Not 'Wild West': Talking Cyber Ops at Iran's Backdoor

Robert Clark, the operational attorney for U.S. Cyber Command, stood in a grand ballroom with gold flaked ceilings and sparkling chandeliers to address an audience that included men in flowing white robes and veiled women and tried to hammer home a single point: cyber warfare is not the "Wild West."

Clark, who emphasized that he was speaking only in a personal capacity and not on behalf of the U.S. government, wanted to assure the relatively small gathering in the United Arab Emirates that in an age where a new "revolutionary" cyber weapon like Stuxnet is discovered every few months -- usually on computers in Iran, just across the Arabian Gulf -- legal considerations are taken into account before cyber attacks are launched.

"Articles that talk about cyber warfare and [say] that rules of engagement aren't evolving as fast as [the cyber attacks], it's just not true," Clark said. "We have the law of armed conflict applying to any type conflict and it applies to cyberspace operations also... It's just not the Wild West out there."

For most of his presentation, Clark spoke in generalities about the legal aspects of American cyber capabilities because despite the months-old admission from his boss, U.S. Cyber Command chief Gen. Keith Alexander, that the military is developing a "pro-active, agile cyber force," and the oft-cited New York Times report on America's role in developing Stuxnet, the devastating cyber weapon that hit an Iranian nuclear facility in late 2009, no current American officials have gone on record claiming responsibility for an offensive cyber attack.

However, emboldened by a government colleague's praise of Stuxnet earlier this year, Clark couldn't resist using it as a hypothetical example.

He said that before a weapon like Stuxnet would be launched, the same legal criteria would be considered as if it were a physical military attack. Is there an imminent threat from the target? Does it absolutely have to be taken out? Will the attack cause casualties or collateral damage that could and should be avoided?

Answering his own question about casualties, Clark echoed comments from colleague Air Force Col. Gary Brown when he noted the impressive restraint of the worm. Though Stuxnet was discovered on thousands of computers around the world in 2010, cyber researchers quickly realized that it was something of a smart bomb. It would spread harmlessly from computer to computer until it found itself on the exact system configuration -- a control system at an Iranian nuclear facility -- it was meant to target.

"Stuxnet," Clark said, "was a very discriminant weapon."

After Stuxnet was discovered and analyzed, Richard Clarke, a former White House counter-terrorism adviser and current ABC News consultant, said he thought that Stuxnet showed such care to limit collateral damage that it must have been developed with healthy input from anxious lawyers.

Robert Clark's presentation Wednesday was one of the first talks at the Black Hat security conference held at the opulent Emirate Palace Hotel in Abu Dhabi and though most of the presentations were highly technical, Clark wasn't the first and or the last to talk about the cyber struggle over Iran.

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Egypt demonstrators reject Mursi call for dialogue

CAIRO (Reuters) - Demonstrators rejected a call from Egypt's Islamist President Mohamed Mursi for a national dialogue after deadly clashes around his palace, demanding the "downfall of the regime" - the chant that brought down Hosni Mubarak.

Mursi said in a televised speech late on Thursday that plans were on track for a referendum on a new constitution on December 15 despite clashes that killed seven people. He proposed a meeting on Saturday with political leaders, "revolutionary youth" and legal figures to discuss the way forward after that.

But a leading activist group rejected the offer, and fresh demonstrations were called for Friday.

The "April 6" movement, which played a prominent role in igniting the revolt against Mubarak said on its Facebook page that Friday's protests would deliver a "red card" to Mursi.

Egypt has been plunged into turmoil since Mursi issued a decree on November 22 awarding himself wide powers and shielding his decisions from judicial review.

His Islamist supporters say the decree was necessary to prevent Mubarak-era judges from interfering with reforms. A constitution drawn up by a body dominated by Islamists is due to be put to a referendum next week.

The opposition has demanded that Mursi scrap his decree, postpone the referendum and redraft the constitution.

In his address, Mursi said: "I call for a full, productive dialogue with all figures and heads of parties, revolutionary youth and senior legal figures to meet this Saturday."

Several thousand opposition protesters near the palace waved their shoes in derision after his speech and shouted "Killer, killer" and "We won't go, he will go" - another of the slogans used against Mubarak in last year's revolt.

