Assad forces take Aleppo village, reopening supply line

BEIRUT (Reuters) - Syrian President Bashar al-Assad's forces seized a village southeast of the city of Aleppo on Friday, reopening a supply line to the country's biggest city where they have been battling rebels for eight months, a monitoring group said.

The Syrian Observatory for Human Rights said the capture of Tel Shghaib marked the last step to creating a land supply route north into Aleppo from Hama province, crucial for Assad's forces who have lost control of part of the main north-south highway.

Rebels say they hold most of the city itself and nearly all the rural hinterland. But they have been unable to achieve a decisive victory and complain that they are outgunned and vulnerable to Assad's air force, artillery and ballistic missiles, which killed dozens of people in Aleppo last week.

The United States pledged direct but non-lethal aid to the rebels at a meeting in Rome on Thursday, disappointing Assad's opponents who had hoped for more tangible military support to tip the balance of forces on the ground.

Activists reported another day of fierce fighting around Aleppo, including the military airport at Nairab, three miles north of Tel Shghaib which Assad's forces retook.

"It's a significant gain for the regime," the British-based Observatory's director Rami Abdelrahman said of the army's push north, which reversed many rebel advances when they moved south into Hama from Aleppo province at the end of last year.

Further east, on the Iraqi frontier, government troops also managed to wrest back control of the Yarubiyah border crossing after insurgents seized it 24 hours earlier, he said.

SYRIA COULD FALL APART

The revolt against Assad, which erupted in March 2011 with mainly peaceful protests, has escalated into civil war between mainly Sunni Muslim forces and troops and militias loyal to Assad, from the minority Alawite community whose faith derives from Shi'ite Islam.

The United Nations says 70,000 people have been killed, nearly a million have fled the country and millions more have been displaced or need aid.

U.N. Secretary-General Ban Ki-moon said on Friday that Syria, a major Arab state on the fault lines of broader Middle East conflict, would fall apart if the government and rebels keep fighting instead of seeking a negotiated peace.

"This is a very small window of opportunity which we strongly support and encourage them to use that. The opportunity may close soon," Ban said in Geneva.

The government and opposition have both edged away in recent weeks from their previous rejection of dialogue. Foreign Minister Walid al-Moualem said on Monday the government would even talk to armed rebels and opposition coalition leader Moaz Alkhatib has said he is ready to meet Assad's representatives.

But Syrian officials say any serious talks must be on Syrian soil under state control, and have shown no readiness to discuss Assad's departure - the central demand of the opposition. For rebel fighters, who do not answer to exiled civilian opposition leaders, Assad's exit is a precondition for any negotiations.

"I continue to urge the Syrian parties to find their way to the negotiating table. The horrors of the last months and years prove beyond doubt: the military solution in Syria is leading to the dissolution of Syria," Ban said.

He also called on the U.N. Security Council, paralyzed by a standoff between the United States and European allies on one side, pushing for U.N. action against Assad, and Russia and China, who have backed Assad, to unite and address the crisis.

Moscow criticized Thursday's meeting in Rome of largely anti-Assad Western and Arab states for taking positions and steps which "directly encourage extremists" to topple the government by force.

But the Kremlin also said presidents Vladimir Putin and Barack Obama had told their foreign ministers to keep in close touch and seek new initiatives to end Syria's civil war.

U.S. Secretary of State John Kerry said on Thursday Washington would provide non-lethal aid including medical supplies and food to rebel fighters, as well as $60 million to help the civilian opposition provide services including security, education and sanitation.

The European Union said it had amended sanctions on Syria to allow the supply of armored vehicles, non-lethal military equipment and technical aid.

The steps still fell well short of what rebels are looking for - more arms, and prompted the opposition to postpone a Saturday meeting where they had been due to choose a prime minister to head the administration of rebel-held territory.

Alkhatib said he was tired of hearing Western concerns over the growing role of Islamists in the Syrian rebel ranks - one of the main obstacles to greater military support, saying it paled into insignificance alongside the prolonged civilian suffering.

