Insight: Congo army debacle at Goma raises specter of betrayal


GOMA, Democratic Republic of Congo (Reuters) - When Congo's government army retreated in panic from the eastern city of Goma last month, many observers blamed the poor morale and leadership, ill discipline and corruption that have sapped its fighting capacity for years.


In the hours before Goma fell to M23 rebels on November 20, drunk and terrified Congolese soldiers roamed the streets or huddled in doorways before melting away, witnesses said.


M23's 11-day occupation of the city was one of the worst battlefield defeats for Democratic Republic of Congo's armed forces (FARDC), which at 150,000-strong are among the largest in Africa. They are also backed by 17,000 U.N. peacekeepers.


As recriminations swirl over the Goma defeat, which forced President Joseph Kabila to accept talks with a group he says is a creation of Rwanda, allegations have emerged that betrayal in the army's ranks may have precipitated the rout.


The government has launched an investigation but says it has reached no conclusions; little evidence has come to light beyond anonymous allegations against officers from subordinates who accuse their commanders of selling them out. The general blamed by some denies any such deals with rebels he once commanded.


But the scandal alone shows how deep suspicion runs within an army that has absorbed successive waves of former enemies as a series of civil wars has ended.


One senior FARDC officer who fought the M23 uprising said he believed Goma was lost because of what he called sabotage of the army's fighting capability.


"All of our intelligence was given to M23," the officer alleged, saying that throughout the fighting "there was intense communications with them" from within the government ranks.


Speaking on condition of anonymity because army regulations forbid him from commenting publicly, he said he was convinced former land forces commander, Major General Gabriel Amisi had been in contact with the rebel side. He said he had served alongside the general in the field.


A member of Amisi's military entourage said the general "rejects categorically" allegations of betrayal: "He could never do that, he wants nothing from the rebels," the aide said. "He only just escaped with his life, five of his own men died."


Amisi himself, dressed in colorful robes and sandals, greeted a Reuters reporter at his guarded residence in Kinshasa on Friday. He declined to discuss the allegations. The aide said the general had been ordered by President Kabila not to talk to media about the subject.


An army spokesman, Colonel Olivier Hamuli, said "many factors" led to the debacle, which is being investigated: "As to whether there was treason by General Amisi, I can't say yes or no to that."


Amisi, widely known as "Tango Four" from his old radio call sign, was suspended just days after the rebel capture of the city following a report by U.N. experts alleging he sold weapons to armed groups accused of killing civilians.


TANGLED RELATIONSHIPS


Amisi's ties to a previous, Rwandan-backed eastern rebellion during Congo's 1998-2003 war highlight the confused integration process over the last decade that has seen the FARDC absorb tens of thousands of former rebels and militia fighters.


M23 itself is formed largely of men who were rebels, then were brought into the army and then mutinied again, accusing the Kabila government of breaking a deal signed on March 23, 2009.


Congo's army is widely seen as a symptom of the vast central African nation's dysfunctional state, weakened by years of mismanagement, graft and conflict.


This has produced a security vacuum, particularly in the volatile eastern borderlands, a tinderbox of ethnic conflicts where regional powers and local elites compete for political influence and also for resources of gold, tin and coltan, the latter used in the making of mobile phones.


FARDC spokesman Hamuli said the defeat at Goma was "understandable" because "we were fighting the Rwandan army".


Experts tasked by the U.N. Security Council have issued reports alleging Rwanda, Congo's small but militarily powerful eastern neighbor, created, trained and equipped M23 and directly supported its capture of Goma.


Rwanda has repeatedly dismissed this as "fiction".


M23 fighters withdrew from Goma on December 1 under a deal mediated by regional states. But there is little confidence inside or outside Congo that the city can resist a fresh M23 assault.


"WE WERE ABANDONED"


Reuters journalists who covered the fighting around Goma in November noted the contrast between M23's well-armed fighters, with crisp uniforms and practical rubber gumboots, and the often rag-tag government soldiers, some shod only in flip flops.


M23 rebels showed reporters the abandoned FARDC barracks in Goma - ramshackle buildings littered with fly-infested garbage, where tall marijuana plants grew among military maize plots.


"You see how the Congolese army lived. What kind of army is this?" Amani Kabasha, M23's deputy spokesman, said.