The Cairo headquarters of the Muslim Brotherhood, the group that propelled Mursi to victory in a June election, was set ablaze. Other offices of its political party were attacked.

TENTATIVE CONCESSION

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, had urged dialogue.

Mursi said his entire decree would lapse after the constitutional referendum, regardless of its result.

He said a new constituent assembly would be formed to redraft the constitution if Egyptians rejected the one written in the past six months.

The Republican Guard, an elite unit whose duties include protecting the presidential palace, restored peace on Thursday after a night of violence outside the palace, ordering rival demonstrators to leave by mid-afternoon.

Mursi supporters withdrew, but opposition protesters remained, kept away by a barbed wire barricade guarded by tanks. By evening their numbers had swelled to several thousand.

Thousands of supporters and opponents of Mursi had fought well into Thursday's early hours, using rocks, petrol bombs and guns. Officials said 350 were wounded in the violence. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Opposition groups have called for protests after Friday prayers aimed at "the downfall of the militia regime", a dig at what they see as the Brotherhood's organized street muscle.

A communique from a leftist group urged protesters to gather at mosques and squares across Egypt, and to stage marches in Cairo and its sister city Giza, converging on the presidential palace. "Egyptian blood is a red line," the communique said.

Hardline Islamist Salafis also summoned their supporters to protest against what they consider biased coverage of the crisis by some private Egyptian satellite television channels.

Since Mursi issued his decree, six of his advisers have resigned. Essam al-Amir, the director of state television, quit on Thursday, as did a Christian official at the presidency.

The Brotherhood's supreme guide, Mohamed Badie, called for unity, saying divisions "only serve the nation's enemies".

The Islamists, who have won presidential and parliamentary elections since Mubarak was overthrown, are confident they can win the referendum and the parliamentary election to follow.

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, reversing gains made on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

(Additional reporting by Edmund Blair and Marwa Awad; Writing by Alistair Lyon and Peter Graff; Editing by Louise Ireland)

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Bieber miffed at Grammys snub, Brubeck gets nod

LOS ANGELES: Justin Bieber's manager has lambasted the Grammys organisers after the Canadian teen sensation failed to garner a single nomination for this year's music awards.

At the other end of the musical spectrum, late jazz icon Dave Brubeck was honoured with a posthumous nod for the music industry's top prizes, in a little-noticed category at Wednesday night's nominations show.

"The kid deserved it. Grammy board u blew it on this one," tweeted the Bieb's manager Scooter Braum, after the Recording Academy failed to nominate him in any of its 81 categories.

"The kid delivered. Huge successful album, sold out tour, and won people over... this time he deserved to be recognized and I don't really have any kind nice positive things to say about a decision I don't agree with."

And he added: "To his fans... looks like we get to stay the underdog a little longer."

This year's Grammy nominees were announced at a one-hour show in Nashville on Wednesday night, with New York indie pop band fun. picking up six Grammy nominations in its breakout year.

Others with multiple nods for Grammy gongs, to be awarded on February 10 in Los Angeles, included rap artist Frank Ocean, The Black Keys, British rock-folk group Mumford & Sons and ex White Stripes rocker Jack White.

Wednesday's show included a brief mention for jazz pianist and composer Brubeck, hours after he died just short of his 92nd birthday.

Brubeck, whose 1959 album "Time Out" became the first million-selling jazz record of the modern era, with classics like "Take Five" and "Blue Rondo a la Turk", already won a Grammy Lifetime Achievement Award in 1996.

But he had never won an individual category Grammy.

That may change in February, after he was shortlisted for Best Instrumental Composition for "Music of Ansel Adams: America", a 22-minute piece inspired by the late photographer and environmentalist's famous black-and-white prints.

Brubeck's son Chris, credited as joint composer, brought the concept to his father who wrote it as a piano score, before his son reworked it into a full orchestral piece, according to industry weekly Billboard.

-AFP/fl

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Tribal women wage war against IMFL

SHIMLA: Tribal women in Lahaul-Spiti and Kinnaur district have waged a unique war to curb social inequality, especially during marriages and other social functions. In a bid to curb show of wealth, women have come up with unique idea of banning the use of English liquor and those defying ban are being imposed heavy penalty.