"Many sides...focus (more) on the length of the rebel fighter's beard than they do on the blood of the children being killed," he said, standing next to Kerry after their meeting.

(Additional reporting by Stephanie Nebehay in Geneva and Alissa de Carbonnel in Moscow; Editing by Mark Heinrich)

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Obama to visit Russia in September

WASHINGTON: US President Barack Obama will visit Saint Petersburg for September's G20 summit and will also hold a meeting with President Vladimir Putin at the G8 summit in Northern Ireland in June.

The White House made the announcement Friday after the leaders spoke by phone to discuss the Syria crisis amid testy relations between Russia and the United States, which have deteriorated since Obama's first term.

Russia had hoped that Obama would pay an official visit to the country last year, his first since Putin returned to the presidency, but Washington's ties with Moscow have been uneasy, and the visit never took place.

Obama's announcement means that he will also not travel to Russia before the G20 summit, in another disappointment to the Kremlin.

Washington and Moscow have been especially at odds over Syria, and Russia's role in vetoing UN Security Council action to censure President Bashar al-Assad for his crackdown on an opposition revolt that has killed 70,000 people.

"The two presidents agreed on the need to advance a political transition to end the violence as soon as possible," said a White House statement, referring to Syria.

US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov will continue to work together on the issue following their meeting in Berlin on Tuesday, the White House said.

A statement issued earlier from the Kremlin said that Putin noted the need to end "military activities" in Syria as soon as possible.

Russia also denounced a new US pledge to provide direct aid, but no arms, to Syrian rebel fighters, saying it will fuel more violence in the nearly two-year war.

Despite the tensions, Obama vowed in his State of the Union address in February to work with the Kremlin to reduce both Russian and American stockpiles of nuclear weapons.

Relations between Moscow and Washington have been especially harmed by the Obama administration's criticism of Moscow's deteriorating human rights record under Putin.

There has also been tension over adoptions of Russian orphans by US nationals in recent weeks.

The spat started after the US Congress passed a bill last year targeting Russian officials with sanctions over the prison death of Russian lawyer Sergei Magnitsky.

Russia retaliated with a ban on all US adoptions, saying Russian children in the United States were abused and even murdered by their adoptive parents.

One of Obama's major foreign policy achievements of his first term was a "reset" of relations with Russia engineered with former president Dmitry Medvedev, but the return of Putin has soured the mood.

-AFP/ac

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Anonymous leaks alleged data on BofA execs, surveillance

In its latest salvo against the financial industry, Anonymous claims to have leaked sensitive information related to Bank of America executives and the company's alleged effort to "spy and collect information on private citizens."

Par:AnoIA, a group that identifies itself as the Anonymous Intelligence Agency, said in press release (PDF) yesterday that it had released 14 gigabytes data on hundreds of thousands of executives at companies around the world, including Bloomberg, Thomson Reuters, and TEKSystems, which the hackvisit collective claims was hired last year to spy on hackers and social activists.

The group says the data was not acquired during hack but rather was retrieved from an unsecured server in Israel.

"The source of this release has confirmed that the data was not acquired by a hack but because it was stored on a misconfigured server and basically open for grabs," Par:AnoIA said. "Looking at the data it becomes clear that Bank of America, TEKSystems and others (see origins of reports) gathered information on Anonymous and other activists' movement on various social media platforms and public Internet Relay Chat (IRC) channels."

The documents leaked by Anonymous include "intelligence" reports allegedly compiled by TEKSystems on "daily cyber threats" from around the world and Internet activity related to the Occupy Wall Street movement.

The group said the data retrieved revealed research methodology that was "sloppy, random and valueless."

"Apparently a keyword list was used to match for items of interest on IRC, Twitter and other social media," the press release said. "While the list has over 10,000 entries, only 1,125 keywords seem to be genuine, the rest are simply Wikipedia references."

CNET has contacted Bank of America for comment and will update this report when we learn more.

The data dump comes three weeks after the U.S. Federal Reserve confirmed that one of its internal Web sites had been hacked, a breach that appears to have occurred around the same time that Anonymous published login and private information from more than 4,000 U.S. bank executive accounts.