Nevertheless, observers on the ground still struggle to fully explain the abruptness of the army's collapse at Goma.


The FARDC's flight led to MONUSCO peacekeepers choosing not to go on resisting M23's advance. U.N. chiefs rebuffed intense criticism, saying their men could not back an army that was no longer present on the ground.


"They put up a formidable fight the first day, then for reasons we don't understand, they just stopped fighting, turned their backs and left," said Hiroute Guebre Sellassie, who heads the local office of Congo's U.N. peacekeeping force, MONUSCO.


Congo government spokesman Lambert Mende said the inquiry would probe allegations of racketeering and betrayal among the commanders: "Questions of loyalty have regularly been asked, not just about Amisi," he said. "But there has to be proof."


The FARDC officer who denounced Amisi's role highlighted one incident early in the battle for Goma when he says the general ordered his men to stop fighting after inflicting heavy losses on M23 at Kibumba, 30 km (20 miles) north of the city.


"Suddenly we received the order to stop," the officer said.


"It didn't make sense; it just gave them the chance to regroup and pull together a force that went on to take Goma."


Rejecting the allegations on Amisi's behalf, the member of his entourage in Kinshasa blamed the difficulties of fighting a rebel force that, he alleged, was being supported from beyond the border with Rwanda that runs through Goma's suburbs.


"We didn't have the orders to attack Rwanda, even though we were being fired on from there," the aide to Amisi said.


"You saw the morale of our men - everyone was fleeing pell mell. That's when we realized we couldn't hold Goma."


Despite Rwanda's denials of any backing for M23, a Reuters reporter in Goma during the rebel occupation came across several fighters who did not speak local languages, including one who said: "I am Rwandan, a soldier, we're here to help M23.


"There are lots of us and more are coming every day."


REBELS IN THE RANKS


Amisi is a former commanding officer of many of the M23 fighters. He fought with them in an earlier, Rwandan-backed rebellion as a member of the RCD (Congolese Rally for Democracy) during Congo's 1998-2003 civil war that sucked in neighboring states and in which several million people died.


Independent analysts say he has been under suspicion before.


"This is not the first time Amisi has been accused in undermining the army. There is deep suspicion among officers that he has been a fifth columnist for Rwanda," said Jason Stearns, a Congo expert and author who has written a study of M23 for the Rift Valley Institute's Usalama project.


The integration of rebel and militia fighters into the Congolese army was a major plank of the peace accords that ended the last Congo war. This has meant rebel groups often maintaining command structures - and loyalties - once inside the FARDC. That is the case with M23, which includes Tutsi commanders and fighters who participated in a 2004-2009 rebellion led by Tutsi general and warlord Laurent Nkunda.


M23 commanders like Sultani Makenga and Bosco Ntaganda, who is sought for war crimes by the International Criminal Court, were given high ranks in the army after their re-integration following Nkunda's rebellion. They have now rebelled again.


"While desertion is considered the gravest form of indiscipline in other armies, in the DRC, defected units and commanders have instead regularly been welcomed back into the army - often even rewarded with better opportunities when reintegrated," said Maria Eriksson Baaz, a researcher at the Sweden-based Nordic Africa Institute.


She said this was "very demoralizing" for the troops.


PREDATORS RATHER THAN PROTECTORS


Critics say Kabila has little incentive to improve the national armed forces because a strong military could eventually turn against him.


In April, a report by international and Congolese NGOs said the failure to reform Congo's large and ill-disciplined army had kept much of the civilian population in poverty and insecurity despite billions of dollars of foreign aid for the country.


As a result, more than $14 billion of international aid over 5 years had ended up having "little impact on the average Congolese citizen", the report noted. It faulted international powers for not pushing the government to reform the army.


A little over one percent, or $85 million, of official development aid for the Congo was spent on direct security sector reform between 2006 and 2011, according to the report.


Without reform, Congolese soldiers often act more like predators than protectors and whatever the government probe into allegations of treachery may find, people around Goma remain fearful a cycle of revolt and violence will continue.


Residents in the nearby town of Minova spoke of a three-day rampage of drinking, shooting, stealing and rape by thousands of retreating government troops last month. One local man, Mbogos Simwerayi, recalled: "Everyone suffered with the army here."


