Australian DJs Behind Prank Call Under Fire

An outpouring of anger is being directed today at the two Australian radio hosts after the death of a nurse who was caught in the DJs' prank call to hospital where Kate Middleton was treated earlier this week.

Lord Glenarthur, the chairman of King Edward VII's Hospital - the U.K. hospital where the Duchess of Cambridge was receiving treatment, condemned the prank in a letter to the Max Moore-Wilton, chairman of Southern Cross Austereo, the Australian radio station's parent company.

Glenarthur said the prank humiliated "two dedicated and caring nurses," and the consequences were "tragic beyond words," The Associated Press reported.

DJs Mel Greig and Michael Christian, radio shock jocks at Sydney's 2Day FM have been taken off the air, but the company they work for did not fire them or condemn them.

"I think that it's a bit early to be drawing conclusions from what is really a deeply tragic matter," Rhys Holleran, CEO of Southern Cross Austereo told a news conference in Sydney. "I mean, our main concern is for the family. I don't think anyone could have reasonably foreseen that this was going to be a result."

Nurse Jacintha Saldanha was found dead Friday morning after police were called to an address near the hospital to "reports of a woman found unconscious," according to a statement from Scotland Yard.

Circumstances of her death are still being investigated, but are not suspicious at this stage, authorities said Friday.

Following news of Saldanha's death, commentary on social media included posts expressing shock, sadness and anger.

Nurse Duped by 'Queen's' Prank Call Found Dead Watch Video

Jacintha Saldanha, Nurse at Kate Middleton's Hospital, Found Dead Watch Video

A sampling of some of the twitter posts directed at the DJs included: "you scumbag, hope you get what's coming to you" and "I hope you're happy now."

The hospital said that Saldanha worked at the hospital for more than four years. They called her a "first-class nurse" and "a well-respected and popular member of the staff."

The hospital extended their "deepest sympathies" to family and friends, saying that "everyone is shocked" at this "tragic event."

"I am devastated with the tragic loss of my beloved wife Jacintha in tragic circumstances, she will be laid to rest in Shirva, India," Saldanha's husband posted on Facebook.

The duchess spent three days at the hospital undergoing treatment for hyperemesis gravidarum, severe or debilitating nausea and vomiting. She was released from the hospital on Thursday morning.

"The Duke and Duchess of Cambridge are deeply saddened to learn of the death of Jacintha Saldanha," a spokesman from St. James Palace said in a statement.

On Friday, Greig and Christian had been gloating about their successful call to the hospital, in which they pretended to be Queen Elizabeth and Prince Charles and were able to obtain personal information about the Duchess's serious condition.

"You know what they were the worst accents ever and when we made that phone call we were sure a hundred people at least before us would have tried the same thing," said Grieg on air. She added with a laugh, "we were expecting to be hung up on we didn't even know what to say [when] we got through."

"We got through and now the entire world is talking, of course," said her co-host Christian.

When the royal impersonators called the hospital, Saldanha put through to a second nurse who told the royal impersonators that Kate was "quite stable" and hadn't "had any retching."

The hospital apologized for the mistake.

"The call was transferred through to a ward, and a short conversation was held with one of the nursing staff," the hospital said in a statement. "King Edward VII's Hospital deeply regrets this incident."

"This was a foolish prank call that we all deplore," John Lofthouse, the hospital's chief executive, said in the statement. "We take patient confidentiality extremely seriously, and we are now reviewing our telephone protocols."

The radio station also apologized for the prank call.

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Egyptian military says only dialogue can avert disaster

CAIRO (Reuters) - Egypt's military said on Saturday only dialogue could avert "catastrophe", stepping into a crisis pitting Islamist President Mohamed Mursi against opponents who accuse him of grabbing excessive power.

State broadcasters interrupted their programs to read out an army statement telling feuding factions that a solution to the upheaval in the most populous Arab nation should not contradict "legitimacy and the rules of democracy".

That sounded like a swipe at protesters who have besieged the palace of the freely elected president and called for his removal, going beyond mainstream opposition demands for him to retract a decree that expanded his powers.

The statement also called for a "serious" national dialogue - perhaps one more credible than talks convened by Mursi on Saturday in the absence of opposition leaders. They insist he must first scrap his November 22 decree, defer next week's popular vote on a new constitution and allow the text to be revised.

Deep rifts have emerged over the destiny of a country of 83 million where the end of Hosni Mubarak's 30 years of military-backed one-man rule led to a messy army-led transition, during which the Muslim Brotherhood and its allies won two elections. Many Egyptians crave a return to stability and economic recovery.

The spokesman for the main Islamist coalition demanded that the referendum go ahead on time on the constitution drafted by an Islamist-led assembly from which liberals had walked out.

The army, which ran Egypt for months after Mubarak fell in February 2011, again cast itself primarily as the neutral guarantor of the nation. A military source said there was no plan to retake control of the country or its turbulent streets.

"DARK TUNNEL"

"The armed forces affirm that dialogue is the best and only way to reach consensus," the statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

The instability in Egypt worries the West, especially the United States, which has given Cairo billions of dollars in military and other aid since it made peace with Israel in 1979.

The army might be pushing the opposition to join dialogue and Mursi to do more to draw them in, said Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies.

He discounted the chance of direct military intervention, adding: "They realize that interfering again in a situation of civil combat will squeeze them between two rocks."

However, the military did seem poised to take a more active role in security arrangements for the December 15 referendum.

A cabinet source said the cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who are normally in charge of election security.

According to the state-run daily al-Ahram, an expanded military security role might extend to the next parliamentary election and, at the president's discretion, even beyond that.

Mursi's office said the "national dialogue", chaired by the president, had begun with about 40 political and other public figures discussing "means to reach a solution to differences over the referendum...and the constitutional decree".

The army issued its statement while protesters were still camped out by the gates of the presidential palace.

The tens of thousands of Mursi foes who surged past tanks and barbed wire to reach the palace gates on Friday night had dispersed. But a hard core stayed overnight in a score of tents.

"LEAVE"

Some had spray-painted "Down with Mursi" on tanks of the elite Republican Guard posted there after clashes between rival groups killed at least seven people and wounded 350 this week.

Others draped the tanks with posters of Mursi and the word "Leave" scored across his face in red letters.

"We are no longer calling for scrapping the decree and delaying the referendum," Samir Fayez, a Christian protester at the palace, said. "We have one demand in five letters: leave."

Nearby, a Mursi supporter named Mohamed Hassan was quietly observing the scene. He suggested that the Muslim Brotherhood and its ultra-orthodox Salafi Islamist allies could easily overwhelm their foes if they chose to mobilize their base.

"The Brotherhood and Salafis by themselves are few but they have millions of supporters who are at home and haven't taken it to the streets yet," murmured the 40-year-old engineer.

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of Mursi's palace, saying they "ruin legitimacy".

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

The well-organized Brotherhood, which thrust Mursi from obscurity to power, remains his surest source of support, with over 80 years of religious and political struggle behind it.