Liquor is an important part of tribal customs and social get together are incomplete if alcohol and mutton are not served to guests. Since ages, tribals in Kinnaur are brewing liquor locally known as "angoori" while in Lahaul-Spiti they make it from wheat. But with the coming of wealth locally brewed liquor was replaced by whisky and beer resulting into social inequality widening the gap between rich and poor.

Noted social activist of Kinnaur and chairperson of Kinnaur Mahila Kalyan Parishad Ratan Manjari said over the years serving English liquor and beer during marriages and other social functions had become a show of wealth and those not having money too were serving it and get burdened with debt. "Trend was wrong which needed to be stopped and now we have done it in many villages of Kinnaur," she said. Kinnaur Mahila Kalyan Parishad has 200 mahila mandals as its members.

Ratan Manjari said for 5-6 years, they have mobilized support of women in Kinnaur district to tell them how use of English liquor and beer during marriages is resulting in waste of money besides creating divide among rich and poor. "Today, we have succeeded in banning English liquor in social functions, especially in Kalpa, Sangla, Lippa and other areas of district," she said.

To ensure that people obey the decision, a provision of imposing fine has been made by women amicably. "We have decided to impose penalty of Rs 5,000 on people serving the English liquor and those consuming it," Manjari said. She said still a lot more is required to be done.

In Lahaul-Spiti district, Udaipur village is setting an example for others by observing complete ban on English liquor and beer during social gathering for last three years. "During marriages and other functions only locally made liquor is served. Those defying ban are punished by mahila mandal members," said Hemvati, Mahila Mandal member of Udaipur.

Hemvati said if a family in the village found serving English liquor and Beer despite ban, then Rs 10,000 fine is imposed, but if same offence is committed second time then the family is boycotted socially.

"Such decisions are in larger interest of society as seeing rich people serving liquor even poor were following the trend after borrowing money. In one wedding, people were usually spending Rs 50,000 to 1 lakh only on liquor, but now with ban enforced in many villages show of wealth has been curbed in the interest of poor," said Rigzin Samphel Hayerpa, Zila Parishad member from Kolang in Lahaul-Spiti.

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Bodies Found in Hunt for Missing Iowa Cousins

Nearly five months after Iowa cousins Lyric Cook and Elizabeth Collins disappeared, the girls' families have been told two bodies were found by hunters in a wooded area, though the identities of the bodies have not been confirmed, authorities said.

Capt. Rick Abben of the Black Hawk County Sheriff's Office said at a press conference this afternoon that the bodies are being transported to the state's medical office in Ankeny, Iowa, for positive identification.

"It's definitely not the outcome that we wanted, obviously," Abben said. "This is a difficult thing for us to go through."

Lyric, 11, and Elizabeth , 9, vanished shortly after noon on July 13 while on a bike ride in the small town of Evansdale, Iowa, triggering a massive search that brought the town to a standstill. The girls' bicycles and a purse were quickly found near Meyers Lake, but there was no sign of the girls.

PHOTOS From ABC News Affiliate KCRG: The Search for Lyric & Elizabeth

Black Hawk County Police/AP Photo

Missing Iowa Girls Seen Riding Bikes on Surveillance Video Watch Video

Missing Iowa Girls: One Mother Takes 2nd Polygraph Watch Video

On the two-month anniversary of the girls' disappearance, local residents held a prayer vigil and authorities urged members of the public to provide any new information that might help them solve the case.

Authorities said the girls left Elizabeth's house in Evansdale around 12:15 p.m., were spotted at approximately 12:23 p.m. at a nearby intersection and then were seen between 12:30 and 1 p.m. on a road by the lake.

During the following week, authorities canvassed the area and drained the town's lake. Lyric's estranged parents, Misty and Dan Morrissey, at one point became the subject of intense police scrutiny because of their criminal pasts and their lack of cooperation.

Over the summer, the families received a boost when Elizabeth Smart, one of the country's most famous kidnapping survivors, offered some words of encouragement. Police found Smart after a nine-month search in Utah a decade ago.

"For as many bad things that we hear about that happen, for as many kidnappings and terrible stories about finding the remains of children, why can't these girls be the exception?" Smart told the Des Moines Register.

Elizabeth's mother, Heather Collins, told ABC News' Alex Perez in July that the wait for the girls to reappear was an agonizing one.