The U.N. said on Friday investigations showed FARDC soldiers raped and pillaged in Minova, but it added M23 insurgents also killed civilians and looted when they held Goma.


(Editing by Pascal Fletcher and Janet McBride)



Read More..

Bradley Cooper & Zoe Saldana Celebrate Silver Linings Playbook in West Hollywood















12/10/2012 at 06:00 AM EST







Zoe Saldana and Bradley Cooper


Jeff Vespa/Getty


Bradley Cooper and Robert De Niro were on hand to celebrate their film Silver Linings Playbook at the Weinstein Company's special event at the Chateau Marmont in West Hollywood on Friday.

At the candle-lit dinner party, De Niro enjoyed a Purity Vodka martini, while Cooper posed for photos with Zoe Saldana. De Niro spent part of the night talking with Mel Gibson and Jane Fonda, who were also in attendance.

Diane Keaton was also at the event, but upon arriving, entered the room "looking a bit puzzled," an onlooker tells PEOPLE.

When asked if she was looking for someone, she responded, "No, I'm looking for a drink," the source adds.

– Kristin Boehm


Read More..

Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


Read More..

Stock index futures signal lower Wall Street open

LONDON (Reuters) - Stock index futures pointed to a weaker open on Wall Street on Monday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 falling 0.1 to 0.3 percent.


President Barack Obama met with Republican Speaker of the House of Representatives John Boehner on Sunday at the White House to negotiate ways to avoid the "fiscal cliff," according to White House officials and a congressional aide.


American International Group Inc is to sell nearly all of ILFC , the world's second-largest airplane leasing business, to a Chinese consortium for up to $4.8 billion, giving the fastest growing aviation market easier and cheaper access to planes.


The Conference Board releases its employment trend index for November at 1500 GMT (10 a.m. EST). In the previous report, the index read 108.2.


Virgin Atlantic and Delta Air Lines will agree a partnership on transatlantic flights once the U.S. carrier seals a deal to buy Singapore Airlines' 49 percent stake in the British airline, a source close to the UK carrier said.


Ingersoll-Rand Plc is expected to announce as soon as Monday it will spin off its security division, two people familiar with the matter said, as the industrial conglomerate cedes to pressure from activist investor Nelson Peltz to unlock more shareholder value.


Opel, the ailing European brand belonging to General Motor , said it plans to end vehicle production in 2016 at its acutely endangered Bochum plant in Germany, the company said on Monday.


China's exports growth slowed sharply to a much lower than expected 2.9 percent in November, underscoring the global headwinds dragging on an economy showing otherwise solid signs of a pick up in domestic activity.


European shares dropped on Monday, with the FTSEurofirst 300 index <.fteu3> falling 0.3 percent to retreat from an 18-month high hit last week, on renewed worries over Italy's finances after mounting political uncertainty.


Italian Prime Minister Mario Monti's imminent resignation has set off campaigning for an election expected in February, with financial markets on edge at the prospect of a return to an old-style Italian political crisis.


The Dow and the S&P 500 advanced modestly on Friday, though another sell-off in Apple depressed technology shares and kept the Nasdaq negative, overshadowing a sharply better-than-expected jobs report.


The Dow Jones industrial average <.dji> gained 81.09 points, or 0.62 percent, to 13,155.13 at the close. The Standard & Poor's 500 Index <.spx> rose 4.13 points, or 0.29 percent, to 1,418.07. The Nasdaq Composite Index <.ixic> slipped 11.23 points, or 0.38 percent, to close at 2,978.04.


(Reporting by Atul Prakash/editing by Chris Pizzey, London MPG Desk)



Read More..

Egypt president scraps decree that sparked protests


CAIRO (Reuters) - Egyptian President Mohamed Mursi has cancelled a decree that gave him sweeping powers and sparked violent unrest but did not delay this month's referendum on a new constitution that was a major demand of his opponents.


Islamist supporters of Mursi have insisted the referendum should go ahead on time on December 15, saying it is needed to complete a democratic transition still incomplete after autocrat Hosni Mubarak's overthrow 22 months ago.


Ahmed Said, a leading member of the main opposition National Salvation Front said the decision to press ahead with the referendum was "shocking" and would deepen a political crisis.


