AXA, estate of Ma Chi reach deal on compensation

SINGAPORE: The insurers of the Ferrari car involved in a high-speed crash that left two others dead and two injured have reached a settlement with the estate of the deceased driver Ma Chi.

AXA Insurance Singapore and Ma's estate jointly announced that they have mutually agreed on a deal.

They will settle all financial claims between the parties.

All third-party victims or their families will get compensation.

AXA will not look towards the estate of Ma for any payment of compensation made to the third-party victims or their families.

These parties will not make any more claims against each other.

They have also agreed to keep the details of the settlement, including the amount that will be paid, confidential.

In the crash on May 12, 2012, Ma, a 31-year-old Chinese national, is said to have beaten the red light along Victoria Street.

His car hit a taxi, which then hit a motorcycle.

The taxi driver Mr Cheng Teck Hock and his passenger Ms Shigemi Hito died, while two others were injured.

In July, AXA Insurance Singapore notified the family of Ma that it regards the incident as a collision, not an accident.

It won't provide insurance coverage for the family but would settle the claims of third-party victims and then get Ma's family to reimburse it.

The family challenged AXA's stand.

AXA had also asked the injured victims - Mr Muhammad Najib Ghazali, 26, and Ms Wu Weiwei, in her 20s - and the families of Mr Cheng Teck Hock and Ms Shigemi Ito to submit their claims.

- CNA/fa

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Was nervous to narrate 'Midnight's Children': Salman Rushdie

NEW DELHI: Salman Rushdie says it was flattering to get the offer to narrate his own novel 'Midnight's Children' on the big screen but he was "nervous" about spoiling the film.

The Booker-prize-winning author, 65, who has also written the script for the Deepa Mehta directed movie, says the decision to have his voice-over came late.

"I did not decide to become the narrator. It was Deepa's idea. I did not want to do it. We tried to make the film without a narration but it was only when we began assembling the film that we felt a voiceover was needed," Rushdie said at a press meet last night.

"Deepa tried two actors but in the end told me 'you should do it'. It was very flattering but it also made me nervous because I did not want to be the one amateurish thing that spoils the film. I thought if it really embarrasses me, I had the right to fire myself. I went into it with that kind of spirit," Rushdie said at the event, organised by Landmark and PVR.

The making of the film has been an interesting journey in itself and Mehta, who accompanied the author, recalled how they lost a cobra while shooting the film in Sri Lanka.

"We had 12 main characters, thousands of extras, some animals including an elephant and four cobras. Actually, we lost one baby cobra, we found only three. It is still out there somewhere," said Mehta.

The novel is getting a movie adaptation, 30 years after it was first published. Rushdie said that there was another attempt to turn the novel into a film but it did not work out.

The author says he was "pretty ruthless" when it came to removing chunks of the novel to fit the story in two hours.

"There are many parts of the novel and characters which were not essential to the central story. That was the question. What's the essential storyline of the movie?

"It is very difficult with 'Midnight's Children' because, it is deliberately a very digressive novel. We sacrificed a lot of stuff. We had to delete some very good scenes also."

The film starring Satya Bhaba, Siddharth, Shriya Saran, Shabana Azmi, Anupam Kher, Rajat Kapoor, Kulbhushan Kharbanda, Soha Ali Khan and Seema Biswas, will release on February 1.

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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."

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Online:

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

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It's Official: Women Will Serve in Combat

Women will soon be able to serve in combat, as things officially changed with the stroke of a pen today at the Pentagon.

At a joint news conference, Secretary of Defense Leon Panetta and Joint Chiefs of Staff Charman Gen. Martin Dempsey signed a memorandum rolling back a 1994 directive prohibiting women from doing so.

"They serve, they're wounded, and they die right next to each other," Panetta said of women and men in the military. "The time has come to recognize that reality.

"If they're willing to put their lives on the line, then we need to recognize that they deserve a chance," Panetta said, noting that he wants his own granddaughters and grandsons to have the same opportunities in their lives and careers.

