More cases of alleged sexual assault reported from Punjab, Haryana

CHANDIGARH: Amid outrage and condemnation against the brutal Delhi gang-rape, more cases of alleged sexual assault were reported from Punjab and Haryana on Monday. However, the demand for immediate action against the perpetrators seems to have ensured swift action and police arrested the accused in most cases.

Jhajjar police have booked two persons for allegedly abducting and raping a 19-year-old girl from Bahadurgarh. In her complaint, the victim said that she had gone for a walk in a park on Sunday when two persons -- Anil Kumar, 20, of Barahi village and Subhash Kumar, 30, of Sonipat district -- bundled her into a car and sped away. They raped her before dumping her near her residence the next morning.

Jhajjar SP Anil Dhawan said the accused were booked under sections 365 (kidnapping or abducting) and 376 (rape) of IPC and arrested within hours of the complaint being lodged.

In another case, a doctor allegedly raped a girl after inviting her to Ludhiana with the promise of getting her admission in a post-graduate course. He has been arrested and sent to police remand till January 1. According to the police, Kanwar Samrat was arrested after a complaint by a 29-year-old divorcee woman, who had got in touch with the accused from Samana through the internet. They had got engaged on May 22. Samrat called her to Ludhiana city on October 10 and violated her . When he neither got her an admission nor married her, she went to the police.

"We have registered a case of cheating and rape against the accused on the basis of complaint. He was produced before the court which sent him to two days police remand. We are interrogating him," a police officer said.

Two more cases were reported in Amritsar. While police arrested a migrant worker for allegedly raping a minor girl for over four months, they have registered a case against a local, Milan Kapoor, for raping a woman on the pretext of marrying her and is now absconding. Police said Dhoti Yadav, a resident of Bihar, allegedly raped the 13-year-old girl repeatedly for months.

In a similar case in Mansa, an Armyman has been booked for raping a 24-year-old woman for about two years on the pretext of marriage. When the girl came to know that her perpetrator, Sukhpal Singh, was already married, she approached the police on Saturday and was registered. Sukhpal is a resident of Chak Bhai Ka village and at present posted in Rajasthan.

Similarly in Ferozepur's Jhirka town, three youths were arrested for allegedly raping and blackmailing an 18-year-old girl for six months, said SP Sukhbir Singh. The victim, in her complaint, had alleged that the accused had raped her and made an MMS of the same for the purpose of blackmailing, he said.

In Gurdaspur district, a labourer Radhey Shyam was arrested on Saturday for allegedly raping and killing a minor girl, police said. The 13-year-old's body was found in a sugarcane field at Hassanpur village. In Jalandhar, four persons were arrested for allegedly raping a minor girl in Bhogpur area and making her pregnant, local SHO B S Bajwa said.

A youth Abhimanyu was arrested by the Mohali police for allegedly molesting a girl and making an MMS of the act after taking the victim to Kasauli in Himachal Pradesh on the pretext of attending a marriage, SSP (Ludhiana) G P S Bhullar said.

Meanwhile, a 19-year-old student of a private engineering college, arrested for allegedly abducting and raping his dalit classmate in Kurukshetra, was produced in a court on Monday and remanded in judicial custody. Both the victim and the accused, Gugandeep Virk, are BTech students of a private engineering college

in Karnal.In Sirsa, students blocked the Sirsa-Hisar-Delhi highway for more than an hour on Monday, demanding death penalty for the Delhi gang rape and murder accused and a new legislation to curb crime against women. The entire traffic on NH-10 had to be diverted from Sirsa bypass as students refused to lift the blockade and raised slogans demanding death penalty to the rapists and murderers.

Roshan Suchan, a student, said, "The rapists must be hanged and the government must bring fast track courts to dispose of all rape case." Heavy police force was rushed to the spot and students were finally persuaded to lift the blockade.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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Fiscal Cliff-Hanger: No Vote Tonight, Reid Says

With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called "fiscal cliff," a senior White House official tells ABC News that President Obama is still "modestly optimistic" that a deal can be struck to prevent middle class taxes from increasing on New Year's Day.

But a resolution to the ordeal won't come tonight.

