Egypt assembly seeks to wrap up constitution

CAIRO (Reuters) - The assembly writing Egypt's constitution said it could wrap up a final draft later on Wednesday, a move the Muslim Brotherhood sees as a way out of a crisis over a decree by President Mohamed Mursi that protesters say gives him dictatorial powers.

But as Mursi's opponents staged a sixth day of protests in Tahrir Square, critics said the Islamist-dominated assembly's bid to finish the constitution quickly could make matters worse.

Two people have been killed and hundreds injured in countrywide protest set off by Mursi's decree.

The Brotherhood hopes to end the crisis by replacing Mursi's controversial decree with an entirely new constitution that would need to be approved in a popular referendum, a Brotherhood official told Reuters.

It is a gamble based on the Islamists' belief that they can mobilize enough voters to win the referendum: they have won all elections held since Hosni Mubarak was toppled from power.

But the move seemed likely to deepen divisions that are being exposed in the street.

The Muslim Brotherhood and its Islamist allies called for protests on Saturday in Tahrir Square, setting the stage for more confrontation with their opponents, who staged a mass rally there on Tuesday.

The constitution is one of the main reasons Mursi is at loggerheads with non-Islamist opponents. They are boycotting the 100-member constitutional assembly, saying the Islamists have tried to impose their vision for Egypt's future.

The assembly's legal legitimacy has been called into question by a series of court cases demanding its dissolution. Its popular legitimacy has been hit by the withdrawal of members including church representatives and liberals.

"We will start now and finish today, God willing," Hossam el-Gheriyani, the assembly speaker, said at the start of its latest session in Cairo, saying Thursday would be "a great day".

"If you are upset by the decree, nothing will stop it except a new constitution issued immediately," he said. Three other members of the assembly told Reuters there were plans to put the document to a vote on Thursday.

ENTRENCHING AUTHORITARIANISM

Just down the road from the meeting convened at the Shura Council, protesters were again clashing with riot police in Tahrir Square. Members of the assembly watched on television as they waited to go into session.

"The constitution is in its last phases and will be put to a referendum soon and God willing it will solve a lot of the problems in the street," said Talaat Marzouk, an assembly member from the Salafi Nour Party, as he watched the images.

But Wael Ghonim, a prominent activist whose online blogging helped ignite the anti-Mubarak uprising, said a constitution passed in such circumstances would "entrench authoritarianism".

The constitution is supposed to be the cornerstone of a new, democratic Egypt following Mubarak's three decades of autocratic rule. The assembly has been at work for six months. Mursi had extended its December 12 deadline by two months - extra time that Gheriyani said was not needed.

The constitution will determine the powers of the president and parliament and define the roles of the judiciary and a military establishment that had been at the heart of power for decades until Mubarak was toppled. It will also set out the role of Islamic law, or sharia.

The effort to conclude the text quickly marked an escalation, said Nathan Brown, a professor of political science at George Washington University in the United States.

"It may be regarded with hostility by a lot of state actors too, including the judiciary," he said.

Leading opposition and former Arab League chief figure Amr Moussa slammed the move. He walked out of the assembly earlier this month. "This is nonsensical and one of the steps that shouldn't be taken, given the background of anger and resentment to the current constitutional assembly," he told Reuters.

Once drafted, the constitution will go to Mursi for approval, and he must then put it to a referendum within 15 days, which could mean the vote would be held by mid-December.

COURTS DECLARE STRIKE

Deepening the crisis further on Wednesday, Egypt's Cassation and Appeals courts said they would suspend their work until the constitutional court rules on the decree.

The judiciary, largely unreformed since the popular uprising that unseated Mubarak, was seen as a major target in the decree issued last Thursday, which extended his powers and put his decisions temporarily beyond legal challenge.

"The president wants to create a new dictatorship," said 38-year-old Mohamed Sayyed Ahmed, an unemployed man, in Tahrir.

Showing the depth of distrust of Mursi in parts of the judiciary, a spokesman for the Supreme Constitutional Court, which earlier this year declared void the Islamist-led parliament, said it felt under attack by the president.

In a speech on Friday, Mursi praised the judiciary as a whole but referred to corrupt elements he aimed to weed out.

"The really sad thing that has pained the members of this court is when the president of the republic joined, in a painful surprise, the campaign of continuous attack on the Constitutional Court," said the spokesman Maher Samy.

Senior judges have been negotiating with Mursi about how to restrict his new powers.

Mursi's administration insists that his actions were aimed at breaking a political logjam to push Egypt more swiftly towards democracy, an assertion his opponents dismiss.

The West worries about turbulence in a nation that has a peace treaty with Israel and is now ruled by Islamists they long kept at arms length.

Trying to ease tensions with judges, Mursi said elements of his decree giving his decisions immunity applied only to matters of "sovereign" importance, a compromise suggested by the judges.

A constitution must be in place before a new parliament can be elected, and until that time Mursi holds both executive and legislative powers. An election could take place in early 2013.

(Additional reporting by Tom Perry and Marwa Awad; Writing by Edmund Blair and Tom Perry; Editing by Will Waterman and Giles Elgood)

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Kai Kai, Jia Jia thrill visitors on Giant Panda Forest opening day

SINGAPORE: The two pandas from China, Kai Kai and Jia Jia, thrilled hordes of visitors on the opening day of the Giant Panda Forest on Thursday.

