North Korea threatens war with South over U.N. sanctions

SEOUL (Reuters) - North Korea threatened to attack rival South Korea if Seoul joined a new round of tightened U.N. sanctions, as Washington unveiled more of its own economic restrictions following Pyongyang's rocket launch last month.

In a third straight day of fiery rhetoric, the North directed its verbal onslaught at its neighbor on Friday, saying: "'Sanctions' mean a war and a declaration of war against us."

The reclusive North has this week declared a boycott of all dialogue aimed at ending its nuclear program and vowed to conduct more rocket and nuclear tests after the U.N. Security Council censured it for a December long-range missile launch.

"If the puppet group of traitors takes a direct part in the U.N. 'sanctions,' the DPRK will take strong physical counter-measures against it," the North's Committee for the Peaceful Reunification of Korea said, referring to the South.

The committee is the North's front for dealings with the South. DPRK is short for the North's official name, the Democratic People's Republic of Korea.

The U.N. Security Council unanimously condemned North Korea's December rocket launch on Tuesday and expanded existing U.N. sanctions.

On Thursday, the United States slapped economic sanctions on two North Korean bank officials and a Hong Kong trading company that it accused of supporting Pyongyang's proliferation of weapons of mass destruction.

The company, Leader (Hong Kong) International Trading Ltd, was separately blacklisted by the United Nations on Wednesday.

Seoul has said it will look at whether there are any further sanctions that it can implement alongside the United States, but said the focus for now is to follow Security Council resolutions.

The resolution said the council "deplores the violations" by North Korea of its previous resolutions, which banned Pyongyang from conducting further ballistic missile and nuclear tests and from importing materials and technology for those programs. It does not impose new sanctions on Pyongyang.

The United States had wanted to punish North Korea for the rocket launch with a Security Council resolution that imposed entirely new sanctions against Pyongyang, but Beijing rejected that option. China agreed to U.N. sanctions against Pyongyang after North Korea's 2006 and 2009 nuclear tests.

NUCLEAR TEST WORRY

North Korea's rhetoric this week amounted to some of the angriest outbursts against the outside world coming under the leadership of Kim Jong-un, who took over after the death of his father Kim Jong-il in late 2011.

On Thursday, the North said it would carry out further rocket launches and a nuclear test, directing its ire at the United States, a country it called its "sworn enemy".

U.S. Defense Secretary Leon Panetta said the comments were worrying.

"We are very concerned with North Korea's continuing provocative behavior," he said at a Pentagon news conference.

"We are fully prepared ... to deal with any kind of provocation from the North Koreans. But I hope in the end that they determine that it is better to make a choice to become part of the international family."

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

South Korea and others who have been closely observing activities at the North's known nuclear test grounds believe Pyongyang is technically ready to go ahead with its third atomic test and awaiting the political decision of its leader.

The North's committee also declared on Friday that a landmark agreement it signed with the South in 1992 on eliminating nuclear weapons from the Korean peninsula was invalid, repeating its long-standing accusation that Seoul was colluding with Washington.

The foreign ministry of China, the North's sole remaining major diplomatic and economic benefactor, repeated its call for calm on the Korean peninsula at its daily briefing on Friday.

"The current situation on the Korea peninsula is complicated and sensitive," spokesman Hong Lei said.

"We hope all relevant parties can see the big picture, maintain calm and restraint, further maintain contact and dialogue, and improve relations, while not taking actions to further complicate and escalate the situation," Hong said.

But unusually prickly comments in Chinese state media on Friday hinted at Beijing's exasperation.

"It seems that North Korea does not appreciate China's efforts," said the Global Times in an editorial, a sister publication of the official People's Daily.

"Just let North Korea be 'angry' ... China hopes for a stable peninsula, but it's not the end of the world if there's trouble there. This should be the baseline of China's position."

(Additional reporting by Michael Martina in Beijing; editing by Jeremy Laurence and Raju Gopalakrishnan)

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ECB chief hails euro relaunch at Davos

DAVOS, Switzerland: The head of the European Central Bank said on Friday that the embattled euro had been relaunched but that more had to be done to boost the eurozone's recession-wracked economy.

Speaking to the world's top business and political leaders at the World Economic Forum in Davos, Mario Draghi also said that austerity measures being taken in crisis-hit countries were "unavoidable" despite the impact on growth.

"If one has to find a common denominator... for defining why 2012 is going to be remembered, I think one would say it's the year of the relaunching of the euro," Draghi said in his well-attended and hotly anticipated speech.

Draghi outlined three "extraordinary" steps taken by European leaders and institutions to battle the three-year sovereign debt crisis that has pitched the 17-nation bloc into recession.

Governments have pushed through structural reforms with "urgency" and these are "now bearing fruit," said the ECB boss.

European leaders had recognised structural flaws inherent in the single currency and were now pushing for greater integration.