Senate Majority Leader Harry Reid adjourned his chamber just before 6 p.m., ensuring a potential deal could not be voted on before senators return to business Monday morning.

The Nevada lawmaker vowed despite the recess, the parties' leadership would continue negotiations throughout the night.

Vice President Biden has now re-emerged as a key player, back in Washington and playing "a direct role" in trying to make a deal with Senate Republicans. Biden has been tapped because of his long-standing relationship with Senate Republican Leader Mitch McConnell.

A Democratic source says that McConnell seems to be genuinely interested in getting an agreement. The news dovetails with reports that the GOP has backed off a key Social Security measure that had stalled negotiations.

According to sources, the row was sparked when the GOP offered a proposal that included a new method of calculating entitlement benefits with inflation. Called the "chained consumer price index," or Chained CPI, the strategy has been criticized by some Democrats because it would lower cost of living increases for Social Security recipients.

"We thought it was mutually understood that it was off the table for a scaled-back deal," a Democratic aide said. "It's basically a poison pill."

Obama has floated chained CPI in the past as part of a grand bargain, despite opposition from the AARP and within his own party.

Also in the Republican plan brought today: An extension of the current estate tax and no increase in the debt ceiling. Higher income earners would see their taxes increase, but at levels "well above $250,000," the sources said.

That "major setback" in the talks was evident on the floor of the Senate this afternoon.

"I'm concerned about the lack of urgency here, I think we all know we are running out of time," McConnell said, "I want everyone to know I am willing to get this done, but I need a dance partner."

McConnell, R-Ky., said he submitted the Republican's latest offer to Reid, D-Nev., at 7:10 p.m. Saturday and was willing to work through the night. Reid promised to get back to him at 10 this morning, but has yet to do so.

Why have the Democrats not come up with a counteroffer? Reid admitted it himself moments later.

"At this stage we're not able to make a counteroffer," Reid said noting that he's had numerous conversations with Obama, but the two parties are still far apart on some big issues, "I don't have a counteroffer to make. Perhaps as the day wears on I will be able to."

McConnell said he believes there is no major issue that is the sticking point but rather, "the sticking point appears to be a willingness, an interest, or frankly the courage to close the deal."

J. Scott Applewhite/AP Photo

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Reid said late this afternoon that the fiscal cliff negotiations were getting "real close" to falling apart completely.

"At some point in the negotiating process, it appears that there are things that stop us from moving forward," he said. "I hope we're not there but we're getting real close and that's why I still hold out hope that we can get something done. But I'm not overly optimistic but I am cautiously optimistic that we can get something done."

Reid said there were serious difference between the two sides, starting with Social Security. He said Democrats are not willing to cut Social Security benefits as part of a smaller, short-term agreement, as was proposed in the latest Republican proposal.

"We're not going to have any Social Security cuts. At this stage it just doesn't seem appropriate," he said. "We're open to discussion about entitlement reforms, but we're going to have to take a different direction. The present status will not work."

Reid said that even 36 hours before the country could go over the cliff, he remains "hopeful" but "realistic," about the prospects of reaching an agreement.

"The other side is intentionally demanding concessions they know we are not willing to make," he said.

The two parties were met separately at 3 p.m., and before going in Reid said he hoped there would be an announcement to make on a way forward afterwards. But as of this evening there was no agreement and no counterproposal.

McConnell said earlier today he placed a call to Vice President Biden to see if he could "jump start the negotiations on his side."

In an interview aired this morning -- well before the breakdown -- Obama suggested that a smaller deal remained the best hope to avoid the perilous package of spending cuts and tax increases.

On NBC's "Meet the Press" the president said if Republicans agreed to raising taxes on top income earners it should be enough to avoid the triggers that would execute the $607 billion measure. Economists agree that going over the cliff would likely put the country back in recession.

"If we have raised some revenue by the wealthy paying a little bit more, that would be sufficient to turn off what's called the sequester, these automatic spending cuts, and that also would have a better outcome for our economy long-term," he said.

Saying the "pressure is on Congress to produce," the president did not specify what income level his party would deem acceptable as the cutoff for those who would see their tax rates remain at current levels.