In the referendum, due to be followed by a parliamentary election, Islamist proponents of the constitution may benefit from the votes of millions of Egyptians desperate for the country to move on and revive its crippled economy.

(Additional reporting by Edmund Blair, Omar Fahmy and Yasmine Saleh; Editing by Mark Trevelyan)

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Football: Comfortable Bayern cruise as Dortmund slip

BERLIN: Bayern Munich moved a step closer to the Bundesliga title on Saturday as they beat Augsburg 2-0 and extended their lead over two-time reigning champions Borussia Dortmund to 14 points.

Thomas Mueller and Mario Gomez scored in Bayern's victory while 10-man Dortmund lost 3-2 at home against Wolfsburg. Munich jumped onto 41 points while Dortmund remained on 27 points one game day before the winter break.

Second-placed Bayer Leverkusen have 30 points and will play at Hanover 96 on Sunday.

Bayern dominated the proceedings in Augsburg and finally grabbed the lead in the 40th minute from the spot through Mueller after Augsburg's Gibril Sankoh handled Toni Kroos' pass.

Mario Gomez doubled the advantage in the 62nd minute, just two minutes after coming on, to decide the contest.

"Three points, so it was a nice Saturday," said Bayern captain Philipp Lahm.

"In order to win the championship, we have to win these kinds of game, and we did that," said Gomez.

In Dortmund, Juergen Klopp's hosts went ahead on a free kick by Marco Reus in the sixth minute.

Wolfsburg equalised in the 36th minute from the spot through Diego one minute after Marcel Schmelzer was red-carded for stopping Bas Dost's shot on the line with his hand - though replays showed the defender blocked the ball with his knee.

Wolfsburg took a 2-1 lead in the 41st minute as Naldo volleyed home Diego's free kick pass.

Jakub Blaszczykowski converted a penalty in the 61st minute as Dortmund pulled even at 2-2 but Dost re-established Wolfsburg's lead in the 73rd minute.

"I am satisfied with our performance - but the result hurts us a lot," said Klopp.

"It decided the game that we had to play the final 54 minutes a man down. Still, we had more ball possession and still felt we could win. But it was difficult to maintain the high energy level."

Fourth-placed Schalke 04's dropped further behind the leading trio with a 3-1 loss at VfB Stuttgart thanks to Vedad Ibisevic's hat-trick.

Stuttgart, who pulled even with Schalke with 25 points each, stormed ahead after two minutes through Ibisevic before Schalke equalised in the 12th minute though Ciprian Marica.

Ibisevic gave Stuttgart the lead 2-1 from the spot in the 38th minute and completed his hat-trick after 61 minutes.

Both teams finished with 10 men as Gotoku Sakai of Stuttgart (67th minute) and Schalke's Jermaine Jones (73rd) were sent off.

With 24 points, Eintracht Frankfurt could pass Schalke if they get a point at home against Werder Bremen later Saturday.

On Friday, Artjoms Rednevs scored two goals in Hamburg's 2-0 victory at home over Hoffenheim. Hamburg have 24 points and Hoffenheim 12.

Sebastian Polter (27th minute) and Markus Feulner (90th) scored to give Nuremberg (19 points) a 2-0 win over Fortuna Duesseldorf (18).

Freiburg (23) won 1-0 over Greuther Fuerth (8) thanks to Daniel Caligiuri's goal in the 15th minute.

The other Sunday match is Borussia Moenchengladbach (21) hosting Mainz 05 (23).

- AFP/fa

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India misguided, paranoid over China: Guha

MUMBAI: A good half-hour into the discussion on 'India, China and the World', historian Ramachandra Guha issued a disclaimer—all the three members on the panel had been to China only once. "We should learn their language, promote quality research, and have a panel on China driven by Chinese scholars," he said. And that was the general tenor of the debate—that the Indian attitude to China was influenced by a mix of ignorance, cautious optimism about partnerships and a whole lot of misguided paranoia. "Don't demonise the Chinese, please," Guha finally said in response to a question.

"China has existed in our imaginations," observed Sunil Khilnani, professor of politics and author of The Idea Of India. "There's been very little sustained engagement with the reality of China and very little of our own produced knowledge about China." It was after the events of 1962 ('war' in the popular imagination, 'skirmish' to the scholars participating in the discussion), explained Khilnani, that a miffed India "withdrew". It's the 50th anniversary of that exchange this year, and "what we haven't been able to do is learn from the defeat", observed Khilnani. Both could have benefited from greater engagement. "China has had a very clear focus on primary education and achieved high levels of literacy before its economic rise. It has also addressed the issue of land reform," said Khilnani. Guha added that China could learn from the "religious, cultural and linguistic pluralism" in India.

But China and India weren't always so out of sync with each other. Srinath Raghavan, a scholar of military history, got both Guha and Khilnani to talk about pre-1962 relations between the two when the picture was rosier. Tagore was interested in China and so was Gandhi. Both were very large countries with large populations and shared what Guha calls a "lack of cultural inferiority". "They were both," he continued, "also heavily dependent on peasant communities." Nehru was appreciative of China's will to modernize and industrialize and its adoption of technology to achieve those ends. In turn, Chinese politicians argued for Indian independence.

Things soured more, feel both Khilnani and Guha, after the Dalai Lama fled to India in 1959. "He was welcomed here as a spiritual leader but the intensification of the conflict dates to the Dalai Lama's flight," said Guha. Both Guha and Khilnani argued that Nehru's decision to not react aggressively to China's occupation of Tibet was, in the long run, the right one and prevented further "militarization" of the region. An audience member wondered if that didn't make India "China's puppet". Guha disagreed. "If there's a Tibetan culture alive today," he said, "it's not because of Richard Gere. Don't believe in the hypocrisy of the Western countries. Will they give them land, employment, dignified refuge? The Tibetans is one of the few cases in which our record is honorable."

But the difference in levels of development and the lopsided trade relations between the two countries have only fuelled the suspicions many Indians seem to harbour about China. People were worried, said Guha, even about cricket balls made in China. Audience questions reflected those worries. A member asked about China's "strategy to conquer the world" and its likely impact on India. Guha cautioned against stereotypes; Khilnani explained, "History is littered with the debris of states that have tried to dominate the world. What we're doing may be more long-lasting."

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Nurse Duped by 'Queen's' Prank Call Found Dead

The hospital receptionist who was hoaxed by a prank call from a DJ claiming to be the queen asking about Kate Middleton has been found dead.

"It is with very deep sadness that we confirm the tragic death of a member of our nursing staff," the hospital said in a statement released today.

The nurse was identified as Jacintha Saldanha. The hospital said that Saldanha worked at the hospital for more than four years. They called her a "first-class nurse" and "a well-respected and popular member of the staff."

"We can confirm that Jacintha was recently the victim of a hoax call to the hospital," the statement said. "The hospital had been supporting her throughout this difficult time."

The hospital extended their "deepest sympathies" to family and friends, saying that "everyone is shocked" at this "tragic event."

"She will be greatly missed," the hospital said.

