the government, a car bomb killed at least 16 men, women and children in Qatana, a town about 25 km (15 miles) southwest of Damascus where many soldiers live, activists and state media said.


The explosion occurred in a residential area for soldiers in Qatana, which is near several army bases, said Rami Abdelrahman, head of the pro-opposition Syrian Observatory for Human Rights.


He put the death toll as 17, including seven children and two women. State news agency SANA said 16 people had died.


State television showed soldiers walking by a partly collapsed building, with rubble and twisted metal on the road.


The pro-government Al-Ikhbariya TV said a second car bomb in the Damascus suburb of al-Jadideh killed eight, most of them women and children.


Apart from gaining territory in the outskirts of Damascus in recent weeks, rebels have also made hit-and-run attacks or set off bombs within the capital, often targeting state security buildings or areas seen as loyal to Assad, such as Jaramana, where twin bombs killed 34 people in November.


The Pakistani Foreign Office said security concerns had prompted it to withdraw the ambassador and all Pakistani staff from the embassy in the central suburb of East Mezzeh, a couple miles from the Interior Ministry.


BACK TO THE WALL


With his back to the wall, Assad was reported to be turning ever deadlier weapons on his adversaries.


"I think the regime in Damascus is approaching collapse," NATO Secretary-General Anders Fogh Rasmussen said on Thursday.


Human Rights Watch said some populated areas had been hit by incendiary bombs, containing flammable materials such as napalm, thermite or white phosphorous, which can set fire to buildings or cause severe burns and respiratory damage.


The British-based Syrian Observatory said war planes were bombing rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.


At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.


The United States, European powers and Arab states bestowed their official blessing on Syria's newly-formed opposition coalition on Wednesday, despite increasing signs of Western unease at the rise of militant Islamists in the rebel ranks.


Western nations at "Friends of Syria" talks in Marrakech, Morocco rallied around a new opposition National Coalition formed last month under moderate Islamist cleric al-Khatib.


Russia, which along with China has blocked any U.N. Security Council measures against Assad, criticized Washington's decision to grant the coalition formal recognition, saying it appeared to have abandoned any effort to reach a political solution.


Bogdanov's remarks were the clearest sign yet that Russia is preparing for the possible defeat of Assad's government.


"We are dealing with issues of preparations for an evacuation. We have mobilization plans and are clarifying where our citizens are located," Bogdanov said.


The fall of Damascus to the rebels was not a prospect Moscow relished: "The fighting will become even more intense and (Syria) will lose tens of thousands and, perhaps, hundreds of thousands of civilians," Bogdanov told Russia Today television.


"If such a price for the removal of the president seems acceptable to you, what can we do? We, of course, consider it absolutely unacceptable."


Nuland said Russia should now back away from Assad: "They can withdraw any residual support for the Assad regime, whether it is material support (or) financial support," she said.


"They can also help us to identify people who might be willing inside of Syria to work on a transitional structure."


A British Foreign Office spokesperson said the Russian position remained largely unchanged but the situation on the ground gave Moscow an interest in finding an agreed solution, even if the chances of such a solution remained slim.


"If Russia's position on Syria had been a brick wall, it is now a brick wall with a crack in it," the spokesperson said.


(Additional reporting by Dominic Evans in Beirut, Samia Nakhoul and Khaled Yacoub Oweis in Marrakech, Andrew Quinn in Washington and Mohammed Abbas in London; Editing by Philippa Fletcher and Alastair Macdonald)



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Tehran hosts UN nuclear team talks with Iran on Jan 16






TEHRAN: Iran and the UN atomic watchdog, following a day of discussions on the Islamic republic's controversial nuclear programme, agreed on Thursday to resume negotiations in Tehran on January 16 , a senior Iranian official said.

"We agreed to have the next round of talks on January 16 in Tehran," said Ali Asghar Soltanieh, Iran's representative to the International Atomic Energy Agency was quoted by media as saying.

The one day of talks held on Thursday was "constructive, positive, and good progress has been made," he added.