The change won't be immediate, however. While Panetta announced that thousands of new positions will now be open to women, he has asked the military branches to submit plans by May on how to integrate women into combat operations. He set a January 2016 deadline for branches to implement the changes, giving military services time to seek waivers for certain jobs.

Both Panetta and Dempsey said they believe the move will strengthen the U.S. military force.

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"Ultimately, we are acting to strengthen the armed forces," Dempsey said. "We will extend opportunities to women in a way that maintains readiness, morale and unit cohesion."

Women have already served in combat in Iraq and Afghanistan, as ABC News' Martha Raddatz and Elizabeth Gorman reported in 2009: Prohibited from serving in roles "whose primary mission is to engage in direct combat on the ground," women in support roles, nonetheless, served in support roles on the frontlines, where they have fought, been wounded and died.

Women have also flown combat missions since 1993 and have served on submarines since 2010.

Panetta noted that 152 women have died serving in the U.S. military in Iraq and Afghanistan. Dempsey said he realized a change was inevitable when he noticed two female turret gunners protecting a senior military officer.

"It's clear to all of us that women are contributing in unprecedented ways to the military's mission of defending the nation," Panetta said. "Women represent 15 percent of the force of over 200,000 [and] are serving in a growing number of critical roles on and off the battlefield.

"I've gone to Bethesda to visit wounded warriors, and I've gone to Arlington to bury our dead. There's no distincton."

Panetta and Dempsey said President Obama supported the move, while warning them to maintain military readiness as they considered the change.

Obama hailed the move in a written statement

"Today, by moving to open more military positions -- including ground combat units -- to women, our armed forces have taken another historic step toward harnessing the talents and skills of all our citizens," he said.

"This milestone reflects the courageous and patriotic service of women through more than two centuries of American history and the indispensable role of women in today's military," Obama said.

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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.

"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 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.

Its long-range rockets are not seen as capable of reaching the United States mainland and it is not believed to have the technology to mount a nuclear warhead on a long-range missile.

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)

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Dreamliner battery probe rules out voltage surge

TOKYO: Officials probing the emergency landing of a Boeing Dreamliner said Thursday they will dismantle its battery pack, after the investigation found no evidence of a sudden surge in voltage.

A fire risk from overheating powerpacks emerged as a major concern after pilots were forced to land the domestic All Nippon Airways flight in western Japan on January 16 due to smoke thought to be linked to the plane's battery.

Investigators later released a picture showing the blackened remains of the battery in the ANA plane.

But on Thursday, they said there were no signs of a battery fire, while data gleaned from the flight's digital data recorder showed the powerpack did not suffer a rapid surge in voltage.

The pack's voltage, in fact, had been at normal levels before it rapidly plunged just before the system alert that forced the emergency landing, a Japan Transport Safety Board (JTSB) official told AFP.

But he said the pack -- made up of eight individual lithium-ion batteries -- would have to be dismantled to inspect each of the units, which are similar to those used in mobile phones and tablet computers.

"It was a very normal level of voltage for a lithium-ion battery (shortly before the emergency landing)," the official said.

"But you still cannot rule out the possibility that some of the individual batteries might have been overcharged."

Officials from the JTSB and US National Transportation Safety Board (NTSB) would dissect the pack at the offices of Kyoto-based GS Yuasa, the maker of the next-generation aircraft's batteries, he said.

The powerpack's charger would be sent to its US manufacturer for a closer look, investigators said.

Boeing's fuel-efficient planes suffered a series of problems earlier this month, prompting a global alert from the US Federal Aviation Administration that has seen all 50 operational Dreamliners grounded since last week.

An international team, including engineers from French multinational Thales, which designed the Dreamliner's electrical system, carried out a CT scan of the battery unit at a Japan space agency facility in Tokyo this week.

An NTSB-led investigation is also probing the cause of a fire on a Japan Airlines 787 Dreamliner in Boston on January 7.

That investigation has ruled out battery overheating as the cause, but the powerpack's charger and related components were still being tested.

- AFP/ck

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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

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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.

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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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