Earlier this week, the hospital fell for a prank call from an Australian radio show where the hosts pretended to be Queen Elizabeth II and Prince Charles looking to speak to Kate Middleton, who had been admitted to the hospital for her pregnancy. The call was put through to a second nurse who told the royal impersonators that Kate was "quite stable" and hadn't "had any retching."

Kate Middleton Leaves Hospital After Extreme Morning Sickness Watch Video

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Saldanha was the nurse who transferred the impersonators to the second nurse who gave information about Kate's condition.

"The Duke and Duchess of Cambridge are deeply saddened to learn of the death of Jacintha Saldanha," a spokesman from St. James Palace said in a statement.

"Their Royal Highnesses were looked after so wonderfully well at all times by everybody at King Edward VII Hospital, and their thoughts and prayers are with Jacintha Saldanha's family, friends and colleagues at this very sad time," the statement said.

Police were called to an address near the hospital at about 9:35 a.m. GT today to "reports of a woman found unconscious," according to a statement from Scotland Yard.

The woman was pronounced dead at the scene. "Inquiries continue to establish the circumstances of the incident. Next of kin have been informed," the statement said.

Circumstances of the death being investigated, but are not suspicious at this stage, according to police.

The duchess spent three days at the hospital undergoing treatment for hyperemesis gravidarum, severe or debilitating nausea and vomiting. She was released from the hospital on Thursday morning.

The Tuesday morning prank call came from Australian DJ's Mel Greig and Michael Christian. They impersonated the royals, complete with exaggerated accents. They even enlisted two co-workers to bark like the queen's pet corgis.

The Sydney radio station, 2DayFM, could not be immediately reached for comment.

The Twitter accounts of both radio personalities have been deactivated, but it is unknown when the accounts were shut down. The DJ's are being heavily criticized on Twitter, with many people calling for them to resign or be fired.

The queen impersonator asked for her granddaughter and was promptly transferred to another hospital employee.

"I'm just after my granddaughter, Kate. I want to see how her little tummy bug is going," the radio host said, suppressing laughter.

"She's sleeping at the moment, and she has had an uneventful night and sleep is good for her," the nurse said. "She's been getting some fluids to rehydrate her because she was quite dehydrated when she came in, but she's stable at the moment."

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Egypt struggle seen costing Mursi, even if he wins

CAIRO (Reuters) - The crisis unleashed by President Mohamed Mursi's bid to wrap up Egypt's transition on his own terms has eroded his nation's faith in their nascent democracy and will complicate the already unenviable task of government.

His effort to drive through a constitution against the wishes of major sections of society, including a Christian minority, has damaged prospects for building consensus needed to tackle challenges ahead, such as fixing a broken economy.

Having promised to be a president for all, Mursi stands accused of putting the interests of his group, the Muslim Brotherhood, ahead of others who say their aspirations are not reflected in the draft to be put to a December 15 referendum.

On the other side, suspicions harbored by Islamists towards their secular-minded opponents have only deepened as a result of the turmoil ignited by Mursi's effort to fast-track the final stage of the transition from Hosni Mubarak's rule.

With the more extreme among them opposed to the very notion of democracy, the Islamists say their rivals are not respecting the rules of the game that put them in the driving seat by winning free and fair elections.

People anxious to see Egypt recover from two years of turbulence fear bad blood could persist and squash hopes for cooperation needed to help Mursi rule smoothly and deliver much-needed reforms.

"If they succeed in the referendum, they will see that as a step forward, but not without cost," said a Western diplomat.

Though Mursi won international praise for mediating a truce in Gaza, the violence on his own streets worries the West and particularly the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979. U.S. President Barack Obama told Mursi on Thursday of his "deep concern" about casualties during protests.

A victim of the polarization could be the Brotherhood's plans to forge electoral alliances with liberals in forthcoming parliamentary polls. The head of the Brotherhood's Freedom and Justice Party told Reuters this week he saw such alliances as preferable to an ideological tie-up with other Islamists.

The divisions are now playing out in the streets. Seven people were killed and hundreds wounded this week in clashes between Islamists and their rivals. A call by Mursi for dialogue was rebuffed by activists who are to protest again on Friday.

"We said that this state of polarization, if it was not dealt with properly, would reach this point, and it has," said Ayman Al-Sayyad, who quit his post as a Mursi adviser on Wednesday following an eruption of violence.

"This was the scene that we were trying to avoid," he added in an interview with al-Hayat television.

The inclusive image Mursi had tried to build around his administration was one of the first victims of the crisis that mushroomed following a November 22 decree that expanded his powers and protected his decisions from judicial review.

RESIGNATIONS

A Christian and a woman were among the first to resign from his staff, as surprised by the decree as most Egyptians. Despite an early bout of violence, Mursi showed no sign of wavering and appeared to brush off his critics.

"I see things more than they do," he told Time.

With speculation swirling around how he took the decision, Egyptians long suspicious of the Brotherhood have concluded Mursi is running the country at the group's command.

In response, the Islamists complain that many of Mursi's attempts at outreach were rebuffed early on. Their view of the opposition has grown dimmer through the crisis. Brotherhood members have started to dismiss opponents as "feloul", meaning "remnants" - a pejorative implying loyalty to Mubarak.

"The really unfortunate side effect of the last two weeks is the political atmosphere has become really toxic. I fear that could endure long past the current crisis," said Elijah Zarwan, a fellow with the European Council on Foreign Relations.

"The next government is going to have to move very quickly to address many problems and it will need cooperation. In the current atmosphere, it is hard to imagine others cooperating."

Such cooperation will be at a premium for introducing policies aimed at reining in a crushing budget deficit and staving off a balance of payments crisis. Egypt's economy has lost $70 billion to $80 billion of economic output since Mubarak was ousted, in one economist's estimate.

Top of the economic to-do list are measures to cut back on fuel subsidies - one of the biggest drains on state finances. Tweaks to such support are bound to be unpopular in a nation where both rich and poor have grown used to cheap petrol.

"He has inherited an economy that is weak and needs serious surgery, so he is going to have to make controversial decisions over the next year or so," said Simon Kitchen, strategist at EFG-Hermes, an Egyptian investment bank.

"Ideally you want to do that in an environment where you have some sort of political consensus," he said.

"THEY BURNED THEIR BRIDGES"

Some subsidy reform and other steps to cut waste are part of a program agreed in principle with the International Monetary Fund for $4.8 billion loan designed to support the budget.

The IMF board meets on December 19 to discuss approval of the loan, which would be seen by investors as a seal of approval for the government's reform program.

Besides the economy, Mursi needs wider backing to tackle other problems including a judiciary which his opponents agree needs overhaul. But even when he sacked the unpopular, Mubarak-era prosecutor general, Mursi was criticized for showing an autocratic streak in the way he went about it.

In the new system of government outlined in the draft constitution, Egypt's next parliament will have a say over the shape of government. A parliamentary election would go ahead some two months later if the constitution is approved in the referendum.

With that in mind, the Freedom and Justice Party is already eyeing alliances to fight the parliamentary election.

