India successfully tests nuclear-capable surface-to-surface Agni-I missile

Bhubaneswar: India Wednesday carried out a successful test of its nuclear-capable surface-to-surface Agni-I missile from a military base in Odisha, an official said.

The intermediate-range ballistic missile, which can strike a target 700 km away, was tested from a facility on Wheeler Island near Dhamra in Bhadrak district, 170 km from here.

The test was carried out by the Strategic Forces Command of the Indian armed forces as part of a training exercise to ensure preparedness, director of the Integrated Test Range, M.V.K.V. Prasad, said.

"The mission was successful," he said.

Scientists from the Defence Research and Development Organisation (DRDO), which developed the missile, witnessed and supervised the test, Prasad added.

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

___

Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Shooter Kills Self After Oregon Mall Rampage

A masked gunman opened fire today at Clackamas Town Center, a mall in suburban Portland, Ore., killing two people, injuring one, and then killing himself.

"I can confirm the shooter is dead of an apparent self inflicted gunshot wound," Lt. James Rhodes of the Clackamas County, Ore., Sheriff's Department said today. "By all accounts there were no rounds fired by law enforcement today in the mall."

Police have not released the names of the deceased. Rhodes said authorities are in the process of notifying victims' families. The injured victim has been transported to a local hospital.

Rhodes described the shooter as an adult male.

Witnesses from the shooting rampage said that a young man in a white hockey mask and bulletproof vest tore through the Macy's, food court, and mall hallways firing rounds at shoppers beginning around 3:30 p.m. PT today.

Hundreds of people were evacuated from the busy mall full of holiday shoppers after the shooting began.

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The gunman entered the mall through a Macy's store, ran through the upper level of Macy's and opened fire near the mall food court, firing multiple shots, one right after another, with what is believed to be a black, semiautomatic rifle, according to witness reports.

Katie Tate said she was in the parking lot of the mall when she saw the shooter run by, wearing a mask and carrying a machine gun, headed for the Macy's.

"He looked like a teenager wearing a gun, like a bullet-proof vest and he had a machine, like an assault rifle and a white mask and he looked at me," she said.

Witnesses described the shooter as being on a mission and determined, looking straight ahead. He then seemed to walk through the mall toward the other end of the building, shooting along the way, according to witness reports.

Those interviewed said that Macy's shoppers and store employees huddled in a dressing room to avoid being found.

"I was helping a customer in the middle of the store, her and her granddaughter and while we were looking at sweatshirts we heard five to seven shots from a machine gun fire just outside my store," Jacob Rogers, a store clerk, told ABC affiliate KATU-TV in Portland.

"We moved everyone into the back room where there's no access to outside but where there's a camera so we can monitor what's going on out front," Rogers said.

Evan Walters, an employee at a store in the mall, told ABC News Radio that he was locked in a store for his safety and he saw two people shot and heard multiple gunshots.

"It was over 20, and it was kind of surreal because we hear pops and loud noises," he said. "We're next to the food court here and we hear pops and loud noises all the time, but we don't -- nothing like that. It was very definite gunshots."

Police are tracing the weapon used in the shooting.

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Unknown attackers fire at Cairo protesters, nine hurt

CAIRO (Reuters) - Nine people were hurt when unknown attackers fired at protesters camping at Tahrir Square in central Cairo on Tuesday, according to witnesses and Egyptian media, as opponents and supporters of President Mohamed Mursi's plans to vote on a new constitution geared up for a day of street demonstrations.

Police cars surrounded the square, the first time they had appeared in the area since November 23, shortly after a decree by the Islamist president giving himself sweeping temporary powers touched off widespread protests.

The attackers also threw petrol bombs which started a small fire, witnesses said. Many of the protesters, awakened by the noise, chanted: "The people want the downfall of the regime." Recorded recitations of the Koran were played over speakers in the square.

Leftists, liberals and other opposition groups have called for marches to the presidential palace in the afternoon to protest against the hastily arranged referendum on a new constitution planned for Saturday, which they say is polarizing the country.

Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out "in millions" the same day in a show of support for the president and for a referendum they feel sure of winning and that critics say could put Egypt in a religious straitjacket.

Seven people were killed and hundreds wounded last week in clashes between the Islamist Muslim Brotherhood and opponents besieging Mursi's graffiti-daubed presidential palace.

The elite Republican Guard has yet to use force to keep protesters away from the palace, now ringed with tanks, barbed wire and concrete barricades, but a decree issued by Mursi late on Sunday gives the armed forces the power to arrest civilians during the referendum and until the announcement of the results.

OPPOSITION SAYS MURSI DESTROYING CONSENSUS

Leftist politician Hamdeen Sabahy, one of the most prominent members of the National Salvation Front opposition coalition, said Mursi was driving a wedge between Egyptians and destroying prospects for consensus.