No other information came out of the talks, which ran from the morning late into the evening.

The agency wants to inspect Parchin, a restricted military complex near Tehran where the IAEA suspects experiments with explosives capable of triggering a nuclear weapon could have been carried out.

But the media did not say whether that request was granted.

In Vienna, the IAEA had no comment, but chief inspector Herman Nackaerts, who was leading the seven-strong team, was expected to make a statement on his return there on Friday morning.

The IAEA says the talks aim to reach agreement on a "structured approach" for Tehran to address allegations of weaponisation and for the watchdog to gain broader access to Iran's nuclear sites and people working in the programme.

"We also hope that Iran will allow us to go to the site of Parchin, and if Iran would grant us access we would welcome that chance and we are ready to go," Nackaerts told reporters in Vienna on Wednesday before leaving for Iran.

The IAEA, which visited Parchin twice in 2005, accuses Tehran of carrying out clean-up operations at the base to undermine its efforts to probe possible past nuclear weapons research work. Iran denies that.

Thursday's talks were the latest in a string of fruitless meetings this year between Iran and the IAEA, with the latest in August in the Austrian capital.

One diplomat in Vienna said the team in Tehran is larger than in past visits in February and in May, and now included two "technical experts" who could conduct verification work at Parchin -- if invited to do so.

Iran denies seeking or ever having sought an atomic bomb and has refused the IAEA access to Parchin, saying that as a non-nuclear site the agency has no right to conduct inspections there.

Foreign ministry spokesman Ramin Mehmanparast said on Tuesday the visit would focus on discussions regarding "Iran's nuclear rights as well as its peaceful nuclear activities."

But "certain issues that have possibly become a source of concern for (IAEA) officials can also be discussed," he said, without being more specific.

Iran, under international sanctions, rejects as baseless suspicions by Western governments and echoed by the IAEA that it intends to develop a nuclear weapons capability under the guise of its energy programme.

It stresses that IAEA demands to examine Parchin exceed Iran's obligations under the Nuclear Non-Proliferation Treaty (NPT), to which it is a signatory.

The inspectors' visit also came against the backdrop of renewed efforts by world powers engaging Iran over its nuclear programme to discuss possible dates and venues for a new meeting to resolve the dispute.

The P5 + 1 -- the US, Russia, China, France and Britain plus Germany -- are hoping to agree with Iran "rapidly" on a new meeting, a spokesman for EU foreign policy chief Catherine Ashton said in Brussels.

-AFP/ac



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Top mobile predictions for 2013



It appears that 2013 will be the year that mobile shopping becomes pervasive. According to the just-released "Q4 2012 Developer Survey Report,"  from research firm IDC and Appcelerator, a mobile platform developer, it's likely that most retail companies will have enabled mobile commerce in 2013. 


The survey, which encompasses the views of nearly 3,000 Appcelerator customers, predicts that 86 percent of shoppers will access a retailer's site on their mobile device while shopping in a retail store, and 71 percent of those surveyed predict the mobile wallet will "permeate" the consumer experience in 2013. Nearly 58 percent of those surveyed predicted that it is "likely to very likely" that every smartphone user will also own a
tablet in 2013. The lack of Near-Field Communication (NFC)-enabled devices is not expected to adversely affect the rise of mobile commerce.


Below are other highlights from the the report:


Strong interest in iOS and
Android platforms:
Developer interest in the most popular platforms is mostly unchanged since Q3 2012.


Amazon
Kindle struggles:
Less than 22 percent of mobile developers are "very interested" in building mobile apps for the Amazon device.

Google Nexus starts strong: More than 53 percent of developers report being very interested in building apps for the device. Google taking a more direct role in Android development could help overcome some of the frustration developers have with the effects of platform fragmentation.

Microsoft Surface insufficient: Those surveyed were not impressed by the Surface hardware, and 35 percent believe Microsoft needs to do more to be successful with its Windows 8 hardware offerings.