FJP leader Saad al-Katatni said in an interview his preference was for an alliance with liberals, not the hardline Islamists whose backing has helped Mursi through the crisis. "Our preferred option is that the alliance not be ideological so that we don't have a split in the nation," he said.

The Brotherhood had kept the nascent hardline Salafi parties at arm's length as they emerged after Mubarak's political demise. That trend has gradually been reversed as the Brotherhood has looked to fellow Islamists for support.

"They burned their bridges with the secular camp and relied heavily on the Salafi camp. We don't feel that is where they naturally want to be right now," said the Western diplomat, speaking on condition of anonymity.

Sentiment from liberal parties suggests the Brotherhood will struggle to convince liberals that it is a trustworthy partner.

"I don't think the man realizes the degree of rebellion and rage the people have," said Ahmed Said, head of the liberal Free Egyptians Party, referring to Mursi. "The country is totally divided and polarized. You have two nations now."

(Writing by Tom Perry; Editing by Peter Graff)

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Football: City will benefit from European exit: Ferguson

MANCHESTER, United Kingdom: Manchester United manager Alex Ferguson says that Manchester City's European demise has given Roberto Mancini's side a clear advantage in the race for the Premier League title.

City, who host leaders United on Sunday, failed to clinch a place in the Europa League after finishing bottom of their Champions League group following defeat by German side Borussia Dortmund on Tuesday.

Yet Ferguson told a news conference in Manchester on Friday that fewer games and distractions would aid their neighbours as they look to defend the title they won last season.

"I honestly think it is an advantage to City," said the long-serving United manager.

"The less games, the less chance of injuries. It gives them a full week to prepare for games now, but on the other hand, you have to keep (players) happy.

"They have a big squad, probably a bigger squad than most teams. I think they would rather have European football. Any big team would want European football all the time, and that's the biggest disappointment to them.

"But out of that disappointment, the advantage is there for them in terms of use of players and time to prepare for games. So there's no question it's an advantage to them."

United will open up a six-point lead at the top of the table if they win at the home of their neighbours.

Yet the 19-time champions of England arrive at the Etihad Stadium having lost three of their last six league and cup games and with concerns about the performances of their defence.

In addition, memories of the 6-1 thrashing his players suffered at the hands of City in October 2011 remain fresh in Ferguson's mind.

"It did (have an impact), particularly the 6-1 defeat, because of the goal difference. It turned us right round and that's what cost us (the title)," he added.

United have managed just four clean sheets in 23 league and cup games this season, and Ferguson added: "It's not as though we are ignoring it.

"City will have expected us to have worked on that this week. We have lost, I think, 10 goals from set plays this season, which is a lot.

"We hope to find a solution and if you do find a solution, it makes a difference. It will be a tight game on Sunday, there won't be a lot in it and we have enough players to make an impact."

As for the prospect of opening up a six-point lead, Ferguson said: "It wouldn't mean a great deal because there is such a long time to go until the end of the season."

Ferguson believes either United or City will win the title, claiming Chelsea, Arsenal and Tottenham Hotspur have fallen too far behind in the table.

"I think it's going to be close between the two sides," he said.

"We have that gap over Chelsea, Arsenal and Tottenham. It would be difficult to think the two of us would collapse and allow another team to get in."

Ferguson reiterated his statement from last season that City were now United's biggest rivals in the league before questioning the number of penalties his rivals have been awarded in recent times.

"It's 21 in the last year, isn't it? Something like that. If we were to get that number of penalty kicks there would have been an inquiry in the House of Commons, and protests."

Captain Nemanja Vidic had hoped to return to the centre of defence after three months out with a knee injury.

But Ferguson says the Serbia defender is not ready, while Nani (hamstring) is a definite absentee.

Japan midfielder Shinji Kagawa (knee) is also a doubt, along with Tom Cleverley (calf).

- AFP/fa

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BJP has 15 leaders fit for PM job: MP minister

BHOPAL: We don't need Congress leader Digvijay Singh's certificate to decide who will be the BJP's Prime Ministerial candidate,'' Madhya Pradesh minister for industries Kailash Vijayavargiya said on Friday while reacting to AICC general secretary Digvijay Singh's observation on Thursday that Leader of Opposition Sushma Swaraj would be a better Prime Ministerial candidate that Gujarat chief minister Narendra Modi.

Digvijay Singh had compared Sushma Swaraj to former Prime Minister Atal Behari Vajpayee while calling her the moderate face'' in present BJP leadership.

Responding to that comment, Kailash Vijayavargiya, a front-line cabinet minister in Madhya Pradesh said: There is no dearth of Prime Ministerial candidates in the BJP. The party has more than 15 leaders who could fill-in for the top job.'' Vijayavargiya was speaking to journalists at the state assembly media lounge.

Asked if chief minister of Madhya Pradesh Shivraj Singh Chouhan was one of the 15 leaders who could be fit for the PM position, Kailash Vijayavargiya specified: Let us start from our veteran leader LK Advani, then Nitin Gadkari, Sushma Swaraj, Arun Jaitley, Rajnath Singh, Murli Manohar Joshi, Venkaiah Naidu, Uma Bharati. In the states, the BJP has chief ministers who could be Prime Ministerial candidates like Narendra Modi, Shivraj Singh Chouhan and Raman Singh.'' Vijayavargiya said that at the right time, the right person will be chosen for the job by the party.

Retorting further to AICC general secretary Digvijay Singh's comment, Vijayavargiya said: None take Digvijay Singh's statements seriously. Not even the Congress party. He just makes such disputable and controversial comments to remain in the media glare.''

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Winter Chill Descends on Frozen Fiscal Cliff Talks

A chill has descended on Washington just in time for tonight's lighting of the National Christmas Tree.

President Obama will preside over an evening festival of star-studded carols and sparkling displays of holiday cheer on the White House Ellipse.

But don't expect any of the holiday good will to warm the political frost over the fiscal cliff talks.

The White House is mandating that tax hikes for the wealthiest Americans must be part of any deficit-reduction deal with congressional Republicans, who stand equally opposed. Negotiations have ground to a standstill.

"There's no prospect for an agreement that doesn't involve those rates going up on the top 2 percent of the wealthiest," Treasury Secretary Timothy Geithner said Wednesday.

He also said the administration is "absolutely" willing to allow the package of deep automatic spending cuts and across-the-board tax hikes to take effect Jan. 1 if they don't get some increase in those tax rates.

Toby Jorrin/AFP/Getty Images

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Fiscal Cliff: What Republicans, Democrats Agree on So Far Watch Video

Obama spoke by phone with House Speaker John Boehner on Wednesday, the first time both men had been in contact in one week. On Monday, Boehner attended a White House holiday party but did not greet Obama.

Republicans say Obama has fixated on tax hikes for the rich at the exclusion of entitlement program reforms to curb spending, which they are seeking as part of a "balanced" deal.

"The president talks about a balanced approach, but he's rejected spending cuts that he has supported previously and refuses to identify serious spending cuts he is willing to make today," Boehner said Wednesday. "This is preventing us from reaching an agreement."