Bank of America raised the ire of Anonymous in 2010 when it announced that it would no longer process payments for WikiLeaks. Earlier moves by MasterCard, Visa, and PayPal resulted in retaliatory cyber attacks by the hacker group.

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Manning pleads guilty in WikiLeaks case

(CBS News) WASHINGTON - In a surprise Thursday, Army Pfc. Bradley Manning pleaded guilty to ten criminal counts in the biggest leak of classified material in U.S. history. Manning sent files to the website Wikileaks. He still faces trial on more serious charges.

Along with the guilty pleas, Manning gave his first detailed explanation of why he did it.

Reading from a 35-page statement, the Army private said he wanted the world to know the truth about the wars in Iraq and Afghanistan.

Depressed and frustrated by the wars, he used his job as a low-ranking intelligence analyst in Baghdad to download onto a CD hundreds of thousands of classified documents -- pus a few videos, one of which depict a helicopter gunship attack that killed two journalists in Iraq, which he found "troubling" because it showed "delightful bloodlust."

Judge accepts Manning's guilty pleas in WikiLeaks case
Manning's sexual orientation discussed in court

Describing himself as a misfit in the military, Manning told the judge he first contacted The Washington Post but didn't think the reporter took him seriously; then called The New York Times' tip line but never heard back.

He was home on leave during a blizzard, which paralyzed Washington, and left him stranded at his aunt's house when he decided to send the material to WikiLeaks, the website which had a reputation for exposing secrets.

He included a brief note, ending with "Have a good day," and went back to Iraq with "a sense of relief" and "a clear conscience."

Despite pleading guilty to some of the charges, Manning still faces a court martial and possible life sentence for allegedly aiding the enemy.

Prosecution attorneys have said they intend to show that some of the leaked documents were found by Navy SEALs in their raid on Osama bin Laden's hideout. According to a military attorney, the prosecution does not have to prove Manning intended for the documents to end up in enemy hands -- only that he knew it might happen.

Manning testified that no one at WikiLeaks pressured him for more documents and that he knew what he did was wrong.

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Obama Admin to Court: End Calif. Gay Marriage Ban

In a historic argument for gay rights, President Barack Obama on Thursday urged the Supreme Court to overturn California's same-sex marriage ban and turn a skeptical eye on similar prohibitions across the country.

The Obama administration's friend-of-the-court brief marked the first time a U.S. president has urged the high court to expand the right of gays and lesbians to wed. The filing unequivocally calls on the justices to strike down California's Proposition 8 ballot measure, although it stops short of the soaring rhetoric on marriage equality Obama expressed in his inaugural address in January.

California is one of eight states that give gay couples all the benefits of marriage through civil unions or domestic partnership, but don't allow them to wed. The brief argues that in granting same-sex couples those rights, California has already acknowledged that gay relationships bear the same hallmarks as straight ones.

"They establish homes and lives together, support each other financially, share the joys and burdens of raising children, and provide care through illness and comfort at the moment of death," the administration wrote.

Justin Sullivan/Getty Images

The brief marks the president's most expansive view of gay marriage and signals that he is moving away from his previous assertion that states should determine their own marriage laws. Obama, a former constitutional law professor, signed off on the administration's legal argument last week following lengthy discussions with Attorney General Eric Holder and Solicitor General Donald Verrilli.

In a statement following the filing, Holder said "the government seeks to vindicate the defining constitutional ideal of equal treatment under the law."

Obama's position, if adopted by the court, would likely result in gay marriage becoming legal in the seven other states: Delaware, Hawaii, Illinois, Nevada, New Jersey, Oregon and Rhode Island.

In the longer term, the administration urges the justices to subject laws that discriminate on sexual orientation to more rigorous review than usual, as is the case for claims that laws discriminate on the basis of race, sex and other factors.

The Supreme Court has never given gay Americans the special protection it has afforded women and minorities. If it endorses such an approach in the gay marriage cases, same-sex marriage bans around the country could be imperiled.

