Kashmir border tension hits local ski season

SRINAGAR: A recent flare-up in tensions between India and Pakistan along the de facto border of Kashmir has hit the local ski season, with hoteliers reporting a surge of cancellations by anxious tourists.

Gulmarg, the region's main resort on the Indian side of the divided Himalayan region, is popular with daredevil skiers mostly from Asia and Europe who come in search of deep powder snow and untouched slopes.

The region's tourism industry, a vital part of the local economy, has been devastated by two decades of blood-letting during a separatist conflict, but a dramatic fall in violence in recent years has seen a widely welcomed revival.

"I received 150 cancellations in a matter of days all due to the LoC (line of control) tension and had to pay heavy cancellation charges to hoteliers," Ayaz Zargar, a local travel operator said.

"I hear from other operators that up to 40 percent of advance bookings have been cancelled," he added.

The flare-up along the line of control that divides Kashmir between India and Pakistan saw a total of five soldiers killed earlier this month, with fears that tensions between the two countries could escalate.

A ceasefire agreement on January 16 between commanders in both armies has held, however, with politicians on both sides seen as keen to avoid wrecking recent progress in their slow-moving peace process.

"Cancellation of earlier bookings via email started pouring in as soon as the news of fighting at the LoC started appearing in the media," said Tahir Hussain, the manager of Hotel Hilltop in Gulmarg.

Before the border tension, the number of foreign arrivals in the ski resort was slightly higher than in the same period last year, and local tourism officials say they are still confident of a good year.

"We expect this year to be much better than the last in terms of foreign tourist arrivals," said Talat Parvez, the director of tourism in the local government.

Gulmarg has one of the world's highest ski lifts, which ascends to nearly 4,000 metres (about 14,000 feet) and offers skiers a downhill run of more than five kilometres (three miles).

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Women have caught up to men on lung cancer risk


Smoke like a man, die like a man.


U.S. women who smoke today have a much greater risk of dying from lung cancer than they did decades ago, partly because they are starting younger and smoking more — that is, they are lighting up like men, new research shows.


Women also have caught up with men in their risk of dying from smoking-related illnesses. Lung cancer risk leveled off in the 1980s for men but is still rising for women.


"It's a massive failure in prevention," said one study leader, Dr. Michael Thun of the American Cancer Society. And it's likely to repeat itself in places like China and Indonesia where smoking is growing, he said. About 1.3 billion people worldwide smoke.


The research is in Thursday's New England Journal of Medicine. It is one of the most comprehensive looks ever at long-term trends in the effects of smoking and includes the first generation of U.S. women who started early in life and continued for decades, long enough for health effects to show up.


The U.S. has more than 35 million smokers — about 20 percent of men and 18 percent of women. The percentage of people who smoke is far lower than it used to be; rates peaked around 1960 in men and two decades later in women.


Researchers wanted to know if smoking is still as deadly as it was in the 1980s, given that cigarettes have changed (less tar), many smokers have quit, and treatments for many smoking-related diseases have improved.


They also wanted to know more about smoking and women. The famous surgeon general's report in 1964 said smoking could cause lung cancer in men, but evidence was lacking in women at the time since relatively few of them had smoked long enough.


One study, led by Dr. Prabhat Jha of the Center for Global Health Research in Toronto, looked at about 217,000 Americans in federal health surveys between 1997 and 2004.


A second study, led by Thun, tracked smoking-related deaths through three periods — 1959-65, 1982-88 and 2000-10 — using seven large population health surveys covering more than 2.2 million people.


Among the findings:


— The risk of dying of lung cancer was more than 25 times higher for female smokers in recent years than for women who never smoked. In the 1960s, it was only three times higher. One reason: After World War II, women started taking up the habit at a younger age and began smoking more.


—A person who never smoked was about twice as likely as a current smoker to live to age 80. For women, the chances of surviving that long were 70 percent for those who never smoked and 38 percent for smokers. In men, the numbers were 61 percent and 26 percent.