And finally, his own institution had undertaken actions that broke the monetary policy mould, including providing one trillion euros ($1.33 trillion) in liquidity for banks.

The ECB also announced a programme to buy the bonds of debt-wracked countries which had proved "very helpful" in reducing the perception that the euro was on the point of collapse, Draghi said.

However, he said it was too early to declare the battle over.

"Are we satisfied for that? I think to say the least, the jury is still out. Because all in all, we haven't seen an equal momentum on the real side of the economy and that's where we will have to do much more," he said.

Nevertheless, Draghi hailed what he called a period of "relative tranquility" on the financial markets and said: "All the indices point to a substantial improvement of financial conditions."

"It is a situation where you have what I called once positive contagion on the financial markets ... but we don't see this being transmitted into the real economy yet," complained the central banker.

He forecast that the euro area economy would "stabilise" at a "very low level of activity" this year, and predicted "a recovery in the second part of the year."

The European Central Bank has forecast the eurozone economy will contract by 0.3 percent this year but rebound to register GDP growth of 1.2 percent in 2014.

Draghi urged governments not to let up on the momentum of reforms just because the pressure from the markets had been reduced.

"We can have a positive development if national governments would persevere in their actions, both in fiscal consolidation but especially now in the field of structural reforms," he said.

Fiscal consolidation - or reducing debt and deficit mountains - was "unavoidable" he stressed, but he acknowledged that raising taxes and cutting spending tended to result in slower economic growth.

Draghi concluded with a plea to the global elite not to underestimate the euro area economy, despite its woes.

Notwithstanding the strife in weaker euro countries like Spain and Greece, the average levels of indicators such as productivity or inflation put the euro area in line with some of the best economies in the world, he said.

"We tend to forget the strength of the euro area economy."

- AFP/de

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Delhi gang rape has left our hearts empty and minds in turmoil, President Pranab Mukherjee says

NEW DELHI: Delhi gang-rape incident has left our hearts empty and minds in turmoil, President Pranab Mukherjee said in his address to the nation on the eve of 64th Republic Day.

Referring to the brutal gang-rape case, the President said, "When we brutalise a woman, we brutalise society".

He said in the death of the victim "we lost more than a valuable life, we lost a dream."

The President also had words of support for the young protesters who took to the streets in large numbers after the shocking incident.

"If young Indians feel outraged, can we blame our youth?" he asked in his address.

"Don't take our friendship for granted"

Sponsorship of terrorism through non-state actors is a matter of deep concern, President Pranab Mukherjee said making it clear to Pakistan that India is ready to offer a hand of friendship but that should not be taken for granted.

The President said in the recent past, serious atrocities on the line of control on Indian troops have been seen, an apparent reference to the beheading of an Indian soldier by Pakistan Army.

"Neighbours may have disagreements; tension can be a subtext of frontiers. But sponsorship of terrorism through non-state actors is a matter of deep concern to the entire nation," he said.

He said India believes in peace on the border and is always ready to offer a hand in the hope of friendship.

"But this hand should not be taken for granted," he said.

(With inputs from PTI)

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

___

Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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Alleged Doctor Killer Had Anger Issues, Friend Says

Jason Smith, the Philadelphia exterminator who police say showed up at the home of Dr. Melissa Ketunuti this week to solve her rodent problem before strangling her, was a problem child as an adolescent, a family friend told ABC News.

The family friend from many years ago, who asked for anonymity, said Smith, 36, had behavior and anger issues, and that he also liked to set things on fire.

After Smith and Ketunuti got into "some kind of argument" in Ketunuti's basement, he struck her, strangled her and set her on fire, according to police.

Smith reportedly admitted to the brutal slaying after hours of police questioning Wednesday night.
Smith told police that Ketunuti had "belittled" him, sources told ABC News affiliate WPVI-TV in Philadelphia

He snapped and apparently tried to hide any evidence by setting the 35-year-old doctor on fire with paper he lit in the kitchen, the station reported.

Philadelphia Police Department/AP Photo

Pa. Doctor Killing: Person of Interest in Custody Watch Video

Philadelphia Doctor's Murder Leaves Police Baffled Watch Video

"People like Mr. Smith basically walk around with a huge chip on their shoulder, and they feel so inadequate and so insecure that any perceived belittlement of them will set them off," ABC News consultant and former FBI agent Brad Garrett said.

Capt. James Clark of the Philadelphia Police Department said Smith's mood and clarity varied during his alleged confession.

"At some points, he was solemn. At other points, it was like he was in a fog," Clark said at a news conference.

Smith has been charged with murder, arson, abuse of a corpse and risking a catastrophe.

Ori Feibush, who owns a coffee shop near Ketunuti's street, said he and police pored over hours of surveillance video until they saw Ketunuti walking home from doing errands, with Smith steps behind her.

"Forty-five minutes later, we see this same guy walking past, but [he] looks a little more disheveled and he's got gloves on," Feibush told ABC News.