"A day doesn't seem like a normal day," Collins said. "It's just like it doesn't stop. It keeps dragging and dragging. You're just waiting for a time to go up to your room. You're just waiting, waiting, waiting."

"Whoever's out there, we're just begging you to bring our girls back home," she said.

A $50,000 reward had been offered for information that led to the arrest and conviction of the person responsible for the girls' disappearance.

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Critics give epic 'Hobbit' middle marks

NEW YORK: Peter Jackson's "The Hobbit: An Unexpected Journey" opens in the US this month and critics say the movie, much like the epic journey it depicts, is adventurous - but an uphill slog.

The fantasy about a Hobbit called Bilbo Baggins, Gandalf the good wizard, 13 raucous dwarves, and a host of evil forces, takes viewers back to the lavishly filmed Middle-earth world that won Oscars and rave reviews in Jackson's previous "Lord of the Rings" trilogy.

But reviews from journalists, who got to see the nearly three-hour movie ahead of its December 14 US premiere, were also somewhere in the middle.

Jackson's technical wizardry, using 3D and 48 frames a second, rather than the ordinary 24 frames, got gasps of admiration, mixed with yawns about overkill.

And while the New Zealand-born director scored high marks for the faithfulness of the adaption from J.R.R. Tolkien's book, there was incredulity - and some cynicism - about the decision to split the relatively slender "Hobbit" into three enormous movies.

"In Jackson's academically fastidious telling, however, it's as if 'The Wizard of Oz' had taken nearly an hour just to get out of Kansas," The Hollywood Reporter said in a bruising review.

"There are elements in this new film that are as spectacular as much of the Rings trilogy was, but there is much that is flat-footed and tedious as well."

Variety's critic took aim at the overwhelming detail poured into 48-frames-a-second pictures.

"Everything takes on an overblown, artificial quality in which the phoniness of the sets and costumes becomes obvious, while well-lit areas bleed into their surroundings, like watching a high-end home movie," Variety said.

"The Hobbit", which was screened for journalists in New York on Tuesday, is a prequel to the darker "Lord of the Rings," introducing the main characters and plot lines that reappear through the entire saga. The cursed golden ring also makes its first appearance.

There are bravura battle scenes, choreographed hordes of Goblins, fantastical caves, and James Bond-style narrow escapes from death for Martin Freeman's Bilbo Baggins and his dwarf friends. As in the three "Rings" movies, the natural settings of New Zealand are breath-taking.

But with so many strange beings attacking each other with swords, and so many arrows, rocks and bodies flying in 3D at the audience, the few intimately staged scenes focusing on just a couple characters can come as a relief.

When the action cut suddenly from the latest mass sword fight to a silent cave inhabited by Andy Serkis' creepy character Gollum, journalists at Tuesday's press screening broke out in a rare smattering of applause.

Jackson defended the decision to stretch the book to three movies, in contrast to the "Rings" trilogy, which was based on three books.

He told reporters Wednesday in New York that in Tolkien's often "breathless" text, "very major events are covered in two or three pages," and that transferring the action to film required a more sumptuous treatment.

Screenwriter and co-producer Philippa Boyens said the different pace responded to the dynamics of working with actors.

"Great actors come to you for the material and if you give them very slight material, you're just not going to get them. We wanted to write for these great actors," she said.

The filmmakers also defended their use of the 48 frames a second. "Fantasy should be as real as possible," Jackson said, "The levels of detail are very important."

The reviews for "The Hobbit" were far from universally negative, and many critics said the three films may well make healthy profits. On the reviews aggregator website Rotten Tomatoes, the rating of fresh versus rotten tomatoes was a high 78 percent Wednesday.

Great British actor Ian McKellen, who reprised his "Rings" role as Gandalf in "The Hobbit", batted down suggestions that the filmmakers were trying to milk the maximum profit out of Tolkien fans.

"Anyone who thinks Peter Jackson would fall for market forces, instead of artistic imperatives, just doesn't know him, doesn't know the body of his work," McKellen told reporters.

The movies will do well because Bilbo Baggins and his travails are a universal story, he said.

"It's about the little guy that we need and may be expendable, who may not come back."

