Closing Tax Loopholes Not Enough to Avert 'Cliff'?













Closing "corporate tax loopholes" sure sounds good to the average, non-corporate American -- so good, in fact, that politicians talk about it all the time.


House Speaker John Boehner's fiscal-cliff proposal purports to raise $1.6 trillion in revenue by "clos[ing] special-interest loopholes and deductions while lowering rates."


The White House, meanwhile, has complained that Boehner hasn't offered specific loopholes to cut.


On the other side of the aisle, House Democrats have repeatedly offered up "closing overseas tax loopholes" as a means to pay for spending bills -- a plan Republicans routinely reject. In the last two and a half years, President Obama has often been heard griping about writeoffs for corporate jets.


For both Republicans and Democrats, "corporate tax loopholes" are an old saw. But, like most things in politics, raising revenue from "loopholes" gets a bit stickier when the specifics are hashed out.


A misconception about tax "loopholes," some experts say, is that they're loopholes -- gaps in the tax law that corporations have exploited against the law's intent.






Carolyn Kaster/AP Photo; Pablo Martinez Monsivais/AP Photo















Fiscal Cliff Battle: President Obama vs. Speaker John Boehner Watch Video





"Most of these proposals were not 'loopholes,' these were incentives," said Eric Toder, co-director of the left-leaning Tax Policy Center.


For example, take the research-and-development tax credit. During the campaign, both Obama and Mitt Romney suggested making it permanent.


"One wouldn't call the research credit a loophole," Toder said.


Cashing in by closing the biggest "loopholes" could be a politically fraught endeavor. To generate meaningful revenue, House Republicans would have to sign off on measures that raised it from taxing the overseas profits of multinational corporations, from ending immediate writeoffs of equipment purchases, or from ending a credit for domestic manufacturing.


When the Joint Committee on Taxation scored some of these provisions, as part of a tax-reform bill pushed by Democratic Sen. Ron Wyden and then-GOP-senator Judd Gregg, it found the government could save significantly:


Savings Over 10 Years: 2011-2021


Taxing Overseas Profits of Multinational Corps: $582.7 billion. In other words, the "overseas tax loophole" Democrats are fond of trashing. While most countries with large economies tax only profits made at home, the U.S. code taxes all income everywhere. To offset the different, U.S. multinational corporations receive credits to prevent double taxing. They also can defer paying any tax on foreign income, until they transfer the money back to the United States.


Taxing that profit could generate significant revenue. But this could be controversial, and large corporations would fight it. A senior aide to one business lobbying group said ending foreign-income deferral would amount to double-taxing U.S. companies and put them at a disadvantage to foreign competitors; one supporter of ending deferral suggested U.S. companies have been able to hide profits overseas, avoiding taxes altogether.






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Insight: Congo army debacle at Goma raises specter of betrayal


GOMA, Democratic Republic of Congo (Reuters) - When Congo's government army retreated in panic from the eastern city of Goma last month, many observers blamed the poor morale and leadership, ill discipline and corruption that have sapped its fighting capacity for years.


In the hours before Goma fell to M23 rebels on November 20, drunk and terrified Congolese soldiers roamed the streets or huddled in doorways before melting away, witnesses said.


M23's 11-day occupation of the city was one of the worst battlefield defeats for Democratic Republic of Congo's armed forces (FARDC), which at 150,000-strong are among the largest in Africa. They are also backed by 17,000 U.N. peacekeepers.


As recriminations swirl over the Goma defeat, which forced President Joseph Kabila to accept talks with a group he says is a creation of Rwanda, allegations have emerged that betrayal in the army's ranks may have precipitated the rout.


The government has launched an investigation but says it has reached no conclusions; little evidence has come to light beyond anonymous allegations against officers from subordinates who accuse their commanders of selling them out. The general blamed by some denies any such deals with rebels he once commanded.


But the scandal alone shows how deep suspicion runs within an army that has absorbed successive waves of former enemies as a series of civil wars has ended.


One senior FARDC officer who fought the M23 uprising said he believed Goma was lost because of what he called sabotage of the army's fighting capability.