—Smokers in the U.S. are three times more likely to die between ages 25 and 79 than non-smokers are. About 60 percent of those deaths are attributable to smoking.


—Women are far less likely to quit smoking than men are. Among people 65 to 69, the ratio of former to current smokers is 4-to-1 for men and 2-to-1 for women.


—Smoking shaves more than 10 years off the average life span, but quitting at any age buys time. Quitting by age 40 avoids nearly all the excess risk of death from smoking. Men and women who quit when they were 25 to 34 years old gained 10 years; stopping at ages 35 to 44 gained 9 years; at ages 45 to 54, six years; at ages 55 to 64, four years.


—The risk of dying from other lung diseases such as emphysema and chronic bronchitis is rising in men and women, and the rise in men is a surprise because their lung cancer risk leveled off in 1980s.


Changes in cigarettes since the 1960s are a "plausible explanation" for the rise in non-cancer lung deaths, researchers write. Most smokers switched to cigarettes that were lower in tar and nicotine as measured by tests with machines, "but smokers inhaled more deeply to get the nicotine they were used to," Thun said. Deeper inhalation is consistent with the kind of lung damage seen in the illnesses that are rising, he said.


Scientists have made scant progress against lung cancer compared with other forms of the disease, and it remains the leading cause of cancer deaths worldwide. More than 160,000 people die of it in the U.S. each year.


The federal government, the Canadian Institutes of Health Research, the Bill and Melinda Gates Foundation, the cancer society and several universities paid for the new studies. Thun testified against tobacco companies in class-action lawsuits challenging the supposed benefits of cigarettes with reduced tar and nicotine, but he donated his payment to the cancer society.


Smoking needs more attention as a health hazard, Dr. Steven A. Schroeder of the University of California, San Francisco, wrote in a commentary in the journal.


"More women die of lung cancer than of breast cancer. But there is no 'race for the cure' for lung cancer, no brown ribbon" or high-profile advocacy groups for lung cancer, he wrote.


Kathy DeJoseph, 62, of suburban Atlanta, finally quit smoking after 40 years — to qualify for lung cancer surgery last year.


"I tried everything that came along, I just never could do it," even while having chemotherapy, she said.


It's a powerful addiction, she said: "I still every day have to resist wanting to go buy a pack."


___


Online:


American Cancer Society: http://www.cancer.org


National Cancer Institute: http://www.cancer.gov/cancertopics/tobacco/smoking and http://www.cancer.gov/cancertopics/types/lung


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


___


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


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Pentagon to Allow Women in Combat













Defense Secretary Leon Panetta will lift a longstanding ban on women serving in combat, according to senior defense officials.


The services have until this May to come up with a plan to implement the change, according to a Defense Department official.


That means the changes could come into effect as early as May, though the services will have until January 2016 to complete the implementation of the changes.


"We certainly want to see this executed responsibly but in a reasonable time frame, so I would hope that this doesn't get dragged out," said former Marine Capt. Zoe Bedell, who joined a recent lawsuit aimed at getting women on the battlefield.


The military services also will have until January 2016 to seek waivers for certain jobs -- but those waivers will require a personal approval from the secretary of defense and will have to be based on rationales other than the direct combat exclusion rule.


The move to allow women in combat, first reported by the Associated Press, was not expected this week, although there has been a concerted effort by the Obama administration to further open up the armed forces to women.


The Joint Chiefs of Staff unanimously recommended in January to Secretary Panetta that the direct combat exclusion rule should be lifted.


"I can confirm media reports that the secretary and the chairman are expected to announce the lifting of the direct combat exclusion rule for women in the military," said a senior Defense Department official. "This policy change will initiate a process whereby the services will develop plans to implement this decision, which was made by the secretary of defense upon the recommendation of the Joint Chiefs of Staff."


Chairman of the Joint Chiefs Gen. Martin Dempsey sent Panetta a memo earlier this month entitled, "Women in Service Implementation Plan."






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"The time has come to rescind the direct combat exclusion rule for women and to eliminate all unnecessary gender-based barriers to service," the memo read.