-AFP/fl

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Study could spur wider use of prenatal gene tests

A new study sets the stage for wider use of gene testing in early pregnancy. Scanning the genes of a fetus reveals far more about potential health risks than current prenatal testing does, say researchers who compared both methods in thousands of pregnancies nationwide.

A surprisingly high number — 6 percent — of certain fetuses declared normal by conventional testing were found to have genetic abnormalities by gene scans, the study found. The gene flaws can cause anything from minor defects such as a club foot to more serious ones such as mental retardation, heart problems and fatal diseases.

"This isn't done just so people can terminate pregnancies," because many choose to continue them even if a problem is found, said Dr. Ronald Wapner, reproductive genetics chief at Columbia University Medical Center in New York. "We're better able to give lots and lots of women more information about what's causing the problem and what the prognosis is and what special care their child might need."

He led the federally funded study, published in Thursday's New England Journal of Medicine.

A second study in the journal found that gene testing could reveal the cause of most stillbirths, many of which remain a mystery now. That gives key information to couples agonizing over whether to try again.

The prenatal study of 4,400 women has long been awaited in the field, and could make gene testing a standard of care in cases where initial screening with an ultrasound exam suggests a structural defect in how the baby is developing, said Dr. Susan Klugman, director of reproductive genetics at New York's Montefiore Medical Center, which enrolled 300 women into the study.

"We can never guarantee the perfect baby but if they want everything done, this is a test that can tell a lot more," she said.

Many pregnant women are offered screening with an ultrasound exam or a blood test that can flag some common abnormalities such as Down syndrome, but these are not conclusive.

The next step is diagnostic testing on cells from the fetus obtained through amniocentesis, which is like a needle biopsy through the belly, or chorionic villus sampling, which snips a bit of the placenta. Doctors look at the sample under a microscope for breaks or extra copies of chromosomes that cause a dozen or so abnormalities.

The new study compared this eyeball method to scanning with gene chips that can spot hundreds of abnormalities and far smaller defects than what can be seen with a microscope. This costs $1,200 to $1,800 versus $600 to $1,000 for the visual exam.

In the study, both methods were used on fetal samples from 4,400 women around the country. Half of the moms were at higher risk because they were over 35. One-fifth had screening tests suggesting Down syndrome. One-fourth had ultrasounds suggesting structural abnormalities. Others sought screening for other reasons.

"Some did it for anxiety — they just wanted more information about their child," Wapner said.

Of women whose ultrasounds showed a possible structural defect but whose fetuses were called normal by the visual chromosome exam, gene testing found problems in 6 percent — one out of 17.

"That's a lot. That's huge," Klugman said.

Gene tests also found abnormalities in nearly 2 percent of cases where the mom was older or ultrasounds suggested a problem other than a structural defect.

Dr. Lorraine Dugoff, a University of Pennsylvania high-risk pregnancy specialist, wrote in an editorial in the journal that gene testing should become the standard of care when a structural problem is suggested by ultrasound. But its value may be incremental in other cases and offset by the 1.5 percent of cases where a gene abnormality of unknown significance is found.

In those cases, "a lot of couples might not be happy that they ordered that test" because it can't give a clear answer, she said.

Ana Zeletz, a former pediatric nurse from Hoboken, N.J., had one of those results during the study. An ultrasound suggested possible Down syndrome; gene testing ruled that out but showed an abnormality that could indicate kidney problems — or nothing.

"They give you this list of all the things that could possibly be wrong," Zeletz said. Her daughter, Jillian, now 2, had some urinary and kidney abnormalities that seem to have resolved, and has low muscle tone that caused her to start walking later than usual.

"I am very glad about it," she said of the testing, because she knows to watch her daughter for possible complications like gout. Without the testing, "we wouldn't know anything, we wouldn't know to watch for things that might come up," she said.

The other study involved 532 stillbirths — deaths of a fetus in the womb before delivery. Gene testing revealed the cause in 87 percent of cases versus 70 percent of cases analyzed by the visual chromosome inspection method. It also gave more information on specific genetic abnormalities that couples could use to estimate the odds that future pregnancies would bring those risks.

The study was led by Dr. Uma Reddy of the National Institute of Child Health and Human Development.

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Online:

Medical journal: http://www.nejm.org

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

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Tasting DNA-Altered Salmon That May Hit US Plates

Deep in the rain forests of Panama, in a secret location behind padlocked gates, barbed-wire fences and over a rickety wooden bridge, grows what could be the most debated food product of our time.