As the showdown continues, Obama will take his tax argument on the road to Virginia, visiting the home of a middle class family to highlight the importance of lawmakers extending current, lower tax rates for 98 percent of U.S. earners.

Both parties agree they should be extended before they expire at the end of the year. But they remain tangled in the broader debate over spending cuts and upper-income tax rates.

The average American family of four would pay an estimated $2,200 more in taxes next year if the rates for middle-income earners are not extended.

Economists say a failure to resolve the standoff before Dec. 31 could thrust the U.S. economy back into a recession, a prospect many Americans are also worried about, according to a new poll.

Fifty-three percent of voters say lawmakers' failure to avoid the "cliff" would be "bad for their personal financial situation," compared to just 13 percent who said it wouldn't, according to the Quinnipiac University Polling Institute.

The same poll found a majority – 53 percent – trusting Obama and Democrats more than Republicans to work out a deal in the deficit negotiations.

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Military halts clashes as political crisis grips Egypt

CAIRO (Reuters) - Egypt's Republican Guard restored order around the presidential palace on Thursday after fierce clashes killed seven people, but passions ran high in a contest over the country's future.

President Mohamed Mursi had been due to address the nation, but a presidential source said the Islamist leader, criticized by his opponents for his silence in the last few days, might speak on Friday instead. He did not explain the possible delay.

Hundreds of Mursi supporters who had camped out near the palace overnight withdrew before a mid-afternoon deadline set by the Republican Guard, an elite unit whose duties include protecting the palace. Scores of opposition protesters remained, but were kept away by a barbed wire barricade guarded by tanks.

The military played a big role in removing President Hosni Mubarak during last year's popular revolt, taking over to manage a transitional period, but had stayed out of the latest crisis.

Mursi's Islamist partisans fought opposition protesters well into the early hours during dueling demonstrations over the president's November 22 decree to expand his powers to help him push through a mostly Islamist-drafted constitution.

Officials said seven people were killed and 350 wounded in the violence, for which each side blamed the other. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Prosecutors investigating the unrest said Brotherhood members had detained 49 wounded protesters and were refusing to release them to the authorities, the state news agency said.

The Brotherhood's spokesman Mahmoud Ghozlan denied this, saying all "thugs" detained by members of the Islamist group had been handed over to the police or the Republican Guard.

The street clashes reflected a deep political divide in the most populous Arab nation, where contrasting visions of Islamists and their liberal rivals have complicated a struggle to embed democracy after Mubarak's 30 years of one-man rule.

MILITARY'S ROLE

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, has urged dialogue.

The commander of the Republican Guard said deployment of tanks and troop carriers around the presidential palace was intended to separate the adversaries, not to repress them.

"The armed forces, and at the forefront of them the Republican Guard, will not be used as a tool to oppress the demonstrators," General Mohamed Zaki told the state news agency.

Hussein Abdel Ghani, spokesman of the opposition National Salvation Front, told Reuters more protests were planned, but not necessarily at the palace. "Our youth are leading us today and we decided to agree to whatever they want to do," he said.

Outside Cairo, supporters and opponents of Mursi clashed in his home town of Zagazig in the Nile Delta, state TV reported.

Egypt plunged into renewed turmoil after Mursi issued his November 22 decree and an Islamist-dominated assembly hastily approved a new constitution to go to a referendum on December 15.

Since then six of the president's advisers have resigned. Essam al-Amir, the director of state television quit on Thursday, as did a Christian official working at the presidency.

The Supreme Guide of the Brotherhood, to which Mursi belonged before he was narrowly elected president in June, appealed for unity. Divisions among Egyptians "only serve the nation's enemies", Mohamed Badie said in a statement.

BLOODY CLASHES

Rival factions used rocks, petrol bombs and guns in the clashes around the presidential palace.

"We came here to support President Mursi and his decisions. He is the elected president of Egypt," said demonstrator Emad Abou Salem, 40. "He has legitimacy and nobody else does."

Opposition protester Ehab Nasser el-Din, 21, his head bandaged after being hit by a rock the day before, decried the Muslim Brotherhood's "grip on the country", which he said would only tighten if the new constitution is passed.

Mursi's opponents accuse him of seeking to create a new "dictatorship". The president says his actions were necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.

U.N. Human Rights Commissioner Navi Pillay urged the Egyptian authorities to protect peaceful protesters and prosecute anyone inciting violence, including politicians.

"The current government came to power on the back of similar protests and so should be particularly sensitive to the need to protect protesters' rights to freedom of expression and peaceful assembly," Pillay said in Geneva.

Mursi has shown no sign of buckling under pressure from protesters, confident that the Islamists, who have dominated both elections since Mubarak was overthrown, can win the referendum and the parliamentary election to follow.

Mahmoud Hussein, the Brotherhood's secretary-general, said holding the plebiscite was the only way out of the crisis, dismissing the opposition as "remnants of the (Mubarak) regime, thugs and people working for foreign agendas".

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

Egypt's pound hit an eight-year low on Thursday, after previously firming on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

Foreign exchange reserves fell by nearly $450 million to $15 billion in November, indicating that the Central Bank was still spending heavily to bolster the pound. The reserves stood at about $36 billion before the anti-Mubarak uprising.

(Additional reporting by Tom Perry, Edmund Blair and Marwa Awad; Writing by Alistair Lyon; Editing by Peter Graff)

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ECB slashes growth forecasts, keeps door open to rate cuts

FRANKFURT: The European Central Bank slashed its eurozone growth forecasts Thursday, keeping the door open to more interest rates cuts, even as it insisted it was up to governments to solve the debt crisis.

As widely expected, the ECB's decision-making governing council voted to leave the bank's main refinancing rate at a historic low of 0.75 percent at its last policy meeting this year.

But ECB chief Mario Draghi -- who last month had said further rate cuts were not discussed at all -- revealed there had been "wide discussion" of such a move this time round and the decision was anything but unanimous.

Nevertheless, "in the end the prevailing consensus was to leave the rates unchanged," the Italian central banker said.

The 23-member governing council traditionally likes any decisions to be unanimous or, failing that, by consensus.

And with economic gloom deepening over the 17 countries that share the euro, many ECB watchers believe there is room for additional monetary easing, even if none of them had predicted a cut in the bank's refi rate at this month's meeting.

The bank might be persuaded to act if economic prospects continue to deteriorate, analysts argued.

And the outlook looks gloomy indeed.

In its regular quarterly staff economic projections, the ECB forecast that the eurozone economy will contract both this year and next year and only return to growth in 2014.

According to the updated forecasts, the euro area economy is set to shrink by 0.5 percent in 2012 rather than by 0.4 percent as predicted earlier.

And it would shrink again by 0.3 percent in 2013, instead of growing by 0.5 percent.

Only in 2014 would the economy grow again, by an estimated 1.2 percent, the forecasts said.

The ECB governing council "continues to see downside risks to the economic outlook for the euro area," Draghi said.

"Over the shorter term, weak activity is expected to extend into next year."

Nevertheless, a gradual recovery should start "later" in 2013 as the ECB's low-interest rate policy and rising market confidence fed through into household spending, while a strengthening of foreign demand should support export growth, he argued.