"It is making things a lot worse," Said, head of the liberal Free Egyptians Party, told Reuters. "I cannot imagine that after all this they want to pass a constitution that does not represent all Egyptians." He said the Front would meet later on Sunday to give a formal response.


The announcement that Mursi had scrapped his November 22 decree followed talks on Saturday that ran into the night at his presidential palace. Billed as a "national dialogue", the meeting was boycotted by his main rivals and had little credibility among protesters in the most populous Arab nation.


The April 6 movement, which helped galvanize street protests against Mubarak, said in a statement about the outcome of Saturday's talks: "What happened is manipulation and a continuation of deception in the name of law and legitimacy."


The constitution was fast-tracked through an assembly led by Mursi's Muslim Brotherhood and other Islamists. Liberals and others walked out, saying their voices were not being heard.


"A constitution without consensus cannot go to a referendum," said Hermes Fawzi, 28, a protester camped with dozens of others outside the presidential palace. "It's not logical that just one part of society makes the constitution."


Nearby were tanks and military vehicles of the Republican Guards positioned there to protect the palace after clashes in the past week between Islamists and their rivals killed seven people and injured about 350.


The military, which led Egypt through a turbulent interim period after Mubarak fell, stepped into the crisis on Saturday to tell feuding factions that dialogue was essential to avoid "catastrophe." But a military source said this was not a prelude to the army retaking control of Egypt or the streets.


DEEP RIFTS


After Saturday's talks, Mursi issued a new decree in which the first article "cancels the constitutional declaration" announced on November 22, the spokesman for the dialogue, Mohamed Selim al-Awa, told a news conference held around midnight.


But he said the constitutional referendum would go ahead anyway next Saturday, adding that although those at the meeting discussed a postponement, there were legal obstacles to a delay.


The political turmoil has exposed deep rifts in the nation of 83 million between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptian just crave stability and economic recovery.


Islamists and more liberal-minded opponents have each drawn tens of thousands of supporters to the streets in rival rallies since the November 22 decree. Mursi's opponents have chanted for his downfall while Islamists have said there is a conspiracy to bring down the nation's first freely elected president.


The National Salvation Front, whose members include Nobel Peace Prize laureate Mohamed ElBaradei and former foreign minister Amr Moussa, stayed away from Saturday's talks.


Ahead of stating its formal position, Front spokesman Hussein Abdel Ghani said: "My first personal impression is that it is a limited and insufficient step. We repeatedly said that among our top demands is for the referendum to be delayed."


Despite such opposition, Mursi is gambling he can push through the constitution via referendum with the backing of loyal Islamists and many Egyptians who are desperate to move on. Only after a constitution is in place can an election be held for a new parliament, expected about two months later.


The Islamist-led lower house of parliament elected this year was dissolved after a few months by a court order.


DISTRUST


The new decree removed some parts of the old decree that angered the opposition, including an article that had given Mursi broad powers to confront threats to the revolution or the nation, wording opponents said gave him arbitrary authority.


Another article in the old decree had put beyond legal challenge any decision taken by the president until a new parliament was elected, reflecting Mursi's distrust of a judiciary largely unreformed from Mubarak's era.


That article was not repeated, but the new decree said "constitutional declarations including this declaration" were beyond judicial review.


The new decree outlined steps for setting up an assembly to draft a new constitution should the current draft be rejected.


Further, the opposition was invited to offer suggested changes to the new constitution, echoing an earlier initiative by Mursi's team for amendments to be discussed and agreed on by political factions and put to the new parliament to approve.


Amid the violence and political bickering, the army has cast itself primarily as the neutral guarantor of the nation.


"The armed forces affirm that dialogue is the best and only way to reach consensus," the military statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."


The army might be pushing the opposition to join dialogue and for Mursi to do more to draw them in, said Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies.


He discounted the chance of direct military intervention. "They realize that interfering again in a situation of civil combat will squeeze them between two rocks," he added.


But the military seemed poised to take a more active role in security arrangements for the approaching referendum.


A cabinet source said the cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who are normally in charge of election security.


According to the state-run daily newspaper al-Ahram, an expanded military security role might extend to the next parliamentary election and, at the president's discretion, even beyond that.


(Additional reporting by Tamim Elyan; Writing by Edmund Blair; Editing by Mark Heinrich)



Read More..