The president has called for expiration of the "Bush-era" tax cuts to affect household earnings over $250,000 since the campaign, but has reportedly floated a $400,000 figure in past negotiations.

House Speaker John Boehner once offered a $1 million cut-off in his failed "Plan B" proposal, which failed to garner enough support among the House Republicans.

"It's been very hard for Speaker Boehner and Republican Leader McConnell to accept the fact that taxes on the wealthiest Americans should go up a little bit as part of an overall deficit reduction package," the president said.

Domestic programs would lose $55 billion in funding should sequestration pass, including $2 billion to Medicare and unemployment benefits. The Pentagon would take a $55 billion loss as well, or 9 percent of its budget.

Repeating remarks he made Friday after a meeting with congressional leaders,
Obama said that should negotiations fail he has asked Reid to introduce a stripped-down proposal to Congress for a straight up-or-down vote -- if it isn't blocked.

"If all else fails, if Republicans do in fact decide to block so that taxes on the middle class do in fact go up on Jan. 1, then we'll come back with a new Congress on Jan. 4, and the first bill that will be introduced on the floor will be to cut taxes on middle-class families," he said of the worst-case scenario. "I don't think the average person is going to say, 'Gosh, you know, that's a really partisan agenda.'"

The interview with the president was taped Saturday while Reid and McConnell scrambled to their offices for a solution behind closed doors. Press staking out Capitol Hill reported little public activity from the leaders or their surrogates. If negotiations are successful, the lawmakers could introduce a bill for vote this afternoon.

The Republican leaders immediately bit back at the president's remarks. In a written statement Boehner said casting blame was "ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party. "

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Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

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Brazil, Mexico have most Latin American billionaires

MEXICO CITY: Brazil and Mexico have the most billionaires in Latin America but earn the least from estate taxes, according to a new study from a regional economic group.

Brazil tops the billionaires list with 30, followed by Mexico, with 11, said this month's report from the Economic Commission for Latin America and the Caribbean.

Mexico's Carlos Slim is the richest in the world according to the annual Forbes magazine ranking.

Yet between 2005 and 2007, Mexico earned just 0.18 per cent of its GDP from estate taxes, and Brazil only 0.44 per cent, according to the report on economic elites, inequality and taxation.

That put them behind several other Latin American countries with far fewer billionaires, such as Colombia, which has three billionaires and earned 0.54 per cent from estate taxes.

And income disparities are vast.

More than two billion people live on less than US$2 a day worldwide, "revealing the extreme disparities in the global economy," wrote study authors Andres Solimano and Juan Pablo Jimenez.

The sharp concentration of income and wealth in the hands of a few "reduces the legitimacy of capitalism," they said.

The wide gap between the haves and the have-nots also undermines democracy, the authors added, because "winning an election requires financing, giving an advantage to those who have resources."

Earlier this year, the United Nations called for a "billionaires tax" of 1.0 per cent that could raise more than US$40 billion a year, as part of a package of global taxes that could help raise hundreds of billions of dollars for development.

- AFP/jc

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Grateful for support: Nirbhaya’s kin

BALLIA: As the pall bearers carried Nirbhaya's body to the cremation grounds in Delhi on Sunday morning, her family members in her village finally had time for themselves.

Speaking to TOI, Nirbhaya's grandfather said, "We are grateful for the support we received in the protests against what happened to Nirbhaya. Otherwise, this fight for justice could have never been fought."

The women of the family stayed indoors as family elders gathered to plan for her parents' return to the village. The grandfather said, "Her parents and younger siblings will reach Ballia on Tuesday. The 13-day-long last rites will be performed here."

For the nondescript village, the last few days have been very hectic. The local BJP MLA and leaders of the Samajwadi Party made repeated visits after Nirbhaya's death. But the flurry of activity that catapulted this village into the limelight is now raising questions about what the "system" proposes to do to ensure no girl has to undergo what Nirbhaya went through.

"Primarily, people leave this village because they want to prosper. Basic health and education infrastructure is missing here. We don't need sympathy, we need development. If there are better facilities here, we will make sure our children stay here, safely," said Bharat Paswan, a resident of Nirbhaya's village.