Thus, the ball was very much in the governments' court to solve the two-year-old crisis, Draghi insisted.

By cutting interest rates and launching a raft of anti-crisis measures the ECB had "already done much that is needed," he said, even if he refused to explicitly rule out additional action further down the line.

"In order to sustain confidence, it is essential for governments to reduce further both fiscal and structural imbalances and to proceed with financial sector restructuring," he insisted.

A number of ECB watchers said they still expected the central bank to lower its rates early next year if the economy deteriorated still further.

"The ECB appears to have the door open for an interest rate cut, and we expect it to step through early in 2013," said Howard Archer at IHS Global Insight.

"With the eurozone clearly facing a difficult fourth quarter and beyond after moving into modest recession in the third quarter, and with the underlying inflation situation in the Eurozone looking relatively benign, we believe that the ECB has ample justification and scope to take interest rates down from 0.75 percent to 0.50 percent sooner rather than later," he said.

But others were not so sure.

Draghi "was quite clear that no further monetary policy action is to be expected in the near future," said Marie Diron at Ernst & Young Eurozone Forecast.

Commerzbank chief economist Joerg Kraemer said he "would forecast a lower refi rate if leading economic indicators declined in contrast to our expectations."

ING Belgium economist Carsten Brzeski felt that the fact that the ECB kept rates on hold "even after these strong downward revisions for growth and inflation in our view shows that the ECB prefers to stimulate the economy with non-standard measures and not with additional rate cuts."

A rate cut "might not entirely be off the table but would require an even worse weakening of the economy," Brzeski said.

-AFP/ac

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PMO pushes for hike in rail fares after nine years

NEW DELHI: Get ready to pay more for rail travel by next March as the government is trying to set up of an independent tariff regulator.

PM Manmohan Singh on Thursday stepped in to accelerate the much-awaited reforms in railways, which has been neglected for many years.

The Prime Minister's Office (PMO) has set deadlines for railways' top brass to set up independent tariff regulator and implement pending projects within a timeframe.

Singh has asked an inter-ministerial group (IMG), headed by chairman of Railway Board, to finalize the proposal for setting up a Rail Tariff Authority by December 31.

The regulator will suggest rationalization of passenger fares, which have not been touched for the past nine years, thanks to populist pressures. The PMO has sought to expedite the setting up of the regulator, directing the transporter to move a Cabinet note by January 15, 2013.

Soon after taking charge, railway minister Pawan Kumar Bansal has hinted at accelerating the proposal as the state-run transporter is cash-strapped due to the current practice of cross-subsidizing passenger fare with freight earning.

The regulator is expected to examine the operational expenditure, including diesel and power cost for running trains, and suggest passenger fare hike to absorb the escalated cost.

Faced with acute funds crunch, the government is aware that there is no other way than revising passenger fare to implement its safety and modernization efforts.

Worried over the political fallout, the ministry, under regional leaders for several years, could not rationalize passenger fares for long.

The setting up of a regulator will be a big step forward towards de-politicization of fare hike, which has not been rationalized since 2002-03, leading to a loss of around 24,000 crore annually .

The PMO has also directed railways to expedite setting up of long-pending Madhepura and Marhowra loco factories under the PPP mode. Railways has been instructed to invite bids for the Madhepura project by the end of this month, and award the project before the rail budget in March, 2013. "Timelines for the Marhowra project will be announced by December 15," it said.

To accelerate elevated rail corridor project in Mumbai, the PMO directed to sign the state support agreement with Maharashtra government within the next 15 days. Railways will finalize important milestones with timelines by December 31, 2012, and bids for the project will be invited before the upcoming rail budget.

UPA's ambitious project dedicated freight corridor was applauded as it is shaping up much better than other large ventures.

Railways was asked to submit revised estimates with details on source of funding for the dedicated freight corridor project by December 15. It will also provide timelines for Sonnagar-Dankuni project on the eastern corridor.

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

___(equals)

Johnson can be reached at https://twitter.com/GeneAPseattle

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John McAfee Seeks Asylum, Thanks God for 'Sanity'

Eccentric software tycoon John McAfee, wanted for questioning in the shooting death of his neighbor, has made his escape from Belize to Guatemala, where he told ABC News he will be seeking asylum.

"Thank God I am in a place where there is some sanity," McAfee said. "I chose Guatemala carefully."

McAfee, 67, has been on the run from police in the Central American country of Belize since the Nov. 10 murder of his neighbor, fellow American expatriate Greg Faull. Investigators said that McAfee was not a suspect in the death of the former developer, who was found shot in the head in his house on the resort island of San Pedro, but that they wanted to question him.

McAfee has been hiding from police ever since – a tactic his new lawyer, Telesforo Guerra, says was necessary.

"You don't have to believe what the police say," Guerra told ABC News. "Even though they say he is not a suspect they were trying to capture him." Guerra is Guatemala's former Attorney General, and, says McAfee, the uncle of McAfee's 20-year-old girlfriend, Samantha.

McAfee says the government raided his beachfront home and threatened Samantha's family.

"Fifteen armed soldiers come in and personally kidnap my housekeeper, threaten Sam's father with torture and haul away half a million dollars of my s___," claimed McAfee. "If they're not after me, then why all these raids? There've been eight raids!"

Johan Ordonez/AFP/Getty Images

John McAfee Interview: Software Millionaire on the Run Watch Video

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McAfee will hold a press conference at 3 p.m. Eastern Time in Guatemala City to announce his asylum bid. He has offered to answer questions from Belizean law enforcement over the phone, and denies any involvement in Faull's death.

For three weeks, McAfee has been on the run, blogging about his flight, flinging accusations at the Belize government and demanding the release of several friends who have been arrested. He zipped around in speedboats and vans, dyed his hair and beard black and said he'd been sleeping in a bug-infested bed.

Over the weekend, a post on his blog claimed that he had been detained on the Belizean/Mexico border.

On Monday, a follow-up post said that the "John McAfee" taken into custody was actually a "double" who was carrying a North Korean passport with McAfee's name.

That post claimed that McAfee had already escaped Belize and was on the run with Samantha and two reporters from Vice Magazine.

McAfee did not reveal his location in that post, and a spokesperson for Belize's National Security Ministry, Raphael Martinez, told ABC News on Monday that no one by McAfee's name was ever detained at the border and that Belizean security officials believed McAfee was still in their country.

However, a photo posted by Vice Magazine on Monday with their article, "We Are With John McAfee Right Now, Suckers," apparently had been taken on an iPhone 4S and had location information embedded in it which revealed the exact coordinates where the photo was taken - in the Rio Dulce National Park in Guatemala – as reported by Wired.com.

A subsequent blog post on McAfee's site confirmed that the photo had mistakenly revealed his location, and said that Monday was "chaotic due to the accidental release of my exact co-ordinates by an unseasoned technician at Vice headquarters."

"We made it to safety in spite of this handicap," the post reads. "I had to cancel numerous interviews with the press yesterday because of this and I apologize to all of those affected."