"All of our intelligence was given to M23," the officer alleged, saying that throughout the fighting "there was intense communications with them" from within the government ranks.


Speaking on condition of anonymity because army regulations forbid him from commenting publicly, he said he was convinced former land forces commander, Major General Gabriel Amisi had been in contact with the rebel side. He said he had served alongside the general in the field.


A member of Amisi's military entourage said the general "rejects categorically" allegations of betrayal: "He could never do that, he wants nothing from the rebels," the aide said. "He only just escaped with his life, five of his own men died."


Amisi himself, dressed in colorful robes and sandals, greeted a Reuters reporter at his guarded residence in Kinshasa on Friday. He declined to discuss the allegations. The aide said the general had been ordered by President Kabila not to talk to media about the subject.


An army spokesman, Colonel Olivier Hamuli, said "many factors" led to the debacle, which is being investigated: "As to whether there was treason by General Amisi, I can't say yes or no to that."


Amisi, widely known as "Tango Four" from his old radio call sign, was suspended just days after the rebel capture of the city following a report by U.N. experts alleging he sold weapons to armed groups accused of killing civilians.


TANGLED RELATIONSHIPS


Amisi's ties to a previous, Rwandan-backed eastern rebellion during Congo's 1998-2003 war highlight the confused integration process over the last decade that has seen the FARDC absorb tens of thousands of former rebels and militia fighters.


M23 itself is formed largely of men who were rebels, then were brought into the army and then mutinied again, accusing the Kabila government of breaking a deal signed on March 23, 2009.


Congo's army is widely seen as a symptom of the vast central African nation's dysfunctional state, weakened by years of mismanagement, graft and conflict.


This has produced a security vacuum, particularly in the volatile eastern borderlands, a tinderbox of ethnic conflicts where regional powers and local elites compete for political influence and also for resources of gold, tin and coltan, the latter used in the making of mobile phones.


FARDC spokesman Hamuli said the defeat at Goma was "understandable" because "we were fighting the Rwandan army".


Experts tasked by the U.N. Security Council have issued reports alleging Rwanda, Congo's small but militarily powerful eastern neighbor, created, trained and equipped M23 and directly supported its capture of Goma.


Rwanda has repeatedly dismissed this as "fiction".


M23 fighters withdrew from Goma on December 1 under a deal mediated by regional states. But there is little confidence inside or outside Congo that the city can resist a fresh M23 assault.


"WE WERE ABANDONED"


Reuters journalists who covered the fighting around Goma in November noted the contrast between M23's well-armed fighters, with crisp uniforms and practical rubber gumboots, and the often rag-tag government soldiers, some shod only in flip flops.


M23 rebels showed reporters the abandoned FARDC barracks in Goma - ramshackle buildings littered with fly-infested garbage, where tall marijuana plants grew among military maize plots.


"You see how the Congolese army lived. What kind of army is this?" Amani Kabasha, M23's deputy spokesman, said.


Nevertheless, observers on the ground still struggle to fully explain the abruptness of the army's collapse at Goma.


The FARDC's flight led to MONUSCO peacekeepers choosing not to go on resisting M23's advance. U.N. chiefs rebuffed intense criticism, saying their men could not back an army that was no longer present on the ground.


"They put up a formidable fight the first day, then for reasons we don't understand, they just stopped fighting, turned their backs and left," said Hiroute Guebre Sellassie, who heads the local office of Congo's U.N. peacekeeping force, MONUSCO.


Congo government spokesman Lambert Mende said the inquiry would probe allegations of racketeering and betrayal among the commanders: "Questions of loyalty have regularly been asked, not just about Amisi," he said. "But there has to be proof."


The FARDC officer who denounced Amisi's role highlighted one incident early in the battle for Goma when he says the general ordered his men to stop fighting after inflicting heavy losses on M23 at Kibumba, 30 km (20 miles) north of the city.


"Suddenly we received the order to stop," the officer said.


"It didn't make sense; it just gave them the chance to regroup and pull together a force that went on to take Goma."


Rejecting the allegations on Amisi's behalf, the member of his entourage in Kinshasa blamed the difficulties of fighting a rebel force that, he alleged, was being supported from beyond the border with Rwanda that runs through Goma's suburbs.