That is, however, a promise none has made. For one, UP's revenue minister Ambika Chaudhary belongs to the region. There is also a bevy of senior Congress leaders who are from the region but are conspicuous by their absence. Union MoS for home, RPN Singh, may have made up by being present at Nirbhaya's funeral in Delhi on Sunday, but other Congress leaders from east UP have not visited the family.

The BJP MLA from the region, Upendra Tiwari, visited only after he sniffed an opportunity to be heard and photographed. "What help can they possible promise us," Nirbhaya's uncle asked.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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'Cliff' Summit Brings Hope for a Deal

Washington brinkmanship appears to have created a last minute chance for the White House and Congress to agree on a plan to avoid sending the country over the fiscal cliff.

President Obama emerged from a White House summit this evening to say "we had a constructive meeting today" and that he was "optimistic" that they could devise a proposal ahead of a Jan. 1 deadline that would otherwise automatically trigger a wide range of higher taxes and steep budget cuts. Economists fear that such a combination could throw the country into a recession.

The president lamented that a deal is coming down to the final hours.

"The American people are watching what we do... (their) patience is already thin," the president said. "It's deja vu all over again."

He added later that for Americans the repeated last second efforts to dodge economic crises "is mind boggling to them. It has to stop."

After leaving the summit, the Senate Democratic and Republican leaders announced on the Senate floor that they're aiming to have a proposal on the fiscal cliff drawn up by Sunday, with the potential to put it on the Senate floor that afternoon.

Mandel Ngan/AFP/Getty Images

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"We had a good meeting down at the White House," Sen. Mitch McConnell, R-Ky., said. "We are engaged in discussions, the majority leader, myself and the White House in the hopes that we can come forward as early as Sunday and have a recommendation that I can make to my conference and the majority leader can make to his conference."

McConnell said that he is "hopeful and optimistic" and they'll be "working hard" over the next 24 hours "to see if we can get there."

Majority Leader Harry Reid, D-Nev., echoed those sentiments.

"We certainly hope something will come from that," Reid said of today's White House meeting. "The Republican leader and I and our staffs are working to see what we can come up with. We shouldn't take a long time to do that."

The Senate will come in at 1 p.m. on Sunday. There will be a caucus meeting in the afternoon. Reid says he hopes by that time on Sunday there will be a determination if a proposal can be brought to the floor.

"There was not a lot of hilarity in the meeting. Everyone knows how important it is, it was a very serious meeting," Reid said on today's White House meeting.

Reid warned that whatever they come up with it will be "imperfect."

"Some people aren't going to like it," Reid said. "Some people will like it less but that's where we are. And I feel confident that we have an obligation to do the best we can, and that was made very clear at the White House."

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Syria opposition leader rejects Moscow invitation

ALEPPO PROVINCE, Syria/BEIRUT (Reuters) - Syria's opposition leader has rejected an invitation from Russia for peace talks, dealing another blow to international hopes that diplomacy can be resurrected to end a 21-month civil war.

Russia, President Bashar al-Assad's main international protector, said on Friday it had sent an invitation for a visit to Moaz Alkhatib, whose six-week-old National Coalition opposition group has been recognized by most Western and Arab states as the legitimate voice of the Syrian people.

But in an interview on Al Jazeera television, Alkhatib said he had already ruled out such a trip and wanted an apology from Moscow for its support for Assad.

"We have clearly said we will not go to Moscow. We could meet in an Arab country if there was a clear agenda," he said.

"Now we also want an apology from (Russian Foreign Minister Sergei) Lavrov because all this time he said that the people will decide their destiny, without foreign intervention. Russia is intervening and meanwhile all these massacres of the Syrian people have happened, treated as if they were a picnic."

"If we don't represent the Syrian people, why do they invite us?" Alkhatib said. "And if we do represent the Syrian people why doesn't Russia respond and issue a clear condemnation of the barbarity of the regime and make a clear call for Assad to step down? This is the basic condition for any negotiations."

With the rebels advancing steadily over the second half of 2012, diplomats have been searching for months for signs that Moscow's willingness to protect Assad is faltering.