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Egypt clashes erupt despite proposal to end crisis

CAIRO (Reuters) - Islamists fought protesters outside the Egyptian president's palace on Wednesday, while inside the building his deputy proposed a way to end a crisis over a draft constitution that has split the most populous Arab nation.

Stones and petrol bombs flew between opposition protesters and supporters of President Mohamed Mursi who had flocked to the palace in response to a call from the Muslim Brotherhood.

Two Islamists were hit in the legs by what their friends said were bullets fired during the clashes in streets around the compound in northern Cairo. One of them was bleeding heavily.

A leftist group said Islamists had cut the ear off one of its members, inflicting serious head wounds on him.

Riot police began to deploy between the two sides to try to end the violence which flared after dark despite an attempt by Vice President Mahmoud Mekky to calm the political crisis.

He said amendments to disputed articles in the draft constitution could be agreed with the opposition. A written agreement could then be submitted to the next parliament, to be elected after a referendum on the constitution on December 15.

"There must be consensus," he told a news conference, saying opposition demands must be respected to overcome the crisis.

Opposition leader Amr Moussa, a former foreign minister and secretary-general of the Arab League, said Mursi should make a formal offer for dialogue if his opponents were to consider seriously Mekky's ideas for a way out of the political impasse.

"We are ready when there is something formal, something expressed in definite terms, we will not ignore it," Moussa told Reuters during talks with other opposition figures.

Opposition leaders have previously urged Mursi to retract a decree widening his powers, defer the plebiscite and agree to revise the constitution, but have not echoed calls from street protesters for his overthrow and the "downfall of the regime".

UNDER SIEGE

Mursi had returned to work at his compound a day after it came under siege from protesters furious at his assumption of extraordinary powers via an edict on November 22.

The president, narrowly elected by popular vote in June, said he acted to stop courts still full of judges appointed by ousted strongman Hosni Mubarak from derailing a constitution meant to complete a political transition in Egypt, long an ally of Washington and signatory to a 1979 peace deal with Israel.

Rival groups skirmished earlier outside the presidential palace on Wednesday. Islamist supporters of Mursi tore down tents erected by leftist foes, who had begun a sit-in there.

"They hit us and destroyed our tents. Are you happy, Mursi? Aren't we Egyptians too?" asked protester Haitham Ahmed.

Mohamed Mohy, a pro-Mursi demonstrator who was filming the scene, said: "We are here to support our president and his decisions and save our country from traitors and agents."

Facing the gravest crisis of his six-month-old tenure, Mursi has shown no sign of buckling, confident that Islamists can win the referendum and a parliamentary election to follow.

Many Egyptians yearn for an end to political upheaval that has scared off investors and tourists, damaging the economy.

Mekky said street mobilization by both sides posed a "real danger" to Egypt. "If we do not put a stop to this phenomenon right away ... where are we headed? We must calm down."

U.S. Secretary of State Hillary Clinton weighed into Egypt's political debate, saying dialogue was urgently needed on the new constitution, which should "respect the rights of all citizens".

Clinton and Mursi worked together last month to broker a truce between Israel and Hamas Islamists in the Gaza Strip.

"It needs to be a two-way dialogue ... among Egyptians themselves about the constitutional process and the substance of the constitution," Clinton told a news conference in Brussels.

Washington is worried about rising Islamist power in Egypt, a staunch U.S. security partner under Mubarak.

"LAST WARNING"

The Muslim Brotherhood had summoned supporters to an open-ended demonstration at the presidential palace, a day after about 10,000 opposition protesters had encircled it for what organizers dubbed a "last warning" to Mursi.

"The people want the downfall of the regime," they chanted, roaring the signature slogan of last year's anti-Mubarak revolt.

Officials said 35 protesters and 40 police were wounded.

The "last warning" may turn out to be one of the last gasps for a disparate opposition that has little chance of scuttling next week's vote on a constitution drawn up over six months and swiftly approved by an Islamist-dominated assembly.

State institutions, with the partial exception of the judiciary, have mostly fallen in behind Mursi.

The army, the muscle behind all previous Egyptian presidents in the republic's six-decade history, has gone back to barracks, having apparently lost its appetite to intervene in politics.

In a bold move, Mursi sacked Mohamed Hussein Tantawi, the Mubarak-era army commander and defense minister, in August and removed the sweeping powers that the military council, which took over after Mubarak fell, had grabbed two months earlier.

The liberals, leftists, Christians, ex-Mubarak followers and others opposed to Mursi have yet to generate a mass movement or a grassroots political base to challenge the Brotherhood.

Investors have seized on hopes that Egypt's turbulent transition, which has buffeted the economy for two years, may soon head for calmer waters, sending stocks 1.6 percent higher after a 3.5 percent rally on Tuesday.

Egypt has turned to the IMF for a $4.8 billion loan to help it out of a crisis that has depleted its foreign currency reserves. The government said on Wednesday the process was on track and its request would go to the IMF board as expected.

The board is due to review the facility on December 19.

(Additional reporting by Tom Perry, Tamim Elyan and Edmund Blair; Writing by Alistair Lyon; Editing by Jon Hemming)

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Britain faces more austerity pain

LONDON: Finance minister George Osborne on Wednesday warned Britons that they faced an extra year of austerity measures and insisted that reversing his belt-tightening measures now would be a "disaster".

Chancellor of the Exchequer Osborne said Britain would face spending cuts and tax hikes until 2018 -- after the coalition government led by Prime Minister David Cameron had already previously extended the programme by two years to 2017.

The bleak announcement in a budget update, coming alongside news that the government is slashing its outlook for economic growth, is likely to heap further pressure on the administration mid-way through a five-year term in power.

Addressing parliament on Wednesday, Osborne also admitted that the government would fail to meet its official target for reducing public debt as a proportion of British economic output by 2015-16.

"It is taking time but the British economy is healing after the biggest financial crash in our lifetime," Osborne insisted in his Autumn Statement.

Confirming that he was prolonging the government's austerity programme to 2017-18 -- beyond Britain's next general election due in 2015 -- Osborne said: "We are making progress. It's a hard road, but we are getting there. Britain is on the right track and turning back now would be a disaster."

Explaining why he was extending cuts in public spending and hiking taxes again, Osborne said the British economy faced "deep-seated problems at home and abroad."

Britain's Conservative-Liberal Democrat coalition government, which came to power in 2010, has imposed a series of painful austerity measures to slash a record deficit that was inherited from the previous Labour administration.

Cameron and Osborne have overseen the loss of tens of thousands of public-sector jobs, slashing workforces in the military, health service and various state departments.

The government has also faced huge demonstrations from disgruntled workers ans students in response to the cuts.

The main opposition Labour party said Osborne's economic plans were "in tatters".

The party's finance spokesman Ed Balls said: "Today, after two and a half years, we can see, people can feel in the country, the true scale of this government's economic failure.

"Our economy this year is contracting, (and) the chancellor has confirmed government borrowing is revised up this year, next year and every year."