"We didn't have the orders to attack Rwanda, even though we were being fired on from there," the aide to Amisi said.


"You saw the morale of our men - everyone was fleeing pell mell. That's when we realized we couldn't hold Goma."


Despite Rwanda's denials of any backing for M23, a Reuters reporter in Goma during the rebel occupation came across several fighters who did not speak local languages, including one who said: "I am Rwandan, a soldier, we're here to help M23.


"There are lots of us and more are coming every day."


REBELS IN THE RANKS


Amisi is a former commanding officer of many of the M23 fighters. He fought with them in an earlier, Rwandan-backed rebellion as a member of the RCD (Congolese Rally for Democracy) during Congo's 1998-2003 civil war that sucked in neighboring states and in which several million people died.


Independent analysts say he has been under suspicion before.


"This is not the first time Amisi has been accused in undermining the army. There is deep suspicion among officers that he has been a fifth columnist for Rwanda," said Jason Stearns, a Congo expert and author who has written a study of M23 for the Rift Valley Institute's Usalama project.


The integration of rebel and militia fighters into the Congolese army was a major plank of the peace accords that ended the last Congo war. This has meant rebel groups often maintaining command structures - and loyalties - once inside the FARDC. That is the case with M23, which includes Tutsi commanders and fighters who participated in a 2004-2009 rebellion led by Tutsi general and warlord Laurent Nkunda.


M23 commanders like Sultani Makenga and Bosco Ntaganda, who is sought for war crimes by the International Criminal Court, were given high ranks in the army after their re-integration following Nkunda's rebellion. They have now rebelled again.


"While desertion is considered the gravest form of indiscipline in other armies, in the DRC, defected units and commanders have instead regularly been welcomed back into the army - often even rewarded with better opportunities when reintegrated," said Maria Eriksson Baaz, a researcher at the Sweden-based Nordic Africa Institute.


She said this was "very demoralizing" for the troops.


PREDATORS RATHER THAN PROTECTORS


Critics say Kabila has little incentive to improve the national armed forces because a strong military could eventually turn against him.


In April, a report by international and Congolese NGOs said the failure to reform Congo's large and ill-disciplined army had kept much of the civilian population in poverty and insecurity despite billions of dollars of foreign aid for the country.


As a result, more than $14 billion of international aid over 5 years had ended up having "little impact on the average Congolese citizen", the report noted. It faulted international powers for not pushing the government to reform the army.


A little over one percent, or $85 million, of official development aid for the Congo was spent on direct security sector reform between 2006 and 2011, according to the report.


Without reform, Congolese soldiers often act more like predators than protectors and whatever the government probe into allegations of treachery may find, people around Goma remain fearful a cycle of revolt and violence will continue.


Residents in the nearby town of Minova spoke of a three-day rampage of drinking, shooting, stealing and rape by thousands of retreating government troops last month. One local man, Mbogos Simwerayi, recalled: "Everyone suffered with the army here."


The U.N. said on Friday investigations showed FARDC soldiers raped and pillaged in Minova, but it added M23 insurgents also killed civilians and looted when they held Goma.


(Editing by Pascal Fletcher and Janet McBride)



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Morsi gives Egypt army police powers before referendum






CAIRO: President Mohamed Morsi has ordered Egypt's army to take on police powers from Monday -- including the right to arrest civilians -- in the run-up to a divisive constitutional referendum that has triggered mass street protests.

The decree, published in the government gazette, takes effect on the eve of mass rival protests on the referendum and follows street clashes that have left seven people dead and hundreds injured.

It orders the military to fully cooperate with police "to preserve security and protect vital state institutions for a temporary period, up to the announce of the results from the referendum," according to a copy obtained by AFP.

The military, which ruled Egypt between the ouster of former president Hosni Mubarak in February 2011 and the election of Morsi in June this year, has sought to remain neutral in the political crisis.

It has warned it "will not allow" the situation to deteriorate, and urged both sides to dialogue.

Army tanks and troops have since Thursday deployed around Morsi's presidential palace but they have not confronted thousands of protesters who have gathered there every night.

