Afzal Guru's life should become extinct, ruled SC

NEW DELHI: "The incident, which resulted in heavy casualties, had shaken the entire nation and the collective conscience of the society will only be satisfied if the capital punishment is awarded to the offender," the Supreme Court had said while upholding the death sentence of Afzal Guru.

Holding Afzal guilty of the conspiracy culminating in the attack on Parliament House, the apex court in its August 4, 2005, judgment added: "The conspirator, even though he may not have indulged in the actual criminal operations to execute the conspiracy, becomes liable for the punishment prescribed under Section 302 IPC (Indian Penal Code)."

Either death sentence or imprisonment for life is the punishment prescribed under Section 302 of the IPC.

The judgment delivered by Justice P Venkatarama Reddy and Justice PP Naolekar had also said that Afzal's case "has no parallel in the history of Indian Republic," and that it "presents us in crystal clear terms, a spectacle of rarest of rare cases".

"The very idea of attacking and overpowering a sovereign democratic institution by using powerful arms and explosives and imperilling the safety of a multitude of people's representatives, constitutional functionaries and officials of government of India and engaging into a combat with security forces is a terrorist act of gravest severity," it added.

The court said the "gravity of the crime conceived by the conspirators" to cause enormous casualties and dislocate the functioning of the government "cannot be described in words".

"The challenge to the unity, integrity and sovereignty of India by these acts of terrorists and conspirators, can only be compensated by giving the maximum punishment to the person who is proved to be the conspirator in this treacherous act," it added.

"The appellant (Afzal Guru), who is a surrendered militant and who was bent upon repeating the acts of treason against the nation, is a menace to the society and his life should become extinct. Accordingly, we uphold the death sentence," the apex court ruled.

"In the instant case, there can be no doubt that the most appropriate punishment is death sentence. That is what has been awarded by the trial court and the high court," the judgment said.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

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Online:

CDC: http://www.cdc.gov/flu/

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Door-to-Door Search for Suspected Cop Killer

More than 100 police officers were going door-to-door and searching for new tracks in the snow in hopes of catching suspected cop-killer Christopher Dorner overnight in Big Bear Lake, Calif., before he strikes again, as laid out in his rambling online manifesto.

Police late Thursday night alerted the residents near Big Bear Lake that Dorner was still on the loose after finding his truck burning earlier in the day.

San Bernardino County Sheriff's spokeswoman Cindy Bachman said authorities can't say for certain that he's not in the area. More than half of the 400 homes in the area had been searched by police as of late Thursday. Police traveled in two-man teams.

Bachman urged people in the area not to answer the door, unless they know the person or see a law enforcement officer in uniform.

After discovering Dorner's burning truck near a Bear Mountain ski resort, police discovered tracks in the snow leading away from the vehicle. The truck has been taken to the San Bernardino County Sheriffs' crime lab.

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Bachman would not comment on Dorner's motive for leaving the car or its contents, citing the ongoing investigation. Police are not aware of Dorner's having any ties to others in the area.

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She added that the search in the area would continue as long as the weather cooperates. About three choppers were being used overnight, but weather conditions were deteriorating, according to Bachman.

"He could be anywhere at this point," said San Bernardino County Sheriff John McMahon, who is expected to address the media later this morning.

Dorner, 33, a former Los Angeles police officer and Navy reservist, is suspected of killing one police officer and injured two others Thursday morning in Riverside, Calif. He was also accused of killing two civilians Sunday. And he allegedly released an angry "manifesto" airing grievances against police and warning of coming violence toward cops.

In the manifesto Dorner published online, he threatened at least 12 people by name, along with their families.
"Your lack of ethics and conspiring to wrong a just individual are over. Suppressing the truth will leave to deadly consequences for you and your family," Dorner wrote in his manifesto.

One passage from the manifesto read, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," it read. "I'm terminating yours."

Hours after the extensive manhunt dragged police to Big Bear Lake, CNN's Anderson Cooper said Dorner had sent him a package at his New York office that arrived Feb. 1, although Cooper said he never knew about the package until Thursday. It contained a DVD of court testimony, with a Post-It note signed by Dorner claiming, "I never lied! Here is my vindication."

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It also contained a keepsake coin bearing the name of former Los Angeles Police Chief William J. Bratton that came wrapped in duct tape, Cooper said. The duct tape bore the note, "Thanks, but no thanks Will Bratton."

Bratton told Cooper on his program, "Anderson Cooper 360," that he believed he gave Dorner the coin as he was headed overseas for the Navy, Bratton's practice when officers got deployed abroad. Though a picture has surfaced of Bratton, in uniform, and Dorner, in fatigues, shaking hands, Bratton told Cooper he didn't recall Dorner or the meeting.