As well as pushing the early referendum, Mursi has angered opponents by taking sweeping temporary powers he said were necessary to secure the country's transition to stability after a popular uprising overthrew autocratic former president Hosni Mubarak 22 months ago.

"The road Mohamed Mursi is taking now does not create the possibility for national consensus," said Sabahy.

If the constitution was passed, he said: "Egypt will continue in this really charged state. It is certain that this constitution is driving us to more political polarization."

The National Salvation Front also includes Nobel Peace Prize laureate Mohamed ElBaradei and former Arab League chief Amr Moussa.

The opposition says the draft constitution fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to noisy street protests and megaphone politics, keeping Egypt off balance and ill equipped to deal with a looming economic crisis.

Lamia Kamel, a spokeswoman for Moussa, said the opposition factions were still discussing whether to boycott the referendum or call for a "no" vote.

"Both paths are unwelcome because they really don't want the referendum at all," she said, but predicted a clearer opposition line if the plebiscite went ahead as planned.

Mahmoud Ghozlan, the Muslim Brotherhood's spokesman, said the opposition could stage protests, but should keep the peace.

"They are free to boycott, participate or say no; they can do what they want. The important thing is that it remains in a peaceful context to preserve the country's safety and security."

The army stepped into the conflict on Saturday, telling all sides to resolve their disputes via dialogue and warning that it would not allow Egypt to enter a "dark tunnel".

The continuing disruption is also casting doubts on the government's ability to push through tough economic reforms that form part of a proposed $4.8 billion IMF loan agreement.

(Writing by Edmund Blair; Editing by Will Waterman, Mohammad Zargham and Jim Loney)

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Philippines typhoon toll tops 700, hundreds missing

MANILA: The death toll from the strongest typhoon to hit the Philippines this year has climbed above 700 with hundreds more missing, many of them tuna fishermen feared lost at sea, the government said Tuesday.

Typhoon Bopha, which unleashed floods and landslides across the main southern island of Mindanao on December 4, has killed at least 714 people and obliterated entire communities, the civil defence office said.

It said nearly 115,000 houses were destroyed and more than 116,000 people remain in crowded government shelters, where they face months of waiting for new housing to be built.

A total of 890 people remain missing, but officials have said some of them could be among the 257 corpses that have been retrieved by rescuers but remain unidentified and unclaimed by relatives.

The missing also include 313 deep-sea fishermen who set off from the country's main tuna processing port of General Santos in Mindanao days before Bopha hit land, and were never heard from again.

The United Nations launched an US$65 million global aid appeal Monday for the victims of the typhoon, the deadliest natural disaster in the Philippines since Tropical Storm Washi killed 1,200 people on Mindanao's north coast last year.

- AFP/ck

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All politicians aren't criminals: Sukhbir Badal

AMRITSAR: Completely disowning the leaders of his Shiromani Akali Dal (SAD) found to be involved in recent criminal activities, Punjab deputy chief minister Sukhbir Badal, who on Monday visited the house of ASI Ravinderpal Singh, who was shot dead by an Akali leader, said all politicians are not criminals.

"If some low rung Akali leader or his remote relative was is involved in some criminal case, it doesn't mean that all Akalis are criminals," he said.

"And in these particular cases they were very low level leaders whom we never knew," said Badal adding that wherever required, the party would re-examine its enrolments.

About Sukhdev Singh Namdhari, arrested in the Ponty Chadha murder case, Sukhbir said he had ordered registration of FIR and detailed investigations against him.

Badal also asked the Amritsar deputy commissioner of police to probe about the presence of policemen at the spot when the shooting happened. "Amritsar commissioner of police would finalize this report by 9am tomorrow and erring policemen would be straightway dismissed for running away from their duty," said Sukhbir.

He issued these instructions after meeting the family members of slain Ravinderpal Singh at their residence at Rampura village. He said the commissioner of police has also been asked to probe the conspiracy angle in the killing of ASI as the victim girl complained she was deliberately targeted by accused Ranjit Singh Rana, as she was daughter of ASI.

She complained to Sukhbir that when her scooter was hit by them on the first instance they had uttered that she was a daughter of thanedar and on second occasion also they pointed out that she was the same girl, daughter of thanedar.

"Commissioner of Police would examine the fact that whether there was a conspiracy to eliminate ASI," Sukhbir said. He also issued instructions to the district president of SAD to probe that who recommended the induction of Rana in the SAD fold and strict action would be taken against that person. He said the state government had already decided to enlist Robinjit Kaur, the daughter of the deceased, as sub-inspector in Punjab Police keeping in view the exemplary bravery shown by her.