So far Russia has stuck to its position that rebels must negotiate with Assad's government, which has ruled since his father seized power in a coup 42 years ago.

"I think a realistic and detailed assessment of the situation inside Syria will prompt reasonable opposition members to seek ways to start a political dialogue," Lavrov said on Friday.

That was immediately dismissed by the opposition: "The coalition is ready for political talks with anyone ... but it will not negotiate with the Assad regime," spokesman Walid al-Bunni told Reuters. "Everything can happen after the Assad regime and all its foundations have gone. After that we can sit down with all Syrians to set out the future."

BRAHIMI TO MOSCOW

Russia says it is behind the efforts of U.N. mediator Lakhdar Brahimi, fresh from a five-day trip to Damascus where he met Assad. Brahimi, due in Moscow for talks on Saturday, is touting a months-old peace plan for a transitional government.

That U.N. plan was long seen as a dead letter, foundering from the outset over the question of whether the transitional body would include Assad or his allies. Brahimi's predecessor, Kofi Annan, quit in frustration shortly after negotiating it.

But with rebels having seized control of large sections of the country in recent months, Russia and the United States have been working with Brahimi to resurrect the plan as the only internationally recognized diplomatic negotiating track.

Russia's Middle East envoy, Deputy Foreign Minister Mikhail Bogdanov, who announced the invitation to Alkhatib, said further talks were scheduled between the "three B's" - himself, Brahimi and U.S. Undersecretary of State William Burns.

Speaking in Damascus on Thursday, Brahimi called for a transitional government with "all the powers of the state", a phrase interpreted by the opposition as potentially signaling tolerance of Assad remaining in some ceremonial role.

But such a plan is anathema to the surging rebels, who now believe they can drive Assad out with a military victory, despite long being outgunned by his forces.

"We do not agree at all with Brahimi's initiative. We do not agree with anything Brahimi says," Colonel Abdel-Jabbar Oqaidi, who heads the rebels' military council in Aleppo province, told reporters at his headquarters there.

Oqaidi said the rebels want Assad and his allies tried in Syria for crimes. Assad himself says he will stay on and fight to the death if necessary.

In the rebel-held town of Kafranbel, demonstrators held up cartoons showing Brahimi speaking to a news conference with toilet bowls in front of him, in place of microphones. Banners denounced the U.N. envoy with obscenities in English.

DIPLOMATS IMPOTENT

Diplomacy has largely been irrelevant to the conflict so far, with Western states ruling out military intervention like the NATO bombing that helped topple Libya's Muammar Gaddafi last year, and Russia and China blocking U.N. action against Assad.

Meanwhile, the fighting has grown fiercer and more sectarian, with rebels mainly from the Sunni Muslim majority battling Assad's government and allied militia dominated by his Alawite sect, an offshoot of Shi'ite Islam.

Still, Western diplomats have repeatedly touted signs of a change in policy from Russia, which they hope could prove decisive, much as Moscow's withdrawal of support for Serbian leader Slobodan Milosevic heralded his downfall a decade ago.

Bogdanov said earlier this month that Assad's forces were losing ground and rebels might win the war, but Russia has since rowed back, with Lavrov last week reiterating Moscow's position that neither side could win through force.

Still, some Moscow-based analysts see the Kremlin coming to accept it must adapt to the possibility of rebel victory.

"As the situation changes on the battlefield, more incentives emerge for seeking a way to stop the military action and move to a phase of political regulation," said Dmitry Trenin, director of the Carnegie Moscow Center.

Meanwhile, on the ground the bloodshed that has killed some 44,000 people continues unabated. According to the pro-opposition Syrian Observatory for Human Rights, a monitoring group based in Britain, 150 people were killed on Thursday, a typical toll as fighting has escalated in recent months.

Government war planes bombarded the town of Assal al-Ward in the Qalamoun district of Damascus province for the first time, killing one person and wounding dozens, the observatory said.

In Aleppo, Syria's northern commercial hub, clashes took place between rebel fighters and army forces around an air force intelligence building in the Zahra quarter, a neighborhood that has been surrounded by rebels for weeks.