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Tens of thousands mourn slain Tunisia opposition leader

TUNIS (Reuters) - Tens of thousands of Tunisians took to the streets amid scattered violence on Friday to mourn secular opposition leader Chokri Belaid, whose assassination has plunged Tunisia deeper into political crisis.

Braving chilly rain, at least 50,000 people turned out for Belaid's funeral in his home district of Jebel al-Jaloud in the capital, chanting anti-Islamist and anti-government slogans.

It was Tunisia's biggest funeral since the death of Habib Bourguiba, independence leader and first president, in 2000.

Tunisia, cradle of the Arab uprisings, is riven by tensions between dominant Islamists and their secular opponents, and by frustration at the lack of social and economic progress since President Zine al-Abidine Ben Ali was ousted in January 2011.

"The people want a new revolution," shouted mourners in Tunis, who also sang the national anthem.

Crowds surged around an open army truck carrying Belaid's coffin, draped in a red and white Tunisian flag, from a cultural center in Jebel al-Jaloud towards the leafy Jallaz cemetery, as a security forces helicopter flew overhead.

Police fired teargas and shots in the air to disperse youths who were smashing cars near the cemetery, forcing some mourners to run from the choking clouds. Police also used teargas against demonstrators outside the Interior Ministry.

"Belaid, rest in peace, we will continue the struggle," mourners chanted, holding portraits of the politician killed near his home on Wednesday by a gunman who fled on a motorcycle.

Some demonstrators denounced Rachid Ghannouchi, leader of the ruling Islamist Ennahda party. "Ghannouchi, assassin, criminal," they chanted. "Tunisia is free, terrorism out."

Police fired teargas to disperse anti-government protesters throwing stones and petrol bombs in the southern mining town of Gafsa, a stronghold of support for Belaid, witnesses said.

Crowds there had chanted "The people want the fall of the regime", a slogan first used against Ben Ali.

CRADLE OF REVOLT

In Sidi Bouzid, the southern town where the revolt against the ousted strongman began, about 10,000 marched to mourn Belaid and shout slogans against Ennahda and the government.

Banks, factories and some shops were closed in Tunis and other cities in response to a strike called by unions in protest at Belaid's killing, but buses were running normally.

Tunis Air suspended all its flights because of the strikes, a spokesman for the national airline said, adding that flights operated by other airlines were not affected.

However, airport sources in Cairo said Egypt's national airline EgyptAir had canceled two flights to Tunisia after staff at Tunis airport joined the general strike.

After Belaid's assassination, Prime Minister Hamdi Jebali, an Islamist, said he would dissolve the government and form a cabinet of technocrats to rule until elections could be held.

But his own Ennahda party and its secular coalition partners complained they had not been consulted, casting doubt over the status of the government and compounding political uncertainty.

No one has claimed responsibility for the killing of Belaid, a lawyer and secular opposition figure.

His family have blamed Ennahda but the party has denied any hand in the shooting. Crowds have attacked several Ennahda party offices in Tunis and other cities in the past two days.

"Hope still exist in Tunisia," Fatma Saidan, a noted Tunisian actor, told Reuters at Belaid's funeral. "We will continue to struggle against extremism and political violence."

She called for national unity, saying: "We are ready to accept Islamists, but they don't accept us."

SECULAR SYMBOL

While Belaid had only a modest political following, his criticism of Ennahda policies spoke for many Tunisians who fear religious radicals are bent on snuffing out freedoms won in the first of the revolts that rippled through the Arab world.

Secular groups have accused the Islamist-led government of a lax response to attacks by ultra-orthodox Salafi Islamists on cinemas, theatres and bars in recent months.

The economic effect of political uncertainty and street unrest could be serious in a country which has yet to draft a new constitution and which relies heavily on the tourist trade.

Mohamed Ali Toumi, president of the Tunisian Federation of Travel Agencies, described the week's events as a catastrophe that would have a negative impact on tourism, but he told the national news agency TAP no cancellations had been reported yet.

France, which had already announced the closure of its schools in Tunis on Friday and Saturday, urged its nationals to stay clear of potential flashpoints in the capital.

"Unless unavoidable, it is best to stay away from the city center today, and steer clear of demonstrations and major road crossings or sensitive buildings," said Helene Conway-Mouret, minister in charge of French people living abroad.

The Austrian foreign ministry issued a similar warning.

The cost of insuring Tunisian government bonds against default rose to its highest level in more than four years on Thursday and ratings agency Fitch said it could further downgrade Tunisia if political instability continues or worsens.