He said he had already issued orders to provide two security guards permanently to the family.

Was Rana high on drugs?

Was Ranjit Singh Rana, the main accused in the killing of Assistant Sub-Inspector Ravinderpal Singh, under the influence of drugs when he confronted Singh and his daughter on December 5 near Chheharata? Rana had also ignored the advice of his co-accused to not harass policeman's daughter but he didn't listen to them. According to sources, Rana who allegedly used to sell and consume heroin was under the influence of the drugs.

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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Woman Gets Life for Lottery Winner's Murder

DeeDee Moore, the Tampa woman accused of swindling and then killing lottery winner Abraham Shakespeare, was found guilty today of first degree murder and other charges, after she declined to take the stand and the defense rested without calling a single witness.

In addition to the murder charge, Moore was also found guilty of possessing and discharging a firearm resulting in death. Prosecutors did not pursue the death penalty in the case, and Moore was sentenced to life in prison without parole.

"After trial and listening to all of this over two weeks, words that were said cool, calculated, manipulated. Abraham Shakespeare was your prey and victim. Money was the route of evil you brought to Abraham. You are sentenced to life in prison you shall not be elegible for parole," Judge Emmet Battles said.

Jurors deliberated for more than three hours Monday before delivering their verdict.

Prosecutors argued that Moore, 40, befriended Shakespeare before he vanished in April 2009 after he'd won $30 million in the Florida lottery. After Shakespeare had given away most of his money to people who simply asked for it, Moore agreed to manage the little he had left, but instead, prosecutors said, stole his winnings and killed him.

During a dramatic trial Moore has broken down in tears several times, and at one point said that she went into anaphylactic shock while in custody after taking the drug Bactrim when she was having problems with cuts on her ankles from being cuffed every day.

Early today the defense announced it would rest its case without calling any witnesses. Moore did not testify during her trial.

Jay Conner/The Tampa Tribune/AP Photo

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"There is no witness that can say she ever admitted to doing the killing or participating as a principle in helping anyone else do the killing," Moore's defense attorney Byron Hileman said today.

In the courtroom this morning, Moore's friend, former inmate Rose Condora was accused of threatening witnesses by Tampa Judge Emmett Battles, and was thrown out of the courtroom.

Authorities say Shakespeare, 47, was shot twice in the chest by a .38-caliber pistol sometime in April 2009. He wasn't reported missing until November 2009. His body was found under a slab of cement in a backyard in January 2010.

Polk County authorities claim Moore offered someone a $200,000 house in exchange for reporting a false sighting of Shakespeare. She also allegedly sent the victim's son $5,000 in cash for his birthday, and used the victim's cellphone to send text messages purportedly from him.

Shakespeare's mother, Elizabeth Walker, also testified that Moore tried to hide that her son was missing, and said that he had AIDS.

Sentorria Butler, Shakespeare's ex-girlfriend and the mother of his child, also testified. Butler told the court last week that Moore is a divisive and manipulative woman who told her Shakespeare "ran off with the lady from the bank."

During the trial, jurors also watched a Walmart surveillance video that the prosecution said links Moore to Shakespeare's killing. The footage shows Moore making a $104 cash purchase of gloves, duct tape, plastic sheeting and other items detectives later found close to where Shakespeare's body was buried.

Jurors hearing the case also heard a rambling two-page letter that witness Greg Smith, a police informant who was a former friend of Shakespeare and supposed friend of Moore, says Moore allegedly forged while at a Comfort Inn & Suites in Lakeland, Fla.

The letter was meant to appear to be from Shakespeare, prosecutors said. They say the letter was a ruse to convince Shakespeare's mother that he was still alive. Moore attempted to cover her tracks while it was written, according to prosecutors.

During the trial, jurors had to be accompanied by a security escort into the courtroom after they told the judge Smith and Shakespeare's family and friends were making them feel uncomfortable outside the courthouse. None of the jurors had to be excused by the judge.

The Associated Press contributed to this report.

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Egypt's opposition rejects constitutional referendum

CAIRO (Reuters) - Egypt's main opposition coalition rejected on Sunday Islamist President Mohamed Mursi's plan for a constitutional referendum this week, saying it risked dragging the country into "violent confrontation".

Mursi's decision on Saturday to retract a decree awarding himself wide powers failed to placate opponents who accused him of plunging Egypt deeper into crisis by refusing to postpone the vote on a constitution shaped by Islamists.

"We are against this process from start to finish," Hussein Abdel Ghani, spokesman of the National Salvation Front, told a news conference, calling for more street protests on Tuesday.

The Front's main leaders - Nobel peace laureate Mohamed ElBaradei, former Foreign Minister Amr Moussa and leftist Hamdeen Sabahy - did not attend the event.