"To implement these initiatives successfully and without sacrificing our warfighting capability or the trust of the American people, we will need time to get it right," he said in the memo, referring to the 2016 horizon.


Women have been officially prohibited from serving in combat since a 1994 rule that barred them from serving in ground combat units. That does not mean they have been immune from danger or from combat.


As Martha Raddatz reported in 2009, women have served in support positions on and off the frontlines in Iraq and Afghanistan, where war is waged on street corners and in markets, putting them at equal risk. Hundreds of thousands of women deployed with the military to those two war zones over the past decade. Hundreds have died.


READ MORE: Female Warriors Engage in Combat in Iraq, Afghanistan


"The reality of the battlefield has changed really since the Vietnam era to where it is today," said Rep. Tammy Duckworth, D-Ill., a former military helicopter pilot who lost both her legs in combat. "Those distinctions on what is combat and what is not really are falling aside. So I think that after having seen women, men, folks who -- cooks, clerks, truck drivers -- serve in combat conditions, the reality is women are already in combat."


Woman have been able to fly combat sorties since 1993. In 2010, the Navy allowed them on submarines. But lifting restrictions on service in frontline ground combat units will break a key barrier in the military.


READ MORE: Smooth Sailing for First Women to Serve on Navy Submarines


READ MORE: Female Fighter Pilot Breaks Gender Barriers


Panetta's decision will set a January 2016 deadline for the military service branches to argue that there are military roles that should remain closed to women.


In February 2012 the Defense Department opened up 14,500 positions to women that had previously been limited to men and lifted a rule that prohibited women from living with combat units.


Panetta also directed the services to examine ways to open more combat roles to women.


However, the ban on direct combat positions has remained in place.






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Cameron promises Britons straight choice on EU exit


LONDON (Reuters) - Prime Minister David Cameron promised on Wednesday to give Britons a straight referendum choice on whether to stay in the European Union or leave, provided he wins an election in 2015.


Cameron ended months of speculation by announcing in a speech the plan for a vote sometime between 2015 and 2018, shrugging off warnings that this could imperil Britain's diplomatic and economic prospects and alienate its allies.


Cameron said Britain did not want to pull up the drawbridge and retreat from the world but that public disillusionment with the EU is at "an all-time high".


"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said. His Conservative party would campaign for the 2015 election promising to renegotiate Britain's EU membership.


"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."


Whether Cameron will ever hold the referendum remains as uncertain as the Conservatives' chances of winning the next election due in 2015.


They trail the opposition Labour party in opinion polls, and the coalition government is pushing through painful public spending cuts to try to reduce Britain's large budget deficit, likely to upset voters in the meantime.


Cameron's promise looks likely to satisfy much of his own party, which has been split on the issue, but may create uncertainty when events could put his preferred option - a looser version of full British membership - out of reach.


The move may also unsettle other EU states, such as France and Germany. European officials have already warned Cameron against treating the bloc as an "a la carte menu" from which he can pick and choose membership terms.


His speech in London is also likely to raise concerns in the United States, a close ally, which has said it wants Britain to remain inside the EU with "a strong voice".


Nor is it likely to help heal rifts with his pro-European Liberal Democrat junior coalition partners.


Cameron said he would prefer Britain, the world's sixth biggest economy, to remain inside the 27-nation EU but he also made clear he believes the EU must be radically reformed.


A new EU must be built upon five principles, he said: competitiveness, flexibility, power flowing back to - not just away from - member states, democratic accountability and fairness.


The euro zone debt crisis is a main reason why Britain must reassess its relationship with the wider EU, Cameron said, adding that ever closer union was not Britain's objective.


"WAFER THIN" CONSENT


Cameron said the EU faced three main problems: the debt crisis, competitiveness and faltering public support.


Democratic consent for the EU in Britain was now "wafer thin", reflecting the results of many opinion polls that have shown a slim majority would vote to leave the bloc and the rise of the UK Independence Party that favors complete withdrawal.


"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union," said Cameron. "But the question mark is already there: ignoring it won't make it go away."