Friend-of-the-court briefs are not legally binding. But the government's opinion in particular could carry some weight with the justices when they hear oral arguments in the case on March 26.

Despite the potentially wide-ranging implications of the administration's brief, it still falls short of what gay rights advocates and the attorneys who will argue against Proposition 8 had hoped for. Those parties had pressed the president to urge the Supreme Court to not only overturn California's ban, but also declare all gay marriage bans unconstitutional.

Still, marriage equality advocates publicly welcomed the president's legal positioning.

"President Obama and the solicitor general have taken another historic step forward consistent with the great civil rights battles of our nation's history," said Chad Griffin, president of the Human Rights Campaign and co-founder of the American Foundation for Equal Rights, which brought the legal challenge to Proposition 8.

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Polls close in crucial British by-election

LONDON: Polls closed in the southern English town of Eastleigh on Thursday in a by-election for a new member of parliament in a tight contest that threatens serious repercussions for Britain's main parties.

The election pits Prime Minister David Cameron's Conservative Party against its junior coalition partner, the Liberal Democrats, while the anti-EU UK Independence Party (UKIP) is hoping to capitalise on voter disillusionment. First results are expected around 0200 GMT.

The election was sparked by the resignation of disgraced former energy minister Chris Huhne, a Liberal Democrat who has pleaded guilty to trying to avoid a speeding fine.

Nick Clegg, the embattled deputy prime minister and Lib Dem leader, has called it a "two-horse race" between his party and the Conservatives, while UKIP leader Nigel Farage predicted a "big" swing to his party.

The Lib Dems have been damaged by an ongoing sex scandal surrounding the party's former chief executive Chris Rennard, and the vote looks set to cause ructions within an already strained coalition, whatever the result.

On the eve of polling, Cameron urged Conservatives to back candidate Maria Hutchings, who vowed to help "get the country back on its feet" if she won.

But senior Conservative David Davis warned that a loss for the party would place serious doubt over Cameron's leadership of the party.

"If we came third it would be a crisis," Davis told BBC television. "And if it's a close second with UKIP on our tail it will also be uncomfortable."

More than 79,000 people were eligible to vote for one of the 14 candidates, and residents have been subjected to incessant campaigning since the election was called after Huhne's resignation on February 5.

Clegg visited Eastleigh on Wednesday to pledge his support for candidate Mike Thornton, saying he was on the "cusp of a great, great victory".

Addressing supporters at Lib Dems headquarters, Clegg called the race the "most exciting and closely contested by-elections" that he could remember.

Farage backed his candidate, Diane James, to "come up on the rails" and cause a major shock.

"If you gave me evens on us gaining more than 20 percent in this by-election I would have a very big bet," he said. "This is the campaign that has got momentum."

John O'Farrell, the candidate for the main opposition Labour party, is fighting not to finish in fourth place, and said he hoped voters would register their dissatisfaction at living standards by voting for his party.

-AFP/ac

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Man-and-woman Mars trip by 2018? Can you say 'couples counseling'?

An artist's concept of a proposed Mars flyby spacecraft equipped with an inflatable habitat module.

(Credit:
Inspiration Mars)

A wealthy space tourist announced plans today to launch a high-risk manned flight to Mars in 2018, sending a man and a woman on a bare-bones 501-day round-trip flyby, passing just 100 miles above the Red Planet before heading back to Earth.

Dennis Tito, the first private citizen to fly aboard the International Space Station, said he will provide two years of funding to support the Inspiration Mars Foundation, a nonprofit he started to execute the proposed venture. Additional money will be raised from private sources.

"We have 50 years of experience," he told reporters during a news conference. "We can do things a lot faster, we just need a commitment. I'm not worried about getting this done from that standpoint. The vehicles are there, we have time to get it together."

In a statement, Tito said his organization is "engaging the best minds in industry, government, and academia to develop and integrate the space flight systems and to design innovative research, education, and outreach programs for the mission."

"This low-cost, collaborative, philanthropic approach to tackling this dynamic challenge will showcase U.S. innovation at its best and benefit all Americans in a variety of ways."