Developers dismissive of Facebook's revamped mobile strategy: More that 62 percent of developers surveyed believe that it is "likely to very likely" that a mobile-first social startup could disrupt the market for social applications on mobile devices and take market share from Facebook.

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Suspect in Oregon mall shooting ID'd

Updated 1:40 PM ET

PORTLAND, Ore. The gunman who killed two people and himself in a shooting rampage at an Oregon mall was 22 years old and used a stolen rifle from someone he knew, authorities said Wednesday.

Jacob Tyler Roberts had armed himself with an AR-15 semiautomatic rifle and had several fully loaded magazines when he arrived at a Portland mall on Tuesday, said Clackamas County Sheriff Craig Roberts.

The sheriff said the rifle jammed during the 22-year-old's attack, but he managed to get it working again. He later shot himself. The sheriff said authorities don't yet have a motive.




Play Video


Cell phone video: Ore. mall evacuated after shooting



A law enforcement official has told The Associated Press the shooter did not have a criminal record. The official spoke on condition of anonymity because he was not authorized to discuss details of an ongoing criminal investigation.

Two people — a 54-year-old woman and a 45-year-old man — were killed, and another, Kristina Shevchenko, whose age could not be confirmed, was wounded and in serious condition on Wednesday.

The shooter, who wore a mask, fired randomly, investigators said. People at the mall were heroic in helping get shoppers out of the building, including off-duty emergency room nurses who rendered aid, Roberts said.

CBS News senior correspondent John Miller, a former deputy director of the FBI, said it was "pretty miraculous" that more people were not shot during the incident.

"He fired 'countless rounds' ... he reloaded," Miller said, before adding, "Given the amount of rounds he fired, he hit a fairly small number of people, so this could have been much worse."

In response to previous mass shootings elsewhere, the first arriving officers were trained to form teams and go inside instead of waiting for SWAT. Employees at the mall also received training to handle such a situation.

"This could have been much, much worse," Roberts said.

The first 911 call came at 3:29 p.m. Tuesday. The first officers arrived a minute later. By 3:51 p.m., all the victims and the gunman and rifle had been found. Four SWAT teams spent hours clearing the 1.4 million square-foot mall, leaving shoppers and workers to hide in fear.

The mall Santa, Brance Wilson, was waiting for the next child's Christmas wish when shots rang out, causing the mall to erupt into chaos.

About to invite a child to hop onto his lap, Wilson instead dove for the floor and kept his head down as he heard shots being fired upstairs in the mall.

"I heard two shots and got out of the chair. I thought a red suit was a pretty good target," said Wilson, 68. Families waiting for Santa scattered. More shots followed, and Wilson crept away for better cover.

Witnesses said the gunman fired several times near the mall food court until the rifle jammed and he dropped a magazine onto the floor, then ran into the Macy's store.

Witnesses heard the gunman saying, "I am the shooter," as he fired rounds from a semi-automatic rifle inside the Clackamas Town Center, a popular suburban mall several miles from downtown Portland.

Some were close enough to the shooter to feel the percussion of his gun.



Photos of shooting victims, Cindy Yuille, left, and Steven Forsyth, center, are posted on a police mall diagram along with a photo of gunman Jacob Taylor Roberts, at a press conference Wednesday Dec. 12, 2012 about the multiple shooting on Tuesday at Clackamas Town Center Mall in Clackamas, Ore.


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AP Photo/Greg Wahl-Stephens

Police rapid-response teams came into the mall with guns drawn, telling everyone to leave. Shoppers and mall employees who were hiding stayed in touch with loved ones with cellphones and texting.

Kayla Sprint, 18, was interviewing for a job at a clothing store when she heard shots.

"We heard people running back here screaming, yelling `911,"' she told The Associated Press.

Sprint barricaded herself in the store's back room until the coast was clear.

Jason DeCosta, a manager of a window-tinting company that has a display on the mall's ground floor, said when he arrived to relieve his co-worker, he heard shots ring out upstairs.

DeCosta ran up an escalator, past people who had dropped for cover and glass littering the floor.