(For an interactive look at Tunisia please click on http://link.reuters.com/tub85t )

(Additional reporting by Alexander Dziadosz in Cairo, Brian Love in Paris and Michael Shields in Vienna; Editing by Andrew Heavens)

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54 SAF servicemen awarded Overseas Service Medal

SINGAPORE: Fifty-four servicemen from the Singapore Armed Forces (SAF) were awarded the Overseas Service Medal at Pasir Laba Camp on Friday.

The award was given in recognition of the servicemen's contributions to the SAF's overseas operations in Afghanistan and Timor-Leste.

Defence Minister Ng Eng Hen, who presented the medals, praised the men for demonstrating a high level of skill, professionalism and resilience while carrying out their duties.

Dr Ng said the servicemen helped establish the SAF's reputation as an operationally-ready, reliable and professional partner among the international community.

He added that SAF will be concluding its deployments in Afghanistan in June this year.

- CNA/al

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Narendra Modi told us 2002 riots were unfortunate: EU envoys

NEW DELHI: European Union, which has ended over a decade-old boycott of Gujarat chief minister Narendra Modi, has been told by him that the 2002 riots in the state were unfortunate.

Modi took the unusual step of driving to Germany embassy here to a luncheon meeting with envoys and representatives of several European Union member countries that was hosted by German ambassador Michael Steiner. The meeting remained undisclosed for one month till EU ambassador Joao Cravinho went public on Thursday.

Steiner told reporters on Friday that he had always maintained that Germany had no intention of interfering in Gujarat assembly elections and that it will take a "fresh look" after the election results.

"That is exactly what we were doing and part of it is to talk directly to chief minister Modi. India is a democracy. We respect democratic institutions. We respect election results in India and we have full trust in its judicial system. Because of this respect and trust, we are now in a new phase," the German ambassador said.

However, he refused to give further details of the meeting but other sources in the know said, during the January 7 meeting with EU delegation, Modi said he will abide by the judicial verdict and that these events were unfortunate.

Modi is also understood to have said that everything should be done to avoid such events.

Asked if the EU, which has boycotted Modi for over 10 years after the riots, was softening up, Cravinho said, "The accountability of what happened in 2002, I think is the matter that is of interest to Indians and is of interest for people around the world."

He said that in India, there is a certain amount of emotion attached to what happened in 2002.

"And it is a matter that we will follow with great interest ..." he said.

Referring to last year's verdict by a Gujarat court convicting BJP legislator Maya Kodnani and Bajrang Dal leader Babu Bajrangi along with 30 others for their role in the Naroda Patia riots, the ambassador said, Indian justice might be slow but delivers.

"Some months ago, there was end of one part of judicial process which shows that justice in India may be slow but it produces results. And that has helped to look towards closure of what everybody agrees is very very terrible set of events," he told a select group of journalists.

According to the sources, EU countries feel this is the right time to engage with Modi, who has been elected third time and has no judicial verdict against him. There is also a feeling among these countries that he is a player at the national level.

Last October, Britain, a member of the EU, had ended its decade-long boycott of Gujarat when its high commissioner to India James Bevan met Modi to mark a "cordial beginning" to fresh ties, with the two discussing opportunities for greater economic cooperation.

In the first engagement with Gujarat in 10 years after it snapped all ties with the state in the aftermath of the 2002 communal riots, the British high commissioner met Modi for about 50 minutes, discussing a range of issues, including climate change and investments.

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Southern diet, fried foods, may raise stroke risk

Deep-fried foods may be causing trouble in the Deep South. People whose diets are heavy on them and sugary drinks like sweet tea and soda were more likely to suffer a stroke, a new study finds.

It's the first big look at diet and strokes, and researchers say it might help explain why blacks in the Southeast — the nation's "stroke belt" — suffer more of them.

Blacks were five times more likely than whites to have the Southern dietary pattern linked with the highest stroke risk. And blacks and whites who live in the South were more likely to eat this way than people in other parts of the country were. Diet might explain as much as two-thirds of the excess stroke risk seen in blacks versus whites, researchers concluded.

"We're talking about fried foods, french fries, hamburgers, processed meats, hot dogs," bacon, ham, liver, gizzards and sugary drinks, said the study's leader, Suzanne Judd of the University of Alabama in Birmingham.

People who ate about six meals a week featuring these sorts of foods had a 41 percent higher stroke risk than people who ate that way about once a month, researchers found.

In contrast, people whose diets were high in fruits, vegetables, whole grains and fish had a 29 percent lower stroke risk.