Michelle Branch's Daughter's Dream Job Is For the Birds - Literally




Celebrity Baby Blog





12/03/2012 at 02:00 PM ET



Prince William and Kate Expecting First Child
Sthanlee B. Mirador/Shooting Star


It seems as if Michelle Branch‘s daughter won’t be following in her musical footsteps any time soon.


While the Grammy Award winning singer/songwriter and her husband, bass player Teddy Landau, are no strangers to the stage, 7-year-old Owen Isabelle has found her niche in nature.


“I think because my husband and I are both musicians, she kind of feels like she has to do something a little bit more serious than her mom and dad,” the Cook Taste Eat host, 29, tells PEOPLE.


“Since she was 3 or 4 years old, she was always into science and dinosaurs and watching nature shows.”


In particular, all-things aviary has struck a chord with the little girl, who has already happily declared her future dream job.

“She’s obsessed with birds. She’s been begging to have a pet bird, which I will not allow,” saya Branch. “[Owen] claims she’s going to be an ornithologist when she grows up. Literally, it’s birds 24/7 — every book she wants is birds, stickers, drawings, clothes, everything.”


And as sure as she is of her pending career plans, Owen is just as confident in her political views. Happy to reveal who would have earned her support, the little girl has no qualms about divulging the deciding factor during the recent Presidential election.


“Around election time she said, ‘You know Mom, if I could vote, I would vote for Barack Obama.’ And I said, ‘Oh, really, that’s so interesting. Why?’” Branch recalls.


“And she said, ‘Well, remember that one time we got to go to the White House and meet him? I don’t vote for strangers.’”


');var brightcovevideoid = 1995568442001
');var targetVideoWidth = 300;brightcove.createExperiences();/* iPhone, iPad, iPod */if ((navigator.userAgent.match('iPhone')) || (navigator.userAgent.match('iPad')) || (navigator.userAgent.match('iPod')) || (location.search.indexOf('ipad=true') > -1)) { document.write('
Read More..

Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


Read More..

Wall Street Week Ahead: "Cliff" worries may drive tax selling


NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.


The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.


Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.


Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.


"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."


Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.


Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.


"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple's stock.


"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.


"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.


"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)



Read More..

Egyptian opposition to shun Mursi's national dialogue


CAIRO (Reuters) - President Mohamed Mursi was expected to press ahead on Saturday with talks on ways to end Egypt's worst crisis since he took office even though the country's main opposition leaders have vowed to stay away.


Cairo and other cities have been rocked by violent protests since November 22, when Mursi promulgated a decree awarding himself sweeping powers that put him above the law.


The upheaval in the most populous Arab nation, following the fall of Hosni Mubarak last year, worries the West, in particular the United States, which has given it billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


Mursi's deputy raised the possibility that a referendum set for December 15 on a new constitution opposed by liberals might be delayed. But the concession only goes part-way towards meeting the demands of the opposition, who also want Mursi to scrap the decree awarding himself wide powers.


On Friday, large crowds of protesters surged around the presidential palace, breaking through barbed wire barricades and climbing on tanks guarding the seat of Egypt's first freely elected president, who took office in June.


As the night wore on, tens of thousands of opposition supporters were still at the palace, waving flags and urging Mursi to "Leave, leave".


"AS LONG AS IT TAKES"


"We will stay here for as long as it takes and will continue to organize protests elsewhere until President Mursi cancels his constitutional decree and postpones the referendum," said Ahmed Essam, 28, a computer engineer and a member of the liberal Dostour party.


Vice President Mahmoud Mekky issued a statement saying the president was prepared to postpone the referendum if that could be done without legal challenge.


Mursi's planned dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. "Everything will be on the table," a presidential source said.


Mursi could be joined by some senior judiciary figures and politicians such as Ayman Nour, one of the candidates in Mubarak's only multi-candidate presidential race, in 2005, in which he was unsurprisingly trounced.


The opposition has demanded that Mursi rescind the decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.


EXPAT VOTE DELAYED


The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting within Egypt.


Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was intended to seem like a concession but would not change the opposition's stance.


The opposition organized marches converging on the palace which Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.


Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo's al-Azhar mosque for six Mursi partisans who were among the dead.