"I figure if he's shooting a gun, he's gonna run out of bullets," DeCosta said, "and I'm gonna take him."

DeCosta said when he got to the food court, "I saw a gentleman face down, obviously shot in the head."

"A lot of blood," DeCosta said. "You could tell there was nothing you could do for him."

He said he also saw a woman on the floor who had been shot in the chest.


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Why Mass Shooters Often Wear Masks













The Oregon mall shooter was dressed all in black and his face was covered by a white hockey mask.


The mask, the black clothes, the age of the gunman and a weapon are becoming a familiar and deadly pattern.


The gunman, 22-year-old Jacob Tyler Roberts of Portland, is one of a string of killers before him, including Aurora shooter James Holmes, who chose to wear black and cover their faces with masks.


Hero Saves Customer At Mall Shooting


For these cold-hearted killers, the costume bolsters their confidence and power as they carry out their depraved fantasies, said Dr. Mary Ellen O'Toole, a retired FBI profiler.


"They're doing it because it's a role. It's almost like a big game and like they're the puppet master. They've got the control, the power, the weapons," she told ABCNews.com.


"The biggest thing for a mass shooter is the control and empowerment for the shooting," said former FBI agent and ABC News consultant Brad Garrett. "It isn't uncommon for a shooter to wear a costume, or sometimes simply to dress in black.... He went there being someone other than who he is in reality because it gives him power."


From the costume to his age and ethnicity, Roberts fit the mold of who FBI profilers expected the shooter to be.








Oregon Mall Shooting: 'Killing of Total Strangers' Watch Video









Oregon Mall Shooting: Woman on Macy's Employee's Heroism Watch Video









Oregon Mall Shooting: At Least 3 People Dead Watch Video





"Its clear the majority [of shooters] are white males, but we can't say anything statistical about that," O'Toole said, pointing to the Virginia Tech shooting, which was perpetrated by a Korean, and the Red Lake shooting, where the gunman was Native American.


Nevertheless, she acknowledged the preponderance of whites among the list of mass killers.


"I think it's a question that needs to be put out there," O'Toole said


There is one thing that can be predicted, however -- age. Most mass shooters are between the ages of 15 and 25, O'Toole said.


"This is where we see young men acting out in a different way," she said, citing increased levels of testosterone. "It has to do with their biological make-up and development."


Garrett said that the age period between 15 to 25 years can also be a time when young men might feel the world is passing them by, stifling what they could have been. The desire to be remembered, he said, can be a factor that can cause unstable young men to kill.


They may have thoughts of, "I can be more than I am if you didn't stop me," Garrett said, adding that the "you" didn't necessarily refer to a specific individual.


Shooting Was Survivor's Second Brush With Death


Psychiatric issues are another commonality with mass killers, said Garrett.


"The idea that you can walk into a mall or any other location and shoot people is very intoxicating for these people. They typically do not feel empowered during the day," he said. "Depression, manic depression play into feelings of inadequacy."


As Roberts walked through the Clackamas Town Center, intent on killing as many people as possible, witnesses said he was looking straight ahead, shooting along the way.


PHOTOS: Oregon Mall Shooting


Two people were killed and one wounded before Roberts took his own life.


While investigators try to piece together what made Roberts snap, O'Toole warned the cycle of gun violence will continue.


"Somewhere, there is a male in this age range thinking of outdoing the shooter in Aurora and outdoing the shooter in Oregon and they are watching this and saying, 'I am going to do it.'"


ABC News' Colleen Curry and Jared Weiner contributed to this report



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North Korea rocket launch raises nuclear stakes


SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.


"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".


The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD), a joint U.S.-Canadian military organization, said that the missile had "deployed an object that appeared to achieve orbit".


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.


North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-il.


North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.


"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.


The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.


"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.


U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.


Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.


A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".


"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.


"STUMBLING BLOCK"


China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.


On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.


"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."


A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.


Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.


"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.


Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.


Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.


It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.


It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.


"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.


"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."


The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".