"It's a very big difference," Judd said. "The message for people in the middle is there's a graded risk" — the likelihood of suffering a stroke rises in proportion to each Southern meal in a week.

Results were reported Thursday at an American Stroke Association conference in Honolulu.

The federally funded study was launched in 2002 to explore regional variations in stroke risks and reasons for them. More than 20,000 people 45 or older — half of them black — from all 48 mainland states filled out food surveys and were sorted into one of five diet styles:

—Southern: Fried foods, processed meats (lunchmeat, jerky), red meat, eggs, sweet drinks and whole milk.

—Convenience: Mexican and Chinese food, pizza, pasta.

—Plant-based: Fruits, vegetables, juice, cereal, fish, poultry, yogurt, nuts and whole-grain bread.

—Sweets: Added fats, breads, chocolate, desserts, sweet breakfast foods.

—Alcohol: Beer, wine, liquor, green leafy vegetables, salad dressings, nuts and seeds, coffee.

"They're not mutually exclusive" — for example, hamburgers fall into both convenience and Southern diets, Judd said. Each person got a score for each diet, depending on how many meals leaned that way.

Over more than five years of follow-up, nearly 500 strokes occurred. Researchers saw clear patterns with the Southern and plant-based diets; the other three didn't seem to affect stroke risk.

There were 138 strokes among the 4,977 who ate the most Southern food, compared to 109 strokes among the 5,156 people eating the least of it.

There were 122 strokes among the 5,076 who ate the most plant-based meals, compared to 135 strokes among the 5,056 people who seldom ate that way.

The trends held up after researchers took into account other factors such as age, income, smoking, education, exercise and total calories consumed.

Fried foods tend to be eaten with lots of salt, which raises blood pressure — a known stroke risk factor, Judd said. And sweet drinks can contribute to diabetes, the disease that celebrity chef Paula Deen — the queen of Southern cuisine — revealed she had a year ago.

The National Institute of Neurological Disorders and Stroke, drugmaker Amgen Inc. and General Mills Inc. funded the study.

"This study does strongly suggest that food does have an influence and people should be trying to avoid these kinds of fatty foods and high sugar content," said an independent expert, Dr. Brian Silver, a Brown University neurologist and stroke center director at Rhode Island Hospital.

"I don't mean to sound like an ogre. I know when I'm in New Orleans I certainly enjoy the food there. But you don't have to make a regular habit of eating all this stuff."

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

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Ex-LA Cop Sought in Shootings of 3 Cops, 2 Slayings

Police in Southern California say they suspect that a fired cop is connected to the shootings -- one fatal -- of three police officers this morning, as well as the weekend slayings of an assistant women's college basketball coach and her fiancé in what cops believe are acts of revenge against the LAPD, as suggested in the suspect's online manifesto.

Former police officer Christopher Jordan Dorner, 33, who's a U.S. Navy reservist, has been publically named as a suspect in the killings of Monica Quan, 28, and her 27-year-old fiancé, Keith Lawrence, Irvine police Chief David L. Maggard said at a news conference Wednesday night.

"We are considering him armed and dangerous," Lieutenant Julia Engen with the Irvine Police Department said.

Police said three police officers were shot early this morning: one in Corona, Calif., and two in Riverside, Calif. The Riverside Police Department said one of its officers was killed, KABC-TV reported. The conditions of the two other officers were not immediately released. Police reportedly suspect a connection to Dorner.

Police around Southern California are wearing tactical gear, including helmets and guns across their chests. The light-up signs along California highways show the license plate number of Dorner's car, and say to call 911 if it is seen. The problem, police say, is that they believe Dorner is switching license plates on his car, a 2005 charcoal gray Nissan Titan pickup truck.

Lawrence was found slumped behind the wheel of his white Kia in the parking lot of their upscale apartment complex Sunday and Quan was in the passenger seat.

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"A particular interest at this point in the investigation is a multi-page manifesto in which the suspect has implicated himself in the slayings," Maggard said.

Police said Dorner's manifesto included threats against members of the LAPD. Police say they are taking extra measures to ensure the safety of officers and their families.

The document, allegedly posted on an Internet message board this week, apparently blames Quan's father, retired LAPD Capt. Randy Quan, for his firing from the department.

"Your lack of ethics and conspiring to wrong a just individual are over," he allegedly wrote.

One passage from the manifesto reads, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," it reads. "I'm terminating yours."

Dorner was with the department from 2005 until 2008, when he was fired for making false statements.

Randy Quan, who became a lawyer in retirement, represented Dorner in front of the Board of Rights, a tribunal that ruled against Dorner at the time of his dismissal, LAPD Capt. William Hayes told The Associated Press Wednesday night.