It may look like the 1993 hit movie "Jurassic Park," but at this real-life freshwater farm scientists are altering the genes not of dinosaurs -- but of fish.

They are growing a new DNA-altered saltwater fish in the mountains, far from the sea -- a salmon that could be the first genetically altered animal protein approved for the world to eat. If it is approved, this would be a landmark change for human food.

But it is one critics call "Frankenfish."

"The idea of changing an animal form, I think, is really creepy," said Gary Hirshberg, founder of Stonyfield Farm, an organic dairy farm. "When you move the DNA from a species into another species ... you create a new life form that's so new and so unique that you can get a patent for it."

And until now, AquaBounty, the multinational biotech company that for 20 years has been developing this giant fish, has kept it under close wraps.

The press has never been invited to its Prince Edward Island laboratory on the Canadian maritime coast, and its fish farm location in Panama has been kept secret out of fear of sabotage.

The Food and Drug Administration has seen it, but few from the outside. In fact, the last public tour of any kind was four years ago.

AquaBounty Creates 'Fort Knox for Fish'

ABC News was given exclusive access to see the facilities up close and an opportunity to taste this mysterious fish that FDA scientists say "is as safe as food from conventional Atlantic salmon," although have yet to officially approve it for public sale.

Ron Stotish, the president and CEO of AquaBounty Technologies, the company that created and hopes to market the eggs of this salmon to independent fish farms around the world, told ABC News it has employed bio-security measures, creating a "Fort Knox for fish," to ensure safety for the fish and prevent cross-contamination with the wild.

Entry to both facilities begins with body suits and iodine baths for shoes, which serves to keep the fish safe from germs.

Inside these protected tanks, America gets the first up-close look at the final product, the fish that has the food police up in arms.

"These are very healthy, beautiful Atlantic salmon," Stotish said.

With one big difference -- the growth rate of a regular salmon compared to that of an AquaBounty genetically modified fish.

While the AquaBounty fish do not grow to a size larger than normal salmon, they get to full size much faster, cutting costs for producers.

A normal-size 1-year-old Atlantic salmon averages 10 inches long, while the genetically modified fish at the same age is more than two times larger, coming in at 24 inches.

Salmon is the second most popular seafood in America. According to the National Oceanic and Atmospheric Administration, the average size of an Atlantic salmon is 28 inches to 30 inches and 8 pounds to 12 pounds after two years at sea.

How do they accomplish the accelerated growth?

"They differ by a single gene," Stotish said.

But, it's that single gene change that makes the DNA-altered salmon grow much faster than a normal Atlantic salmon, because it's really three fish in one.

AquaBounty scientists have taken a growth gene from the Chinook salmon and inserted it into the DNA of the Atlantic salmon because Chinooks grow fast from birth, while Atlantics do not.

"Salmon in their first two years of life grow very slowly," Stotish said.

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Britain braces for key budget update

LONDON: British finance minister George Osborne unveils his budget update on Wednesday, and will likely admit it could take longer than expected to slash the deficit as a result of the weaker-than-expected economy.

Chancellor of the Exchequer Osborne was to deliver his Autumn Statement before parliament at 1230 GMT, when the Office for Budget Responsibility (OBR) fiscal watchdog will also publish its latest growth and borrowing forecasts.

Osborne has already warned that economic recovery will take longer than hoped but insisted that abandoning the government's tough deficit-slashing austerity measures would be catastrophic amid the ongoing eurozone debt crisis.

"We had two targets, one was to get debt share falling as a share of national income by 2015/16 and also to balance the current budget," the chancellor told BBC television over the weekend.

"It's clearly taking longer to deal with Britain's debts; it's clearly taking longer to recover from the financial crisis than anyone would have hoped but we have made real progress."

Ahead of the budget update, Osborne pledged Tuesday to invest £5.0 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.

The OBR was meanwhile expected to lower its gross domestic product (GDP) forecasts as the economy faces major headwinds from state austerity, inflationary pressures and the eurozone's ongoing crisis.

Osborne had in March forecast that the British economy would grow by 0.8 per cent this year, followed by 2.0 per cent in 2013 and 2.7 per cent in 2014.