(This story has been refiled to clarify reference to NORAD in paragraph five)


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)



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Fed sets inflation, jobless targets for hiking rates






WASHINGTON: The US Federal Reserve laid out target levels on unemployment and inflation for raising interest rates for the first time Wednesday, surprising analysts who expected such a move would wait until next year.

In an effort to better signal its policy path, after its benchmark rate has been locked at 0-0.25 percent for four years, the Fed said it would not lift rates as long as the inflation outlook was below 2.5 percent and the jobless rate, now at 7.7 percent, stays above 6.5 percent.

Saying the economy continues to grow only at a "moderate" rate, the Federal Open Market Committee also launched a new, open-ended $45 billion a month bond-buying program to replace the bond-swap Operation Twist program that expires at year-end.

That will take its total "quantitative easing" asset purchases, of both Treasury bonds and mortgage-backed securities, aimed at pushing down long-term rates to encourage investment, to $85 billion a month.

After a two-day policy meeting, Fed Chairman Ben Bernanke stressed that the economy, while growing at a moderate pace, was still hindered by high unemployment, which he called "an enormous waste of human and economic potential."

He also warned that Congress and the White House needed to urgently find a solution to the fiscal cliff crisis, which could send the economy back into recession next year.

"Even though we have not even reached the point of the fiscal cliff potentially kicking in, it's already affecting business investment and hiring decisions by creating uncertainty or creating pessimism," Bernanke said at a post-meeting news conference.

Even with the new target thresholds, the FOMC essentially held close to its course of the past year, stressing that its current "highly accommodative" monetary policy will stay in place even after the economy starts turning up.

Its benchmark interest rate would hold at the current level "at least as long as the unemployment rate remains above 6.5 percent" and inflation over the horizon of one to two years is projected at lower than 2.5 percent.

Such a stipulation was far more explicit than previous Fed guidance, which forecast that its easy-money policy would be in place "at least through mid-2015."

With prospects low for a rebound in inflation, it also further enshrined combatting unemployment as the primary focus of Fed policy for the next two or three years.

Jim O'Sullivan of High Frequency Economics said the change in the forecasting language suggested that FOMC members see the economy possibly improving over the next couple years more firmly than they had previously forecast.

"The signal is similar but is more clearly conditional," O'Sullivan said.

"As we have been writing, we see risks tilted toward a more rapid-than-expected decline in unemployment continuing."

But Federal Reserve Chairman Ben Bernanke stressed that the FOMC was not signaling greater optimism.

Tying future monetary policy moves to specific conditions will make policy more transparent and predictable, he told journalists.

"The change in the form of the committee's forward guidance does not in itself imply any change in the committee's expectations of the likely future path of the federal funds rate since the October meeting," he said.

Indeed, the FOMC cut very slightly its growth forecast for next year to 2.3-3.0 percent, from around 1.8 percent this year.

And the survey of FOMC participants showed only five of 19 saw monetary policy tightening by 2014, the same as the October meeting.

Markets liked the news for only a short time, shooting up before falling back to around break-even level at the close.

The dollar suffered, though, falling to $1.3065 against the euro.

-AFP/ac



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Exclusive: ITU 'failed,' says former policy chief



The Opening Ceremony and Plenary at the WCIT-12 conference.



(Credit:

ITU/Flickr)


The International Telecommunications Union's (ITU) former telecommunications policy chief told CNET that the union is, "the most failed body in the history of international telecommunications," describing secret talks, Russia's close involvement with the group, and its Global Cybersecurity Agenda.


Anthony Rutkowski held the position of ITU's Chief of Telecommunication Regulations and Relations between Members in the ITU's General Secretariat from November 1987 to January 1992. In that capacity, he also served as Counselor to the Secretary-General, worked for two ITU Secretary-Generals -- and much more in various capacities for the telecommunications arm of the United Nations.


Speaking to CNET exclusively from Kuala Lumpur, Malaysia, Rutkowski criticized the ITU and warned of the backlash from the international community.