The opposition, made up of secular, liberal, leftwing and Christian groups, has said it will escalate its protests to scupper the referendum.

It views the draft constitution, largely drafted by Morsi's Islamist allies, as undermining human rights, the rights of women, religious minorities, and curtailing the independence of the judiciary.

Morsi, though, has defiantly pushed on with the new charter, seeing it as necessary to secure democratic reform in the wake of Mubarak's 30-year autocratic rule.

Late Sunday, the main opposition group, the National Salvation Front, called for huge protests in Cairo to reject the December 15 referendum.

It dismissed a key concession Morsi made rescinding another decree giving himself near-absolute powers as too late, saying he had already used it to railroad through the draft constitution.

"We do not recognise the draft constitution because it does not represent the Egyptian people," National Salvation Front spokesman Sameh Ashour told a news conference.

Going ahead with the referendum "in this explosive situation with the threat of the Brothers' militias amounts to the regime abandoning its responsibilities," he said.

In recent days, the protesters have hardened their slogans, going beyond criticism of the decree and the referendum to demand Morsi's ouster.

The Muslim Brotherhood, from which Morsi hails, shot back that it and allied Islamist movements would counter with their own big rallies in the capital in support of the referendum.

"We are calling for a demonstration Tuesday, under the slogan 'Yes to legitimacy'," the Brotherhood's spokesman, Mahmud Ghozlan, told AFP.

Morsi's camp argues it is up to the people to accept or reject the draft constitution.

If the charter is rejected, Morsi has promised to have a new one drawn up by 100 officials chosen directly by the public rather than appointed by the Islamist-dominated parliament.

But analysts said still-strong public support for Morsi, and the Brotherhood's proven ability to mobilise the grassroots level, would likely help the draft constitution be adopted.

"The Muslim Brotherhood believes that it has majority support so it can win the constitutional referendum," said Eric Trager, analyst at the Washington Institute for Near East Policy.

If that happens, he warned, it would "set up the country for prolonged instability".

- AFP/ir



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Cauvery water dispute: SC not to interfere with Cauvery monitoring committee award

NEW DELHI: The Supreme Court today made it clear that it will not interfere with the Cauvery monitoring committee's order directing Karnataka to provide Tamil Nadu with 12 TMC of Cauvery water during December despite both warring states expressing dissatisfaction over the award.

A bench of justices D K Jain and Madan B Lokur turned down the plea of Tamil Nadu which contended that the report is factually wrong and the court should interfere in the matter to direct Karnataka to release more water.

"They (members of CMC) are experts and we should not comment on it. If you are not happy with the report then do what you want to do for getting remedy," the bench said.

"It seems that both sides are not satisfied by the direction issued by the CMC. We leave it for the parties to work out in accordance with law," the bench said in its order.

The bench posted the matter for further hearing on January 4 after noting that the order of the Committee is for the month of December.

The CMC, which met on the direction of the apex court, had on December 7 asked asked Karnataka to provide Tamil Nadu with 12 TMC of Cauvery water during December.

Kerala and Pudducherry are the other two member states of CMC which is headed by Union secretary, water resources.

"It would seem equitable if Karnataka should manage water in such a way that Tamil Nadu receives 12 TMC feet during the month of December, 2012," the committee had said in its interim award.

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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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Mexican-American Star Dead in Plane Crash: Father













UPDATED: Multiple reports, including one from Gerardo Ruiz Esparza, Mexico's Secretary of Communications and Transports, confirm that the remains of the private jet carrying Jenni Rivera have been found, with no survivors. Rivera, 43, was one of seven passengers.


Rivera's father, Pedro, confirmed the news of his daughter's passing to reporters stationed outside of his home in Lakewood, Calif., where several family members are gathered, including Rivera's mother Rosa and her eldest daughter Chiquis, who has still not made any statements. Rivera's father reportedly received the news via telephone from his son, singer Lupillo Rivera, who was in Mexico at the time of the jet's disappearance. "This is the first tragedy of this kind that we suffer as a family," Rivera's father told reporters on Sunday evening. "I hope people remember her as she was - someone who was straight with the world."