Weaker economic growth would slash taxation receipts and spark upward revisions to its official borrowing targets, according to analysts.

Alongside Osborne's budget in March, the OBR predicted that public sector net borrowing (PSNB) as a proportion of economic output would begin to fall in 2015/2016, after peaking at 76.3 per cent of GDP in 2014/15.

And it forecast state borrowing would reach £120 billion ($192 billion, 148 billion euros) in the 2012/2013 financial year ending in March, compared with £121.4 billion in 2011/2012.

But with PSNB already standing at £73.3 billion and four months of the financial year to go, Osborne could breach the target.

Recent official data showed Britain had escaped from recession in the third quarter of this year, with its economy growing 1.0 per cent.

However, experts argue this was due to one-off factors like the London Olympics and rebounding activity after public holidays in the second quarter.

The Conservative-Liberal Democrat coalition government imposed austerity measures to slash a record deficit inherited from the previous Labour administration. Opposition Labour politicians maintain that the cuts pushed the economy into a painful double-dip recession.

The Organisation for Economic Co-operation and Development urged Osborne last week to push back his debt reduction targets rather than drive through more growth-damaging austerity.

Meanwhile, the country's official statistics watchdog on Tuesday warned the government to stop claiming that real-terms National Health Service spending had increased after calculating funds had actually fallen slightly.

The UK Statistics Authority said Health Secretary Jeremy Hunt should "clarify" claims on the Conservative party website that "we have increased the NHS budget in real terms in each of the last two years".

- AFP/ck

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India urges Israel to speed up defence projects

NEW DELHI: India has asked Israel to speed up crucial bilateral defence projects, including the around Rs 13,000 crore development of two advanced surface-to-air missile (SAM) systems to arm Indian armed forces against hostile aircraft, drones and helicopters.

This came at the 10th joint working group on defence cooperation here, co-chaired by defence secretary Shashikant Sharma and Israeli defence ministry director-general Major-General Ehud Shani.

While the regional and global security situation, including the recent Israel-Hamas ceasefire, figured in the talks, the focus was on bilateral defence training programmes, exchanges, R&D projects and armament deals.

Israel is India's second largest defence supplier, second only to Russia, but the expansive ties are largely kept under wraps due to political sensitivities. Tel Aviv records military sales worth around $1 billion to New Delhi every year, ranging from Heron and Searcher UAVs, Harpy and Harop 'killer' drones to Barak anti-missile defence systems and Green Pine radars, Python and Derby air-to-air missiles.

Sources said India expressed "concern'' at the "two-year delay'' in completion of the long-range SAM (LR-SAM) project, sanctioned in December 2005 at a cost of Rs 2,606 crore to arm Indian warships.

There are "minor hitches'' even in the bigger Rs 10,076 crore medium-range SAM (MR-SAM) project, sanctioned in February 2009 for air defence squadrons of IAF.

Both the SAM systems, being developed by Israeli Aerospace Industries (IAI) in collaboration with DRDO, have the same missile with an interception range of 70-km. They are to be produced in bulk by defence PSU Bharat Dynamics (BDL) to plug the existing holes in India's air defence cover.

"While the multi-function surveillance and threat radars, weapon control systems with data links and the like of the LR-SAM have all been tested, there has been delay in the missiles being developed by IAI,'' said a source.

"But the Israelis said everything was sorted out now and they will try to make up for the delay. DRDO has already finished its work on the propulsion and other systems,'' he added. Incidentally, the LR-SAM project was to be completed by May this year.

Another major missile project, worth around $1 billion, that Israel could bag is the one to supply third-generation anti-tank guided missiles (ATGMs) to the 1.13-million strong Indian Army. The Army has already trial-evaluated the Israeli 'Spike' ATGM after the US offer of its 'Javelin' missiles was shelved due to Washington's reluctance to undertake "transfer of technology'' to ensure BDL can make them in large numbers, as reported by TOI earlier.

India is also in commercial negotiations for another two advanced Israeli Phalcon AWACS (airborne warning and control systems), capable of detecting hostile aircraft, cruise missiles and other incoming aerial threats far before ground-based radars, at a cost of over $800 million. The first three Phalcon AWACS were inducted by IAF in 2009-2010 under the $1.1 billion tripartite agreement between India, Israel and Russia.

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