"With our blood and souls, we sacrifice to Islam," they chanted.


A group led by leftist opposition leader Hamdeen Sabahy has called for an open-ended protest at the palace.


Some pro-Mursi demonstrators gathered in a mosque not far from the palace, but said they would not march towards the palace to avoid a repeat of the violence that took place on Wednesday night.


In a speech late on Thursday, Mursi had refused to retract his decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.


The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as "arm-twisting and imposition of a fait accompli".


ElBaradei said that if Mursi were to scrap the decree with which he awarded himself extra powers and postpone the referendum "he will unite the national forces".


Murad Ali, spokesman for the Muslim Brotherhood's Freedom and Justice Party, said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.


(This story corrects Mursi's title to president in paragraph 1)


(Additional reporting by Omar Fahmy; Writing by Giles Elgood; Editing by Michael Roddy and Paul Tait)



Read More..

Internet governance talks in jeopardy as Arab states, Russia ally












SAN FRANCISCO (Reuters) – A landmark attempt to set global rules for overseeing the Internet threatened to fall apart on Friday as a rift pitting the United States and some Western countries against the rest of the world widened, participants in the talks said.


A 12-day conference of the International Telecommunications Union, taking place in Dubai, is supposed to result in the adoption of a new international treaty governing trans-border communications.












But in a critical session at the midpoint of the conference on Friday, delegates refused to adopt a U.S.-Canadian proposal to limit the treaty’s scope to traditional communications carriers and exclude Internet companies such as Google, the ITU said on its website.


Further complicating the negotiations was what a U.S. official at the talks called the “surprise” announcement of an accord among some Arab states, Russia and other countries to pursue treaty amendments that are expected to include Internet provisions unacceptable to the United States


A still-secret draft of the coalition’s proposals is to be introduced soon by the United Arab Emirates, the official said.


“It doesn’t look good,” said a former U.S. intelligence official tracking the talks for private technology clients.


The emergence of the new coalition, whose members are generally seeking greater Internet censorship and surveillance, is likely to harden battle lines separating those countries from the United States and some allies in Western Europe.


The United States and others objected to the introduction of complex new material midway through the conference.


“All of the indicators we have so far is it’s something that could be a clear effort to extend the treaty to cover Net governance,” said policy counsel Emma Llanso of the nonprofit Center for Democracy & Technology, which draws funding from Google and other U.S. Internet companies.


“What we’re seeing is governments putting forward their visions of the future of the Internet, and if we see a large group of governments form that sees an Internet a lot more locked down and controlled, that’s a big concern.”


CONCERNS ABOUT GOVERNMENT CONTROLS


The U.S. ambassador to the conference said in an earlier interview that his country would not sign any agreement that dramatically increased government controls over the Internet.


That would potentially isolate America and its allies from much of the world, and technology leaders fear that the rest of the globe would agree on actions such as identifying political dissidents who use the Internet and perhaps trying to alter the Net’s architecture to permit more control.


The 147-year-old ITU, which is now under the auspices of the United Nations, historically has set technology standards and established payment customs for international phone calls. But under Secretary-General Hamadoun Touré, it has inched toward cyber-security and electronic content issues, arguing that Internet traffic goes over phone lines and is therefore within its purview.


The ITU is considering other issues in its most extensive rewrite of the treaty in 15 years, including proposals that content providers shoulder the costs of transmission. But none is as controversial as the projected Internet controls.


The Internet’s infrastructure, while initially funded in part by the U.S. government, is now largely in private hands. It has been subject to little government control, although many nations have attempted to regulate Internet communications in various ways.


ICANN, a self-governing nonprofit under contract to the U.S. Department of Commerce, is ultimately responsible for making sure that people trying to reach a given website actually get there, but most technology policies are developed by industry groups.


At the ITU meeting, the American delegation had counted on support from at least Japan, Australia and other affluent democracies.


But its effort to stave off wholesale changes has been hindered by complications in Western Europe, where some countries were supporting a change to the economic model that would have Google, Facebook and others pay for at least some of the costs of Internet transmission.


Smaller groups at the ITU conference will work through the weekend, with the full body meeting again on Monday.


(Editing by Jonathan Weber and Peter Cooney)


Tech News Headlines – Yahoo! News


Read More..