Avoiding a referendum would make an eventual British exit more likely, not less, he said. This would risk bottling up resentment towards the EU, compounding people's feeling that "the EU is heading in a direction that they never signed up to".


"Simply asking the British people to carry on accepting a European settlement over which they have had little choice is a path to ensuring that when the question is finally put - and at some stage it will have to be - it is much more likely that the British people will reject the European Union."


Many Britons resent the EU's interference in their daily lives and its "unnecessary rules and regulations", he added.


Cameron's speech has been marked by long delays, diplomatic rows and the postponement due to the Algerian hostage crisis.


"The Curse of TutanCameron's Europe speech" was how one political magazine summed up the repeated delays in a headline over a picture of a golden-faced Cameron superimposed on the death mask of ancient Egyptian pharaoh Tutankhamen.


(Editing by Guy Faulconbridge and Peter Graff)



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Malaysia citizenship-for-votes probe stirs outrage






KUALA LUMPUR: For years, charges have swirled that a secret Malaysian scheme gave citizenship to huge numbers of illegal migrants in a politically important state in exchange for votes for the ruling coalition.

Now, an inquiry is finally airing detailed allegations that have the government on the defensive ahead of elections that pose the greatest threat yet faced by the ruling bloc that has controlled Malaysia for 56 years.

A Royal Commission of Inquiry opened last week with ex-officials admitting they gave citizenship to Filipinos and Indonesians in resource-rich Sabah, one of two Malaysian states on Borneo island.

One former official said some 100,000 identity cards (ICs) were handed out in 1993 ahead of a crucial state election, Malaysian news reports said. Another admitted signing hundreds of thousands of ICs in the 1990s.

The testimony has revived accusations of treason against former prime minister Mahathir Mohamad, who is alleged to have masterminded the scheme to shore up support for his government.

As head of the ruling Barisan Nasional (BN) coalition, Mahathir dominated Malaysia for 22 years until he resigned in 2003.

Current prime minister Najib Razak is now battling to rally support for the BN ahead of polls he is expected to call within months, in an era when the coalition's power grip has slipped.

But outrage over "Project IC", as the alleged scheme is widely known, is undercutting his claims that the national electoral roll is free of fraud.

The opposition and election-reform advocates allege massive fraud in voter rolls nationwide and have seized on the testimony as proof of government vote-tampering.

"What we are concerned about is that this is still going on. That's what we want to stop," Ambiga Sreenevasan, head of the clean-elections activist coalition known as "Bersih", or "Clean", told a press conference on Tuesday.

The outlines of "Project IC" have been whispered about for three decades and have bolstered the view of Sabah as a reliable "fixed deposit" of votes for the BN to help it weather challenges elsewhere.

The government allegedly targeted Muslims from neighbouring Indonesia and the predominantly Muslim southern Philippines.

More than half of Malaysia's 29 million people are Muslim ethnic Malays, but indigenous tribes, many of them Christian, predominate in Sabah.

They have bridled at the foreigners, blaming them for crime, drug abuse and economic competition, and alleging their homeland was being stolen.

Najib last June gave in to calls for an inquiry, but the move could backfire, said Ibrahim Suffian, head of independent polling firm Merdeka Centre, calling the revelations "explosive".

"It probably will create a wave of resentment and dissatisfaction among native Sabah voters. This confirms their worst fears," he said.

The population of Sabah, a region of rugged mountains and powerful rainforest rivers that is about the size of Ireland, has surged from some 600,000 citizens in 1970 to more than three million -- more than double the national growth rate.

Malaysia's opposition alleges some 700,000 may have illegally received ICs. A one-time battleground state, Sabah has been pro-BN since the mid-1990s.

The once all-powerful BN suffered a shock setback in 2008 national elections, and analysts predict a close fight with a formidable opposition led by Anwar Ibrahim, a former deputy premier, raising fears that government fraud could play a role.

Najib insists the national electoral system is clean and has highlighted recent reforms such as plans to use indelible ink to prevent multiple voting.