But building a reliable, affordable spacecraft in five years is just one issue facing mission planners. Spending nearly one-and-a-half years in the weightless environment of space poses a variety of health risks for the two-person crew, along with an increased risk of cancer due to the effects of space radiation.

And then there's the psychological stress associated with extended confinement in a vehicle the size of a motor home.

Homer Hickham, author or "Rocket Boys/October Sky," said in a Twitter posting: "A married couple in a bathroom for 501 days? I love my wife but rather take my cat and some good books."

He joked that a book about the trip might be titled "Murder on the Martian Express."

Homer Hickham, author or "Rocket Boys/October Sky," said in a Twitter posting: "A married couple in a bathroom for 501 days? I love my wife but rather take my cat and some good books."

But Jon Clark, a former NASA flight surgeon whose wife, Laurel Clark, perished in the 2003 Columbia disaster, said exhaustive screening procedures will be used to select candidates with excellent health, technical competence, and psychological stability.

Preflight training and well-established exercise protocols will help offset the effects of prolonged exposure to microgravity, but space radiation remains a major concern. Clark said NASA will not consider a mission that could result in a 3 percent excess cancer mortality rate over a lifetime.

The proposed Mars flyby mission is "in that ballpark," said Clark, who is working with the Inspiration Mars Foundation. "So, the real issue here is understanding the risk in an informed capacity. The crew would understand that. Ultimately, that is going to be the decision based on that informed consent."

Taber MacCallum, the chief technical officer for Inspiration Mars and CEO of Paragon Space Development, said it's "the kind of risk America used to be able to take."

"That's the kind of bold thing we used to be able to do, we don't do that anymore," he said. "We've shirked away from risk. I think just seriously contemplating this mission recalibrates what we believe is a risk worth taking for America."

As for the challenge of developing a manned flyby spaceraft in just five years, MacCallum said "American industry is up to this challenge."

"There are lots of options and ways to get this done," he said. "We have an amazing industrial base and it's about time America stood up and proved to the rest of the world we've got, bar none, the best industrial base in the world. Let's show it to them. Let's do this mission."

The SpaceX Dragon cargo ship as seen from the International Space Station in May. The company is working on a manned version of the capsule, a variant of which might be suitable for the Mars trip.

(Credit:
NASA TV)

The proposed trip would take advantage of a relatively rare alignment between Earth and Mars, allowing a spacecraft to follow a fast "free-return" trajectory.

Assuming a launch on January 5, 2018, the spacecraft could reach Mars in 228 days and simply loop around the planet, using gravity to fling it back toward Earth. The return trip would take 273 days and end with re-entry on May 21, 2019, at a record velocity of 31,000 mph.

The crew would rely on a closed-loop life-support system, recycling water, urine, and sweat using technology similar to that aboard the International Space Station.

While a specific mission architecture has not been established, the two-person crew likely will live and work in an inflatable habitat module attached to the capsule used for launch and entry. The idea is to utilize current technology with a minimum of automation, relying strongly on the crew's ability to operate the spacecraft and make repairs as needed.

Tito said a variety of launch vehicles should be available, including a proposed heavy-lift booster planned by Space Exploration Technologies, or SpaceX. The company also is working on a manned version of its Dragon cargo capsule, a variant of which might be suitable for the Mars trip.

Once on the way to Mars, the crew would not be able to abort and make a quick return to Earth if something went wrong. They would be committed to the full-duration 501-day mission.

MacCallum said mission planners are considering a 1,200-cubic-foot spacecraft, half of which would be filled with food, water, life-support equipment, and spare parts. The crew would have about 600 cubic feet of living space.

Tito did not have a realistic cost estimate, but he said he expected it to be in the range of a robotic Mars mission. NASA's twin Mars Exploration Rovers cost about $400 million each, while the more sophisticated Curiosity rover currently at work on the Red Planet cost some $2.5 billion.

"It uses low-Earth orbit architecture and we're just adapting it, in effect, to a very large Earth orbit that...just happens to go out pretty far," Tito said. "But you're really flying this mission without a propulsion system on the spacecraft, it's in the most simple form.