Right now, the U.N.'s ITU continues to facilitate its World Conference on International Telecommunications (WCIT-12) in Dubai, where member state countries are arguing over proposed revisions to the International Telecommunication Regulations (ITR) -- which would expand the ITU's jurisdiction over the Internet, such as creating pay-per tolls, surveillance and monitoring regulations, and would give nation states increased control over the Internet.


The ITU has faced increased global opposition in its maneuvering toward treaty negotiation and creations of Internet standards, with democratic and free speech organizations lining up along with Internet giants, such as Google, to the formation of country blocs that include the U.S., the European Parliament, Canada, Mexico and more.


But not everyone is against the ITU's endless wrangling to change the treaties. Critics have been quick to point out that some member states are keen to implement changes that could create state-run and monitored Internets, and changes that could draw back the revenue their telecoms have been bleeding out over the past 15 years of the Internet's growth into telecommunications communication space.


Rutkowski told us that some are pushing harder for change. "It appears that Russia, the Arab and African Blocs, plus a bunch of other allies have definitely indicated they do," he said. "It's unclear how successful they will be in using ITU instruments and bodies to do this. This concern also applies to the mobile world that walked away from the ITU fifteen years ago."


He warned, however: "There is a substantial likelihood that the ITU will just be further shunned by everyone."


Rutkowski holds ITU's Secretary-General, Dr. Hamadoun Touré, accountable for a decade of "spin" and close work with the Russian Delegation -- ostensibly to further advance what Rutkowski sees as an "agenda."


"Touré's technical education was in Russian schools. The official Russian Ministry website on Putin's visit to Geneva hosted by Hamadoun contains surprisingly candid remarks regarding Touré being a "brother" of Russia, and that Putin anticipated his help in pursuing Russian goals in controlling the Internet. [Touré] is a master at spinning up half truths and all kinds of propaganda to drive the agenda he's been pursuing for the past ten years in the ITU. They get an A-plus for adaptability," he said. "Classics are things like the ITRs and the ITU being responsible for the Internet's existence, or that the ITU has developed hundreds of security standards used today, or that the [WCIT-12 conference] is all about connecting the world to broadband facilities, or Dr. Vint Cerf and Google are the ones primarily leading a campaign against the ITU."


"The reality is that other than ITU radio spectrum management work, the rest is a worthless institution that does nothing more than flush money into the Geneva economy," Rutkowski added.


In June 2011, then-Russian Prime Minister Vladimir Putin met with Dr. Touré to remind the Secretary-General that Russia co-founded the ITU. The 2011 meeting adds to current controversy backlighting ITU's relationship with Russia. Namely, at that meeting, Putin was quoted saying Russia intended to actively participate in, "establishing international control over the Internet using the monitoring and supervisory capabilities of the International Telecommunication Union (ITU)."


When asked for comment on Putin's 2011 statement last week, ITU's senior communications officer Toby Johnson did not acknowledge CNET's request.


Rutkowski went on: "During the late 1990s, Russia began to pursue secret talks in the U.N. on cyberwarfare. Russia has always favored intergovernmental bodies for this kind of dialogue. The activity was 'sealed' by the U.N. under a special arrangement. I know about it first-hand because at one point in 2007, I was asked to be part of the meeting of one of the subgroups."


He continued: "Soon after taking over as Secretary General, Dr. Touré eliminated the exist policy planning staff and pulled his own confidants around him. His initial major aegis for moving forward was his Global Cybersecurity Agenda. In all these activities, Russia was a constant ally. Sometimes [Touré] would lead; sometimes Russia. They operated as a tag-team in the forums."


"Russia also got some of its key operatives into different WCIT preparatory and ITU-T security committee leadership positions. You can map many of them to the Russian delegations to both WTSA and WCIT. Russia is typically good at long range planning in these intergovernmental bodies," he said.