"Let the commission do its work and find out," Najib was quoted as saying by state media, warning against a rush to judgement in Sabah.

Mahathir, still a vocal and influential conservative figure, has denied the existence of "Project IC," but admitted at a press conference last week that foreigners in Sabah were given citizenship, saying no laws were broken.

No one has yet directly implicated him before the commission, but witnesses said last week they were directed by officials close to Mahathir. There has been no testimony yet suggesting "Project IC" was still active.

Hearings will continue for weeks, with some 170 witnesses expected to testify. The commission has until late March to investigate.

The commission's final recommendations are not legally binding, but could lead to pressure for a crackdown on illegals.

- AFP/xq



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BJP to hold countrywide protests against Shinde's remarks

NEW DELHI: The BJP will hold countrywide protests from Thursday against home minister Sushilkumar Shinde's "Hindu terror" remarks, Rajnath Singh said after being elected as the party president on Wednesday.

"The recent statement of Shinde shows the government is not serious on its fight against terrorism," Rajnath Singh said, addressing party workers here.

"Just for vote bank politics, they are poisoning the atmosphere of the nation with communalism. We condemn the statement," he said.

He said the Bharatiya Janata Party (BJP) would hold countrywide protests against Shinde's comments.

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Flu season fuels debate over paid sick time laws


NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.


A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.


"It's a balancing act" between physical health and financial well-being, she said.


An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.


Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.


Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.


The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.


Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.


But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.


Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."


"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.


Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.


To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.


"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.


Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.


Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.


In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.


The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.


Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.


While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.


"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."


___


Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.


___


Follow Jennifer Peltz at http://twitter.com/jennpeltz


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Al Qaeda Commander Killed for the 3rd Time












The second in command of al Qaeda's Yemen affiliate was reportedly killed in an airstrike in Yemen in December, according to a news report by Arabic television network Al Arabiya, the third time the former Guantanamo detainee has been reported dead since 2010.


According to the report, Said al-Shihri died last month after sustaining severe injuries from a joint U.S.-Yemeni airstrike that targeted a convoy in which he was riding. The al Arabiya account, based on information from "family sources," said that the airstrike left al-Shihri in a coma. He allegedly died soon after and was buried in Yemen.


On Tuesday afternoon, hours after the initial report, a Yemeni government official denied having any information regarding the death of al-Shihri, according to Arabic news site al-Bawaba.


No photos of a body have yet surfaced and no mention of his death has appeared on jihadi forums.
This is the third time al-Shihri, the second in command of al Qaeda in the Arabian Peninsula (AQAP), has been reported killed since 2009. In 2010, the Yemeni government claimed it had captured him. In September 2012, Yemeni news sites reported he was killed in an American drone strike.




PHOTOS: Terrorists Who Came Back from the Grave


READ: Gitmo Detainee turned terror commander killed: Reports


Al-Shihri, a "veteran jihadist," traveled to Afghanistan shortly after the Sept. 11, 2001 terror attacks to fight coalition troops, only to be captured weeks later, according to West Point's Combating Terrorism Center. He was sent to the U.S. prison in Guantanamo Bay, Cuba, where he stayed for six years before being released to Saudi Arabia. There, he entered a so-called "jihadi rehab" program that attempted to turn terrorists into art students by getting them to get "negative energy out on paper," as the program's director told ABC News in 2009.


READ: Trading Bombs for Crayons: Terrorists Get 'Art Therapy'


But just months after he supposedly entered the fingerpainting camp, al-Shihri reappeared in Yemen where he was suspected to have been behind a deadly bombing at the U.S. embassy there.


At the time, critics of the "jihadi rehab" program used al-Shihri as evidence that extremists would just go through the motions in order to be freed.


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Israel goes to polls, set to re-elect Netanyahu


JERUSALEM (Reuters) - Israelis voted on Tuesday in an election widely expected to win Prime Minister Benjamin Netanyahu a third term in office, pushing the Jewish State further to the right, away from peace with Palestinians and towards a showdown with Iran.