Hundreds of protesters milled around Mursi's palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

"Holding a referendum now in the absence of security reflects haste and an absence of a sense of responsibility on the part of the regime, which risks pushing the country towards violent confrontation," a statement from the Front said.

The Muslim Brotherhood, which propelled Mursi from obscurity to power, urged the opposition to accept the referendum's verdict.

Islamists say the vote will seal a democratic transition that began when a popular uprising toppled Hosni Mubarak 22 months ago after three decades of military-backed one-man rule.

Their liberal, leftist and Christian adversaries say the document being fast-tracked through could threaten freedoms and fails to embrace the diversity of Egypt's 83 million people.

"ACT OF WAR"

Mursi had given some ground on Saturday when he annulled the fiercely contested decree issued on November 22 that gave him extra powers and shielded his decisions from judicial review.

But some measures taken under the decree remain in force and the president has insisted the referendum go ahead on December 15.

Liberal opposition leader Ahmed Said earlier described the race to a referendum as an "act of war" against Egyptians.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Brotherhood spokesman Mahmoud Ghozlan said the scrapping of Mursi's decree had removed any reason for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy".

The cancellation of Mursi's decree, announced after a "national dialogue" on Saturday boycotted by almost all the president's critics, has not bridged a deep political divide.

Prime Minister Hisham Kandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

DIALOGUE

Egypt tipped into turmoil after Mursi grabbed powers to stop any court action aimed at hindering the transition. An assembly led by the Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Opponents, including minority Christians, had already quit the assembly in dismay, saying their voices were being ignored.

After the dialogue hosted by Mursi, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of November 22. He said the referendum could not be delayed for legal reasons.

The decree ignited more than two weeks of sometimes violent protests and counter-rallies in Egypt. Mursi's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely-elected leader.

Islamists reckon they can win the referendum and, once the new constitution is in place, a parliamentary election about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved after Mursi rescinded his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a $4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe". But a military source said these remarks did not herald an army takeover.

(Additional reporting by Edmund Blair and Yasmine Saleh; editing by David Stamp)

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N. Korea replacing faulty rocket stage: report

SEOUL: North Korea is replacing a faulty section of a long-range rocket in a bid to put its launch schedule back on track, and is receiving help from Iranian missile experts, a South Korean newspaper reported Monday.

North Korea had said Sunday it was considering delaying the launch -- slated for some time between December 10-22 -- because of unspecified "problems" uncovered by technicians at its Sohae satellite launch station.

But the Chosun Ilbo newspaper on Monday cited new satellite images that suggested the faulty component was being replaced to allow the launch to go ahead.

"A new third stage of the North's three-stage missile Unha-3 was seen being moved Saturday afternoon from a missile plant... towards the launch site," the newspaper quoted an unidentified government source as saying.

The South's Yonhap news agency quoted a separate government source as saying a component was being moved but that it was unclear what kind.

"We have yet to analyse information that it is a third stage of the rocket or other parts," the Yonhap source said.

North Korea says the rocket launch is a peaceful mission aimed at putting a satellite in orbit.

The United States and its allies view it as a disguised ballistic missile test banned under UN resolutions prompted by the North's nuclear tests in 2006 and 2009.

In a separate report Monday, the Chosun Ilbo -- known for its comprehensive North Korean coverage -- said a group of Iranian missile experts was in North Korea offering technical assistance for the planned launch.

The Iranians were invited after Pyongyang's last rocket launch in April ended in failure, the newspaper said, citing a Seoul government official.

"A car seen at the... launch site has been spotted driving back and forth from the accommodation facility nearby. It is believed to be carrying Iranian experts," the official said.

Earlier this month, Japan's Kyodo news agency quoted a western diplomatic source as saying Iran had stationed defence personnel in North Korea since October to strengthen cooperation in missile and nuclear development.

North Korea and Iran are both subject to international sanctions over their nuclear activities and their governments share a deep hostility towards the United States.

Leaked US diplomatic cables in 2010 showed that US officials believe Iran has acquired ballistic missile parts from North Korea. A 2011 UN sanctions report said the two countries were suspected of sharing ballistic missile technology.

On Sunday, the North's Korean Committee of Space Technology said its scientists were "seriously examining the issue of readjusting the launching time of the satellite for some reasons."

The committee gave no further details, but analysts suggested potential technical troubles. A US think-tank, the US-Korea Institute at Johns Hopkins University, said Friday that preparations may have been delayed by heavy snow.

Some analysts said the new leader, Kim Jong-Un, may have been rushing the event to mark the first anniversary of the death of his father and former leader Kim Jong-Il on December 17.

- AFP/ck

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