Celebrity reactions on Twitter have poured in since news of the disappearance of Rivera's jet, including Paulina Rubio (who was set to co-host the Mexican edition of The Voice with Rivera) William Levy, Joan Sebastian, Ricky Martin, and others.


See also: Jenni Rivera Immortalized in new Track 'La Misma Gran Señora






AP Photo/Lynne Sladky, file











Andy Williams Dead: 'Moon River' Singer Remembered Watch Video









Mexican officials have confirmed the disappearance of a private jet carrying regional Mexican music superstar Jenni Rivera that took off from the northern Mexican city of Monterrey at 3:15 a.m. local time on Sunday and fell off the radar 10 minutes (or 62 miles) after take-off.


The Learjet 25 jet, which dates back to 1969, is believed to have been carrying seven people – five passengers and two pilots. It was headed for Toluca International Aiport, located outside of Mexico City, where it was meant to arrive at 4:40 a.m. An official search for the jet was initiated at sunrise.


Rivera's publicist Arturo Rivera and her make-up artist Jacob Yebale are believed to have been on that flight. Their most recent tweets are of photos from Rivera's concert in Monterrey on Saturday night.


The Mexican American singer's most recent tweet is a re-tweet of what appears to be a fan's message.


Rivera was due in Toluca this evening for the taping of a Mexican TV show, La Voz. Televisa has canceled tonight's show given Rivera's disappearance.


Known as La Diva de la Banda and beloved by fans on both sides of the border, Rivera, 43, has had a groundbreaking career in regional Mexican music, selling some 15 million records. Among her many feats in a male-dominated genre, she made history in September 2011 when she sold out the Staples Center in Los Angeles, the first female regional Mexican artist to do so. Her reality show on mun2, I Love Jenni, is one of the network's highest rated shows. Rivera made her film debut at the 2012 Sundance Film Festival in the indie family drama Filly Brown, due in theaters in January 2013.


See Also: 'Filly Brown Gives Jenni Rivera a Chance to Grow and Gina Rodriguez a Chance to Shine


The Long Beach, Calif.-born singer's personal life has often called for as much attention as her career. A mother of five, Rivera had filed for divorce from baseball player Esteban Loaiza in October after two years of marriage, citing "irreconcilable differences." Soon after, rumors of an affair between Loaiza and Rivera's own daughter Chiquis surfaced, which Chiquis addressed on Twitter in October by saying, "I would NEVER do that, Ever! That's a horrible accusation."



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Egypt president scraps decree that sparked protests


CAIRO (Reuters) - Egyptian President Mohamed Mursi has canceled a decree that gave him sweeping powers and sparked violent unrest but did not delay this month's referendum on a new constitution that was a major demand of his opponents.


Islamist supporters of Mursi have insisted the referendum should go ahead on time on December 15, saying it is needed to complete a democratic transition still incomplete after autocrat Hosni Mubarak's overthrow 22 months ago.


Ahmed Said, a leading member of the main opposition National Salvation Front said the decision to press ahead with the referendum was "shocking" and would deepen a political crisis.


"It is making things a lot worse," Said, head of the liberal Free Egyptians Party, told Reuters. "I cannot imagine that after all this they want to pass a constitution that does not represent all Egyptians." He said the Front would meet later on Sunday to give a formal response.


The announcement that Mursi had scrapped his November 22 decree followed talks on Saturday that ran into the night at his presidential palace. Billed as a "national dialogue", the meeting was boycotted by his main rivals and had little credibility among protesters in the most populous Arab nation.


The April 6 movement, which helped galvanize street protests against Mubarak, said in a statement about the outcome of Saturday's talks: "What happened is manipulation and a continuation of deception in the name of law and legitimacy."


The constitution was fast-tracked through an assembly led by Mursi's Muslim Brotherhood and other Islamists. Liberals and others walked out, saying their voices were not being heard.


"A constitution without consensus cannot go to a referendum," said Hermes Fawzi, 28, a protester camped with dozens of others outside the presidential palace. "It's not logical that just one part of society makes the constitution."


Nearby were tanks and military vehicles of the Republican Guards positioned there to protect the palace after clashes in the past week between Islamists and their rivals killed seven people and injured about 350.