Britain meanwhile slashed its economic outlook, forecasting the economy would shrink by 0.1 percent this year and then return to growth in 2013, according to figures published alongside the budget update.

The new forecast, issued by the Office for Budget Responsibility (OBR) fiscal watchdog, showed a sharp drop on the previous 2012 growth estimate of 0.8 percent that was given in Osborne's annual budget in March.

The OBR added that British gross domestic product was forecast to grow by 1.2 percent in 2013. That compared with previous guidance for greater expansion of 2.0 percent.

Osborne also revealed that debt as a proportion of gross domestic product (GDP) was now expected to fall in 2016-17 -- a year later than the government's previous forecast.

Recent official data showed that Britain had escaped from recession in the third quarter of this year, with its economy growing by a robust 1.0 percent.

However the return to growth was owing to one-off factors such as the London Olympics and rebounding activity after public holidays in the second quarter.

"The message... is that we are making progress," Osborne said.

Osborne had some positive news for motorists and businesses, postponing a hike in fuel tax due to have come into force in January and saying he would cut corporation tax by one percentage point to 21 percent in 2014.

The coalition has blamed the recession largely on the debt crisis in the neighbouring eurozone, but the main opposition Labour party claims that the downturn was mainly owing to the hefty cuts in state spending.

On the eve of the budget update, Osborne pledged to invest £5.0 billion (6 billion euros, $8 billion) in schools, transport and science over the next two fiscal years, with the cash sourced from a new raft of spending cuts across most civil service departments.

And on Monday, Osborne launched a campaign against "tax dodgers" and "cowboy advisers" to claw back £2.0 billion a year, as lawmakers alleged that multinationals such as Starbucks and Google are avoiding huge tax bills.

-AFP/ac

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Deoband fatwa describes perfume with alcohol, tattoo and women receptionists as un-Islamic

LUCKNOW: Two fatwas issued by leading Islamic seminary Darul Uloom Deoband in Muzaffarnagar in Uttar Pradesh in last two days have left many in Muslim community perplexed in the state. While a fatwa as described working of women as receptionists against sharia law, another termed tattoo and use of perfume with alcohol content as un-Islamic.

A Pakistan-based company had asked whether it could appoint a Muslim woman as a receptionist. In reply, the seminary said that Muslim women working in offices as receptionist is un-Islamic because Muslim women are not allowed to appear before men without veil. Mufti Zulfikar Ali, Muslim cleric and president of UP Imam organisation, also said that the Muslim women can work in institutions after wearing the veil but the work of a receptionist is to constantly interact with people, which should not be practised.

In the second case a youth in his query had asked that is tattoo valid in shaira law?. He said that one of his friends who has a tattoo on his arm and it would cost him a huge sum if he goes for a surgery to remove it. In such a condition what should be done, he said in his query. The seminary, in its reply, said that prayers of those, who have tattoo on their bodies or have sprayed perfume with alcohol in it is not valid. Another Islamic seminary, Bareli Markaz has backed the Deoband's decree saying that the tattoo on body is against the tenets of Islam.

Earlier, Darul Uloom Deoband had issued a fatwa against manufacturing and selling of firecrackers. It stated that manufacturing and selling of firecrackers is against Sharia law and bursting of crackers is misuse of money, hence it should be avoided. Another fatwa recently had described donation of blood and body parts was against the tenets of Islam.

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Longer tamoxifen use cuts breast cancer deaths

Breast cancer patients taking the drug tamoxifen can cut their chances of having the disease come back or kill them if they stay on the pills for 10 years instead of five years as doctors recommend now, a major study finds.

The results could change treatment, especially for younger women. The findings are a surprise because earlier research suggested that taking the hormone-blocking drug for longer than five years didn't help and might even be harmful.

In the new study, researchers found that women who took tamoxifen for 10 years lowered their risk of a recurrence by 25 percent and of dying of breast cancer by 29 percent compared to those who took the pills for just five years.

In absolute terms, continuing on tamoxifen kept three additional women out of every 100 from dying of breast cancer within five to 14 years from when their disease was diagnosed. When added to the benefit from the first five years of use, a decade of tamoxifen can cut breast cancer mortality in half during the second decade after diagnosis, researchers estimate.

Some women balk at taking a preventive drug for so long, but for those at high risk of a recurrence, "this will be a convincer that they should continue," said Dr. Peter Ravdin, director of the breast cancer program at the UT Health Science Center in San Antonio.

He reviewed results of the study, which was being presented Wednesday at a breast cancer conference in San Antonio and published by the British medical journal Lancet.

About 50,000 of the roughly 230,000 new cases of breast cancer in the United States each year occur in women before menopause. Most breast cancers are fueled by estrogen, and hormone blockers are known to cut the risk of recurrence in such cases.

Tamoxifen long was the top choice, but newer drugs called aromatase inhibitors — sold as Arimidex, Femara, Aromasin and in generic form — do the job with less risk of causing uterine cancer and other problems.

But the newer drugs don't work well before menopause. Even some women past menopause choose tamoxifen over the newer drugs, which cost more and have different side effects such as joint pain, bone loss and sexual problems.

The new study aimed to see whether over a very long time, longer treatment with tamoxifen could help.

Dr. Christina Davies of the University of Oxford in England and other researchers assigned 6,846 women who already had taken tamoxifen for five years to either stay on it or take dummy pills for another five years.

Researchers saw little difference in the groups five to nine years after diagnosis. But beyond that time, 15 percent of women who had stopped taking tamoxifen after five years had died of breast cancer versus 12 percent of those who took it for 10 years. Cancer had returned in 25 percent of women on the shorter treatment versus 21 percent of those treated longer.

Tamoxifen had some troubling side effects: Longer use nearly doubled the risk of endometrial cancer. But it rarely proved fatal, and there was no increased risk among premenopausal women in the study — the very group tamoxifen helps most.

"Overall the benefits of extended tamoxifen seemed to outweigh the risks substantially," Dr. Trevor Powles of the Cancer Centre London wrote in an editorial published with the study.

The study was sponsored by cancer research organizations in Britain and Europe, the United States Army, and AstraZeneca PLC, which makes Nolvadex, a brand of tamoxifen, which also is sold as a generic for 10 to 50 cents a day. Brand-name versions of the newer hormone blockers, aromatase inhibitors, are $300 or more per month, but generics are available for much less.

The results pose a quandary for breast cancer patients past menopause and those who become menopausal because of their treatment — the vast majority of cases. Previous studies found that starting on one of the newer hormone blockers led to fewer relapses than initial treatment with tamoxifen did.

Another study found that switching to one of the new drugs after five years of tamoxifen cut the risk of breast cancer recurrence nearly in half — more than what was seen in the new study of 10 years of tamoxifen.

"For postmenopausal women, the data still remain much stronger at this point for a switch to an aromatase inhibitor," said that study's leader, Dr. Paul Goss of Massachusetts General Hospital. He has been a paid speaker for a company that makes one of those drugs.

Women in his study have not been followed long enough to see whether switching cuts deaths from breast cancer, as 10 years of tamoxifen did. Results are expected in about a year.

The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center.

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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