According to documents from a court of appeals hearing in October 2011, Dorner was fired from the LAPD after he made a complaint against his field-training officer, Sgt. Teresa Evans, saying in the course of an arrest she had kicked a suspect who was a schizophrenic with severe dementia.

After an investigation, Dorner was fired for making false statements.

"We have strong cause to believe Dorner is armed and dangerous," Maggard said.

Police say Dorner is 6-feet tall, and weighs 270 pounds. He has black hair and brown eyes.

Meanwhile, Cal State-Fullerton is still mourning the loss of their beloved assistant coach.

"There are really no words to convey the sadness that our program feels, that the young women who have had the privilege of working with such a bright and passionate woman," head coach Marcia Foster said earlier this week. "I want to especially send out condolences to Randal and Sylvia Quan, and her brother Ryan."

After college, Quan coached at Lutheran University in Thousand Oaks and has spent the past two years as an assistant coach at Cal State-Fullerton. The university has posted a memorial page on its sports website dedicated to Quan.

Lawrence was a business graduate who recently started working as a public-safety officer at USC.

The Associated Press contributed to this report.

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Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden this week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Joe Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in a speech in Munich.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed in 1979 after the overthrow of Iran's pro-western monarchy and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL "ON THE TABLE"

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel sees its existence as directly threatened by the prospect of an nuclear-armed Iran, given Tehran's refusal to recognize the existence of the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ...are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his re-election last November may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams; Editing by William Maclean and Jon Boyle)

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Bank of England holds record-low rates despite recession threat

LONDON - The Bank of England voted on Thursday to freeze its key interest rate at a record low 0.50 per cent and maintain the level of its quantitative easing cash stimulus, despite the threat of a triple-dip recession in Britain.

The central bank said in an unexpectedly long statement that its Monetary Policy Committee (MPC) had voted to maintain its emergency QE stimulus at £375 billion ($589 billion, 434 billion euros).

The BoE added that overall economic activity in Britain had been "broadly flat" over the past year, despite worries that the economy could be heading for the third recession in five years.

The stimulus has been used to try and help boost economic output, which unexpectedly shrank by 0.3 per cent in the final quarter of 2012. However, the economy flatlined over the entire year with zero growth.

Across in Frankfurt, the European Central Bank also opted to maintain its main interest rate at a record-low level of 0.75 per cent, amid ongoing debt strains in the crisis-hit eurozone.

"Over the past year, there has been considerable volatility in quarterly output growth," the Bank of England said in Thursday's statement.

"Looking through the influence of temporary factors, overall output appears to have been broadly flat. In large part that reflects sharp falls in particular sectors of the economy that are unlikely to be repeated in 2013.

"In contrast, the combined output of the manufacturing and services sectors has grown modestly. Business surveys suggest the pace of expansion is likely to remain muted in the near term," the BoE added.

The central bank said 12-month inflation would rise further in the near-term and could remain above its 2.0-per cent target for the next two years. However, it was then forecast to return to "around" the target as price pressures fade.

Policymakers also mulled withdrawing QE stimulus, in order to pull inflation lower, but decided that it would risk endangering any recovery. QE can risk stoking inflation as it is tantamount to printing money.

"The Committee discussed the appropriate policy response to the combination of the weakness in the economy and the prospect of a further prolonged period of above-target inflation," it said, adding it was necessary to look beyond the period of above-target inflation.

"Attempting to bring inflation back to target sooner by removing the current policy stimulus more quickly than currently anticipated by financial markets would risk derailing the recovery and undershooting the inflation target in the medium term."

Thursday's decisions were in line with expectations and came as incoming BoE governor Mark Carney called for the bank to ready plans for a smooth eventual withdrawal of QE stimulus to avoid major disruption on markets.

Canadian central bank chief Carney -- who takes the helm from current BoE boss Mervyn King in July -- set out his views on QE before a group of cross-party lawmakers on parliament's Treasury Select Committee.

"The bank will need to design, implement and ultimately (manage an) exit from unconventional monetary policy measure in a manner that reinforces public confidence," Carney said in written testimony to the committee.

"The exit needs to be achieved without disrupting the gilts (bonds) market," he added ahead of the latest decision.

Quantitative easing (QE) involves a central bank creating cash to buy assets like government and corporate bonds, with the aim of boosting lending by retail banks and stimulating economic activity.

The BoE's main lending rate has stood at the record-low 0.50 per cent since March 2009, when it also embarked upon its radical stimulus policy.

- AFP/ck

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