The military, which led Egypt through a turbulent interim period after Mubarak fell, stepped into the crisis on Saturday to tell feuding factions that dialogue was essential to avoid "catastrophe." But a military source said this was not a prelude to the army retaking control of Egypt or the streets.


DEEP RIFTS


After Saturday's talks, Mursi issued a new decree in which the first article "cancels the constitutional declaration" announced on November 22, the spokesman for the dialogue, Mohamed Selim al-Awa, told a news conference held around midnight.


But he said the constitutional referendum would go ahead anyway next Saturday, adding that although those at the meeting discussed a postponement, there were legal obstacles to a delay.


The political turmoil has exposed deep rifts in the nation of 83 million between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptian just crave stability and economic recovery.


Islamists and more liberal-minded opponents have each drawn tens of thousands of supporters to the streets in rival rallies since the November 22 decree. Mursi's opponents have chanted for his downfall while Islamists have said there is a conspiracy to bring down the nation's first freely elected president.


The National Salvation Front, whose members include Nobel Peace Prize laureate Mohamed ElBaradei and former foreign minister Amr Moussa, stayed away from Saturday's talks.


Ahead of stating its formal position, Front spokesman Hussein Abdel Ghani said: "My first personal impression is that it is a limited and insufficient step. We repeatedly said that among our top demands is for the referendum to be delayed."


Despite such opposition, Mursi is gambling he can push through the constitution via referendum with the backing of loyal Islamists and many Egyptians who are desperate to move on. Only after a constitution is in place can an election be held for a new parliament, expected about two months later.


The Islamist-led lower house of parliament elected this year was dissolved after a few months by a court order.


DISTRUST


The new decree removed some parts of the old decree that angered the opposition, including an article that had given Mursi broad powers to confront threats to the revolution or the nation, wording opponents said gave him arbitrary authority.


Another article in the old decree had put beyond legal challenge any decision taken by the president until a new parliament was elected, reflecting Mursi's distrust of a judiciary largely unreformed from Mubarak's era.


That article was not repeated, but the new decree said "constitutional declarations including this declaration" were beyond judicial review.


The new decree outlined steps for setting up an assembly to draft a new constitution should the current draft be rejected.


Further, the opposition was invited to offer suggested changes to the new constitution, echoing an earlier initiative by Mursi's team for amendments to be discussed and agreed on by political factions and put to the new parliament to approve.


Amid the violence and political bickering, the army has cast itself primarily as the neutral guarantor of the nation.


"The armed forces affirm that dialogue is the best and only way to reach consensus," the military 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 army might be pushing the opposition to join dialogue and for 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. "They realize that interfering again in a situation of civil combat will squeeze them between two rocks," he added.


But the military seemed poised to take a more active role in security arrangements for the approaching 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 newspaper al-Ahram, an expanded military security role might extend to the next parliamentary election and, at the president's discretion, even beyond that.


(Additional reporting by Tamim Elyan; Writing by Edmund Blair; Editing by Mark Heinrich)



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Residents urged to keep common areas clutter-free






SINGAPORE: Pasir Ris West constituency organised Vertical Challenge on Sunday morning to demonstrate difficulties which rescue workers face when navigating past cluttered areas during emergencies.

The challenge was coordinated by the Singapore Civil Defence Force. Seven participating teams had to evacuate a casualty and manoeuvre the stretcher along a narrow corridor past various obstacles.

Deputy Prime Minister Teo Chee Hean encouraged residents to cooperate in keeping their corridors and common areas free from clutter.

"So very often when I visit the residents, we say (the residents) have to keep the corridors clear. They said 'No problem, I can walk through, my neighbours can walk through'," he said.

"Then I said, what if someone has a wheelchair? They said 'if somebody has a wheelchair, then I will make sure I make my corridors clear'. I think our residents also need to understand anybody can need an ambulance at any time."

Clutter at common areas such as corridors and lift lobbies, also pose fire hazards, hampering fire fighting operations.

- CNA/xq



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India misguided, paranoid over China: Guha

Shreya Roy Chowdhury, TNN Dec 8, 2012, 06.12AM IST

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.


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


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