Police say that after the slaying, Smith circled Ketunuti's block twice, before heading off to another job.

Ketunuti was a doctor at the Children's Hospital of Philadelphia and had lived alone in the Graduate Hospital neighborhood of the city for about three years. Her family released a statement saying they are "devastated by this senseless act of violence."

"Melissa's friends from childhood, college, residency and elsewhere remember her many kindnesses, even during long hours, as well as her zest for life: traveling, running and spending time with friends and family," the statement said. "Melissa was a source of joy to everyone in her life. Her passing has left an enormous gap in our lives."

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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Taiwanese gets life sentence for election rally shooting

TAIPEI: Taiwan's supreme court ruled on Thursday that a man who opened fire at an election rally, killing one person and injuring a politician's son, must serve a life sentence.

The top court confirmed a decision last year by the high court, which convicted Lin Cheng-wei, 48, of attempted murder and illegal possession of firearms and sentenced him to life.

The high court had increased a 24-year sentence passed by a district court.

Lin, who had a criminal record, was arrested at the scene after opening fire at a campaign rally of the ruling Kuomintang (KMT) party in November 2010 near Taipei.

Lin claimed he had intended to shoot a KMT candidate with whom he had a personal dispute, but that he accidentally shot Sean Lien -- son of former vice-president Lien Chan -- in the face while he was on the stage.

Lien denied Lin's claim, insisting he himself was the target.

A man in the crowd was hit by the same bullet and died on the spot, only hours before voters went to the polls in local elections.

Lien was rushed to hospital for emergency surgery and released after ten days of treatment.

The incident revived painful memories of another election-eve shooting in 2004, when then-president Chen Shui-bian and his deputy Annette Lu were shot while campaigning for re-election.

Critics alleged that the 2004 shooting was staged to win sympathy for Chen, who eventually won by a razor-thin margin in a disputed election that plunged the island into political turmoil for months.

- AFP/xq

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Cabinet clears extradition treaty with Bangladesh

NEW DELHI: The government on Thursday approved the extradition treaty with Bangladesh proposed to be signed during home minister Sushilkumar Shinde's visit to Dhaka beginning Monday.

The long-awaited treaty was cleared by the Cabinet at its meeting, presided by Prime Minister Manmohan Singh, after Bangladesh government made minor modifications in the draft.

The extradition treaty is expected to pave the way for deportation of jailed Ulfa "general secretary" Anup Chetia and many other insurgents from the northeast who have been hiding in Bangladesh.

Similarly, it will also help Dhaka in getting back its criminals who are currently lodged in Indian jails.

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AP Interview: UN wants better family planning

DAVOS, Switzerland (AP) — The U.N.'s top population official wants governments to do more to ensure that women have access to family planning.

The U.N. says the world will add a billion people to its current population of some 7 billion within a decade, further straining the planet's resources.

Babatunde Osotimehin, executive director of the U.N. Population Fund, says more than 220 million women in the developing world want family planning but aren't getting it.

Speaking to The Associated Press at the World Economic Forum in Davos, he said many women want to have fewer children and that "30 percent of those who die giving birth we can prevent with family planning."

He also called for providing girls with "comprehensive sexuality education."

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N. Korea Vows More Nuke Tests Targeting U.S.

In a bellicose statement singling out the United States as the "sworn enemy" of the Korean people, North Korea today announced plans for a third nuclear test and continued rocket launches.

The move is seen as a disappointment to those who hoped the country's new leader, Kim Jong-Un, might take a less aggressive path than his predecessor and father, Kim Jong-il.

It is also seen as a direct challenge to President Obama and South Korea's newly elected president, Park Geun-hye, who takes office next month.

The statement from North Korea's National Defense Commission read:

"Settling accounts with the U.S. needs to be done with force, not with words as it regards jungle law as the rule of its survival."

The renewed threats come in response to the U.S. backed resolution tightening sanctions against North Korea after its December rocket launch.

At that time, North Korea repeatedly insisted that the launch was simply part of its peaceful space program. The recent statement made no mention of that.

It read: "We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States."

South Korean officials analyzed debris from the December launch that, they say, indicates North Korea built and tested crucial components for a missile that can fly further than 6,200 miles.

Analysts say that preparations at the Pungyee test site in northeastern North Korea are underway and that a new underground test could take place on short notice.

Within the international monitoring community it is not believed that North Korea currently has the capability to launch a long-range rocket with the capacity to reach the United States or the technology to mount a nuclear warhead on a long-range missile. But the U.S. is not pleased with North Korea's plans. Glyn Davies, the top U.S. envoy to the region, said in Seoul, "We hope they don't do it. We call on them not to do it."

China, North Korea's main ally in the region, is also urging restraint. China backed the U.S. resolution at the United Nations and today the Foreign Ministry cautioned North Korea not to take further steps to increase tension.

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