"Compared to, say, the landing missions, even if you could contemplate what an overall landing mission to Mars might cost or even in today's dollars what the Apollo missions cost, you're talking a factor of a hundred (less). This is really chump change."

Whatever the final price tag of the proposed manned flyby mission, Tito said he welcomed the opportunity to raise money, joking that media rights alone would be worth a fortune.

"Dr. Phil solving their marital problems, it will be great," Tito quipped.

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Supreme Court divided on Voting Rights Act

(CBS News) WASHINGTON -- The Voting Rights Act has been the law of the land for nearly half a century, helping to ensure that minorities are not denied the right to vote. On Wednesday, Shelby County, Ala., challenged the law at the Supreme Court.

The arguments sharply divided the justices: The court's conservative majority appeared poised to strike down at least part of the act and eliminate the current federal oversight of voting in the South.

At issue is a decades-old provision in the law that requires nine states, mostly in the South, to get approval from the federal government before changing voting laws or procedures.

Justice Antonin Scalia called it a "racial entitlement."

Chief Justice John Roberts asked if the government believed "the citizens in the South are more racist than citizens in the North." Roberts said current data on voter turnout revealed more problems in Massachusetts than in Mississippi.

Congress did not rely on current data when, in 2006, it reauthorized the Voting Rights Act. It continued to rely on rates of minority voter registration and turnout in the elections of 1964, 1968 and 1972.

Will the Voting Rights Act survive the Supreme Court?
Proposed changes to Voting Rights Act stir controversy in Alabama

Alabama attorney Frank Ellis said Congress should look at the modern-day South.

Frank Ellis

/

CBS News

"We ask for some recognition that we and these other converted jurisdictions have made great strides over the last 48 years," Ellis said.

The liberal justices strongly defended the law, saying Congress had thousands of pages of evidence documenting discrimination.

"Discrimination is discrimination, and what Congress said is it continues," Justice Sonia Sotomayor said.

Justice Stephen Breyer said, "The disease is still there ... it's gotten a lot better, a lot better, but it's still there."

Debo Adegbile

/

CBS News

That's why civil rights attorney Debo Adegbile said the provision is as necessary today as a generation ago.

"The problems are much more serious, much more repetitive, there is a much greater continuity in certain places than others," Adegbile said.

The liberal justices -- and the Obama administration -- say the court should defer to Congress, which they say is was better situated to make judgments about discrimination in voting. But based on the arguments today, it does appear a majority of the conservative judges are ready to tell Congress it's going to have to make some changes in that law.

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Holder Says Sequester Makes America Less Safe

The looming budget sequestration will make Americans less safe, Eric Holder says—and anyone who says otherwise isn't telling the truth.

"This is something that is going to have an impact on the safety of this country," the U.S. attorney general told ABC's Pierre Thomas on Wednesday in a wide-ranging, exclusive interview.

"And anybody that says otherwise is either lying or saying something that runs contrary to the facts," Holder said.

In his interview with ABC News, Holder reiterated warnings that if automatic spending cuts are triggered on Friday, the Justice Department will be handicapped in some of its most vital missions to prevent terrorist attacks and crime.

"The Justice Department is going to lose nine percent of its budget between now and September 30th. We're going to lose $1.6 billion. There are not going to be as many FBI agents, ATF agents, DEA agents, prosecutors who are going to be able to do their jobs," Holder said. "They're going to be furloughed. They're going to spend time out of their offices, not doing their jobs."

Portions of the interview will air Wednesday, February 27 on "ABC World News"

Patrick Semansky/AP Photo

Eric Holder Says Homegrown Terror Threat Equals International: Exclusive Watch Video

Eric Holder Remembers Newtown, His Worst Day on the Job: Exclusive Watch Video

President Obama's Cabinet members have been warning for weeks that budget sequestration, which will begin Friday unless Obama and Republicans reach a deficit-reduction deal to avoid it, will leave their agencies shorthanded and could bring about disastrous consequences. Homeland Security Secretary Janet Napolitano and Transportation Secretary Ray LaHood have both appeared at the White House press briefing room to warn that furloughs for border-patrol agents, TSA agents and air-traffic controllers will mean weakened border and port security, longer waits in airport security lines, and logjammed air travel.