According to Rutkowski, recent maneuvering has resulted in stalemates, and highlighted concerns relating to Internet surveillance and monitoring: "A big issue both at the WTSA (World Telecommunication Standardization Assembly) and WCIT (World Conference on International Telecommunications) was the expansion of ITU jurisdiction into Industrial Control Systems, and Cloud Computing facilities. The latter ended in a stalemate at WTSA because Russia continued to insist that cloud security was under the control of ITU-T Study Group 17 - Security [Standards Development], which is led by Russia."


He added: "That group as well as SG11 have been Russian leadership favorites to control content and introduce all kinds of surveillance platforms under different guises."


Rutkowski detailed his work alongside Touré, saying: "Fortunately I only had to deal with him as a member of his so-called High Level Experts Group on Cybersecurity. After he tried to connive a result that the participants would not agree with, he disbanded the group in 2008."


But according to Rutkowski, Touré wanted to expand the ITU's role in the cybercrime space.


"Among other things, he had visions of the ITU becoming the leading cybercrime organization and developing a new treaty to replace the existing Convention on Cybercrime because for some reason Russia didn't like it. Some months ago he got caught in the middle in doing a deal with Russian cybersecurity firm Kaspersky Labs following a meeting he hosted for Putin. The idea was to have Hamadoun help Kaspersky and vice-versa in using the ITU to provide cybersecurity services."


On May 31, 2012, Touré had issued a press release announcing that via ITU's special relationship with Kaspersky, the ITU was assisting the Iranian government with recently discovered "Flame" malware. Although the details are not entirely known, according to a subsequent New York Times article it appeared as if Flame may have been deployed by some governments to assess and watch for nuclear security threats. The Federation of American Scientists described the ITU and its role in the matters as a "Multilateral Trust Challenge Example" in its Spring 2012 Public Interest Report on Multilateral Cyber Security Solutions.


Rutkowski said that after public attention focused on the events surrounding Kaspersky and Iran, the special relationship between ITU and Kaspersky "became embarrassing."


Visions of Toure as a 'cybersecurity czar,' commanding a global cybersecurity cartel to shore up a flagging telecommunications arm of the U.N. aside, the ITU's member states are currently in Dubai arguing over proposals that -- if the leaked documents thus far are any indication -- appear uninformed, and nigh on Draconian.


If the nations agree to sign the provisions resulting from proposals made at WCIT-12, the end result may not be as clear cut as convention would suggest.


Rutkowski said it was, "hard to tell," adding: "That's because many, if not most, also file declarations that say something along the lines that although they are signing, that their national interests will always be first. That is, they may diverge if their national interests dictate otherwise."


The ITU reminds its critics at every public-relations juncture that member states do not have to agree to the changes, and may not even implement them (a number of nations -- such as the United States -- have historically ignored the ITU's treaties).


Rutkowski wryly remarked, "Most of the material being stuck into the current new draft is absolutely absurd. Even the 1988 ITRs are a joke. Everyone forgot about them because no one could possibly abide by them as they mandate conformance with ITU-T standards, which are the worst in the world. It has left a 40 year trail of 'road kill' on the information superhighway."


At the start of our interview, Rutkowski stated that, "the ITU has historically not been very open."


As WCIT-12 wraps up this week, what remains to be seen is how member states would use the new treaties to implement new rules within their jurisdictions, such as the recently agreed deep-packet inspection provisions. Rutkowski told CNET that it's not entirely clear the changes actually could be implemented. "Again, the provisions they are proposing are a joke. Most if not all the major nations will simply ignore what is in the draft provisions." Yet Rutkowski pointed out that even still, "Russia and few others may try to exploit the political value."


Some accusations against ITU are damning. When asking Rutkowski the extreme question on some people's minds: if he thought some people's worst fears were intent of the powers at work, to use this as an opportunity to inhibit rights and empower states like Syria or Iran?


He answered, "the Russian proposal pretty much speaks for itself here. They believe that the State's role is to protect the minds of its citizens from being contaminated by information the State deems inappropriate."


CNET reached out to Kaspersky, but did not receive a response at the time of publication. While an ITU spokesperson responded to emails, they did not offer a comment for publication. If we hear back, we will update the piece.


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