(Additional reporting by Omar Fahmy in Cairo, Dominic Evans in Beirut and Steve Gutterman and Alissa de Carbonnel in Moscow; Writing by Peter Graff; Editing by Giles Elgood)

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Obama "modestly optimistic" for fiscal deal

WASHINGTON: US President Barack Obama said Friday he was "modestly optimistic" a deal could be agreed with Republicans to head off a "fiscal cliff" crisis that could trigger a recession and rock global markets.

Obama said after meeting top congressional leaders that Senate Democrats and Republicans would work overtime this weekend to try to head off a $500 billion time bomb of tax hikes and spending cuts before a January 1 deadline.

"We had a constructive meeting today," Obama said. "I'm modestly optimistic that an agreement can be achieved."

Obama said that Democratic Senate Majority leader Harry Reid and Republican minority leader Mitch McConnell would try to seal a deal on shielding the middle class from higher taxes due to come into force on Tuesday.

But he warned that if they failed, he would demand a vote in Congress on his own suggestion, to raise taxes on all American families earning over $250,000 a year and for an extension of unemployment insurance for two million people.

Such a scenario would leave Republicans in a tough political spot as if they refuse, it would be easy for the White House to blame them for the economy toppling over the cliff.

Obama also vented frustration that America's dysfunctional political system meant a slog through the Christmas and New Year vacation after it failed to come up with a deal until just before Tuesday's deadline.

"Ordinary folks, they do their jobs. They meet deadlines. They sit down and they discuss things and then things happen.

"The notion that our elected leadership can't do the same thing is mind-boggling to them. It needs to stop."

McConnell said after the talks, also involving Republican House Speaker John Boehner and Democratic House minority leader Nancy Pelosi that he was "hopeful and optimistic."

An aide to Boehner said the talks focused on "potential options and components for a plan that could pass both chambers of Congress" and said the speaker told Obama that the Senate must go first, before the House acts.

Earlier, Wall Street picked up pessimistic signs before Obama's talks.

The Dow Jones Industrial Average dropped 158.20 points or 1.21 percent, as Washington's perennial gridlock threatened to deal what Obama described as a "politically self-inflicted wound" to the economy.

If no deal is reached by January 1, all Americans will face a tax hike and massive and automatic budget cuts will come into force which budget experts say could trigger a new US recession and cause a spike in unemployment.

It is not clear whether the Obama plan would avert the massive automatic spending cuts or deal with his separate request to raise the $16 trillion ceiling on government borrowing.

Republicans want to extend George W. Bush-era tax cuts due to expire on Tuesday for everyone and accuse the president of failing to offer meaningful spending cuts in a bargain in return for them agreeing to raise revenues.

Some top lawmakers clung to hope.

Republican Senator Bob Corker earlier complained Obama and Democrats in Congress had balked at cutting spending on social programs weighing on the budget and inflating the deficit.

"We're going to end up with a small, kick-the-can-down-the-road bill that creates another fiscal cliff to deal with this fiscal cliff. How irresponsible is that?" Corker told reporters.

Retiring Democratic Senator Ben Nelson had warned: "If this meeting is not successful in achieving a proposal, I think you need to get a parachute."

Obama broke off his vacation in Hawaii in search of a last-minute deal and Boehner called the House back to work on Sunday.

It is questionable if any package could pass the House as restive conservatives last week rebuked Boehner by rejecting his fallback plan that would have raised taxes on people earning $1 million.

While each side must for the sake of appearances be seen to be seeking a deal, the easiest way out of the mess might be to allow the economy to go over the cliff, but to fix the problem in the first few days of next year.

In that scenario, Republicans, who are philosophically opposed to raising taxes, could back a bill to lower the newly raised rates on almost all Americans, thus sidestepping the stigma of raising taxes.

Recent polls show a majority of Americans back Obama's handling of the crisis, and would blame Republicans for a failure to fix it, so the president could get a short-term political boost from an early deal next year.

Should the stalemate linger however, the crisis would cloud the early months of Obama's second term, would dent his popularity and could detract from his key political goals like immigration reform and gun control.

-AFP/ac

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