Holder, for his part, warned in a Feb. 1 letter to the Senate Appropriations Committee that cuts to the FBI, the ATF, the U.S. Marshals Service, and U.S. Attorneys would limit the department's capacity to investigate crimes. Cuts at the Bureau of Prisons, Holder wrote, would mean lockdowns and potential violence, with fewer staff members on hand. In a separate letter, FBI Director Robert Mueller warned that counterterrorism operations would be affected, with the possible elimination of some joint terrorism task forces with state and local police. Limited surveillance and slower response times would mean unwatched targets and the possibility that individuals on terrorism watch lists could gain entry to the U.S.

"FBI's ability to proactively penetrate and disrupt terrorist plans and groups prior to an attack would be impacted," Mueller wrote.

To Holder, the problem is simple.

"If you don't have prosecutors and agents doing what we expect them to do, and we won't if this thing actually takes place, we are going to be a nation that is going to be less safe. And that is simple fact," Holder said.

Some Republicans have claimed the Obama administration is exaggerating the sequester's purported consequences as a ploy to campaign for tax hikes. On "Fox News Sunday" this week, Sen. Tom Coburn, R-Okla., posited that federal agencies enjoy enough flexibility to avoid the worst consequences of the cuts.

On Wednesday, Holder acknowledged that the Justice Department will do what it can to avoid compromised security, while maintaining that furloughs can't be avoided.

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Iran upbeat on nuclear talks, West still wary

ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears about its atomic ambitions.

Rapid progress was unlikely with Iran's presidential election, due in June, raising domestic political tensions, diplomats and analysts had said ahead of the February 26-27 meeting in the Kazakh city of Almaty, the first in eight months.

The United States, China, France, Russia, Britain and Germany offered modest sanctions relief in return for Iran curbing its most sensitive nuclear work but made clear that they expected no immediate breakthrough.

In an attempt to make their proposals more palatable to Iran, the six powers appeared to have softened previous demands somewhat, for example regarding their requirement that the Islamic state ship out its stockpile of higher-grade uranium.

Iran's chief nuclear negotiator Saeed Jalili said the powers had tried to "get closer to our viewpoint", which he said was positive.

In Paris, U.S. Secretary of State John Kerry commented that the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.

Iran's foreign minister said in Vienna he was "very confident" an agreement could be reached and Jalili, the chief negotiator, said he believed the Almaty meeting could be a "turning point".

However, one diplomat said Iranian officials at the negotiations appeared to be suggesting that they were opening new avenues, but it was not clear if this was really the case.

Iran expert Dina Esfandiary of the International Institute for Strategic Studies said: "Everyone is saying Iran was more positive and portrayed the talks as a win."

"I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections," she said.

The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the powers' proposals, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see a substantive response from Iran.

"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said.

A senior U.S. official in Almaty said, "What we care about at the end is concrete results."

ISRAELI WARNING

Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.

Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.

Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.

In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".

The official did not describe what was being asked of Iran as a "shutdown" of the plant as Western diplomats had said in previous meetings with Iran last year.

Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.

But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade uranium. Iran says it produces higher-grade uranium to fuel a research reactor.

Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.

In Vienna on Wednesday, a senior U.N. nuclear agency official told diplomats in a closed-door briefing that Iran was technically ready to sharply increase this higher-grade enrichment, two Western diplomats said.

"Iran can triple 20 percent production in the blink of an eye," one of the diplomats said.

The U.S. official in Almaty said the powers' latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.

This appeared to be a softening of a previous demand that Iran ship out its stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.

Iran has often indicated that 20-percent enrichment could be up for negotiation if it received the fuel from abroad instead.

Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.

The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking websites reported.

(Additional reporting by Fredrik Dahl and Yeganeh Torbati in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Louise Ireland)

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