Netanyahu has vowed to pursue the settlement of lands seized during the 1967 Middle East war if he stays in power, a policy that would put him at odds with his international partners and worsen already tense ties with U.S. President Barack Obama.


Polls predict Netanyahu's Likud party, which has forged an electoral pact with the ultra-nationalist Yisrael Beitenu group, will take the most seats in the parliamentary election, albeit considerably fewer than they had originally hoped.


"We want Israel to succeed, we vote Likud-Beitenu ... The bigger it is, the more Israel will succeed," Netanyahu said after casting his ballot alongside his wife and two sons.


Some 5.66 million Israelis are eligible to vote, with polling stations staying open until 10 p.m. Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks to wrap up.


No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies onboard to control the 120-seat Knesset.


The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to reach out to the surprise star of the campaign, self-made millionaire Naftali Bennett who heads the far-right Jewish Home party.


Bennett's youthful dynamism has struck a chord amongst Israelis, most of whom no longer believe in the possibility of a Palestinian peace deal, and has eroded Netanyahu's support base.


Surveys suggest he may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday -- 10 less than the two parties won in 2009 when they ran separate lists.


Such a result might embarrass Netanyahu, but would still leave him in pole position to form the next government. Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.


"Even if there more trendy parties, there is one party that has a proven record," he said on Tuesday after voting.


Portraying himself as a natural partner for the prime minister, Bennett has alarmed those who want to see an independent Palestinian state created alongside Israel, by calling for the annexation of chunks of the occupied West Bank.


"I pray to God to give me the power to unite all of Israel and to restore Israel's Jewish soul," Bennett said on Monday at a final campaign appearance before Jerusalem's Western Wall.


However, some political analysts have speculated that Netanyahu might seek to project a more moderate image for Israel on the world stage and look to share power with centrist parties, such as Yesh Atid (There is a Future) - a newly formed group led by former TV host Yair Lapid.


ARAB UPRISING


Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially entered Netanyahu's cabinet, promising to promote peace negotiations with the Palestinians.


U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have laid in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.


Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.


That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.


Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.


Netanyahu has said the turbulence - which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt - shows the importance of strengthening national security.


If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.


Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.


The issue has barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.


One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.


Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.


(This story has been corrected to add dropped word in paragraph four)


(Additional reporting by Ori Lewis, Editing by Peter Graff)



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Wen urges "healthy" devt as China's economy slows






BEIJING: Chinese Premier Wen Jiabao has urged the central bank to promote "healthy" economic development, the government said, after the economy expanded at its slowest pace for 13 years in 2012.

Speaking on a visit to the headquarters of the People's Bank of China, Wen called on the central bank to push financial reform and use monetary policy to support the economy, the government said in a statement late on Monday.

"Financial work is still facing a severe and complicated domestic and overseas environment," Wen was quoted as saying.

"We must make full use of monetary policy for the economy to realise continued healthy development," he said, adding prices should be kept stable.

China's economy, the world's second largest, expanded 7.8 percent last year, the government announced on Friday, in the face of weakness at home and in key overseas markets.

The central bank last cut interest rates in July last year, and has instead used its open market operations to boost liquidity to support the economy as growth flagged in the second half.

Last week, the central bank said it would start carrying out short-term operations to manage liquidity in the money market, which analysts say will give policy-makers more flexibility.

Wen called for more financial reforms, including the long-held goals of further liberalising interest rates and making China's yuan currency freely convertible, but gave no details of such moves.

In June last year, the central bank gave banks more flexibility to set interest rates, effectively introducing greater competition and improving allocation of capital.

China last year also began allowing its tightly-controlled currency to trade in a wider band against the US dollar, on the long march for the yuan to become freely convertible.

But Wen also called for preserving financial stability, suggesting future reforms will continue to be incremental.

Wen is set to step down as premier in March, wrapping up a decade overseeing the government and economy.

Li Keqiang, a member of the ruling Communist Party's powerful Politburo Standing Committee, is touted to replace him amid hopes the new leadership might be more aggressive in promoting economic reforms.

- AFP/al



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