They were active, moving playfully around their enclosure, as visitors snapped photographs and filmed every action of the pandas.

Some visitors were at the Singapore Zoo, where the Panda Forest is located, before 8am - one hour before the panda's enclosure opened.

Each adult pays an extra S$5 while a child pays an additional S$3 to visit the pandas.

Each ticket holder has 15 minutes in the enclosure.

Tickets for the first few viewing sessions were quickly snapped up.

For many families, the outing to the Giant Panda Forest was a school holiday treat.

One mother, Madam Joycelyn Chew, said the visit was a reward for her two young daughters who had done well in their school examinations.

Another visitor, Mr Anond Suwanarat, was there at about 9am, hoping to be among the first to see the pandas.

But the tickets had already been snapped up.

He and his family managed to meet the pandas at 10.40am.

Business analyst Ms Manjula Abeyasinghe, who is on a holiday in Singapore with her family, cancelled plans to go to the Universal Studios Singapore when she heard that the panda enclosure would open to the public on Thursday.

The Giant Panda Forest is the first of the River Safari attractions to open to the public. The rest of the park is expected to be ready by early next year.

- CNA/ir

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

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Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Powerball Numbers Drawn for Nearly $580M Jackpot

5-23-16-22-29-Powerball 6: Those are the winning numbers for an estimated $579 million Powerball jackpot -- the biggest in history.

After a feverish day that saw hopeful players buying tickets at the rate of 131,000 every minute, lottery officials in Orlando, Fla., drew the winning sequence shortly after 11 p.m.

The results likely will be announced sometime after 2 a.m. Thursday morning.

Identifying the winner, however, could take days -- if there is a winner.

A prior drawing last Saturday night produced no winner. That fact, plus the doubling in price of a Powerball ticket, accounted for the unprecedented richness of the pot.

"Back in January, we moved Powerball from being a $1 game to $2," said Mary Neubauer, a spokeswoman at the game's headquarters in Iowa. "We thought at the time that this would mean bigger and faster-growing jackpots."

That proved true. The total, she said, began taking "huge jumps -- another $100 million since Saturday." It then jumped another $50 million.

The biggest Powerball pot on record until now -- $365 million -- was won in 2006 by eight Lincoln, Neb., co-workers.

In Photos: Biggest Lotto Jackpot Winners

AP Photo/Patrick Semansky

As the latest pot swelled, lottery officials said they began getting phone calls from all around the world.

"When it gets this big," said Neubauer, "we get inquiries from Canada and Europe from people wanting to know if they can buy a ticket. They ask if they can FedEx us the money."

The answer she has to give them, she said, is: "Sorry, no. You have to buy a ticket in a member state from a licensed retail location."

About 80 percent of players don't choose their own Powerball number, opting instead for a computer-generated one.

Asked if there's anything a player can do to improve his or her odds of winning, Neubauer said there isn't -- apart from buying a ticket, of course.

Lottery officials put the odds of winning the $579 Powerball pot at one in 175 million, meaning you'd have been 25 times more likely to win an Academy Award.

Skip Garibaldi, a professor of mathematics at Emory University in Atlanta, provided additional perspective: You are three times more likely to die from a falling coconut, he said; seven times more likely to die from fireworks, "and way more likely to die from flesh-eating bacteria" (115 fatalities a year) than you are to win the Powerball lottery.

Segueing, then, from death to life, Garibaldi noted that even the best physicians, equipped with the most up-to-date equipment, can't predict the timing of a child's birth with much accuracy.

"But let's suppose," he said, "that your doctor managed to predict the day, the hour, the minute and the second your baby would be born."

The doctor's uncanny prediction would be "at least 100 times" more likely than your winning.

Even though he knows the odds all too well, Garibaldi said he usually plays the lottery.

When it gets this big, I'll buy a couple of tickets," he said. "It's kind of exciting. You get this feeling of anticipation. You get to think about the fantasy."

So, did he buy two tickets this time?

"I couldn't," he told ABC News. "I'm in California" -- one of eight states that doesn't offer Powerball.

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Egyptians challenge Mursi in nationwide protests

CAIRO (Reuters) - Tens of thousands of Egyptians rallied on Tuesday against President Mohamed Mursi in one of the biggest outpourings of protest since Hosni Mubarak's overthrow, accusing the Islamist leader of seeking to impose a new era of autocracy.

Police fired tear gas at stone-throwing youths in streets near the main protest in Cairo's Tahrir Square, heart of the uprising that toppled Mubarak last year. Clashes between Mursi's opponents and supporters erupted in a city north of Cairo.

But violence could not overshadow the show of strength by the normally divided opponents of Islamists in power, posing Mursi with the biggest challenge in his five months in office.

"The people want to bring down the regime," protesters in Tahrir chanted, echoing slogans used in the 2011 revolt.

Protesters also turned out in Alexandria, Suez, Minya and other Nile Delta cities.

Tuesday's unrest by leftists, liberals and other groups deepened the worst crisis since the Muslim Brotherhood politician was elected in June, and exposed the deep divide between the newly empowered Islamists and their opponents.

A 52-year-old protester died after inhaling tear gas in Cairo, the second death since Mursi last week issued a decree that expanded his powers and barred court challenges to his decisions.

Mursi's administration has defended the decree as an effort to speed up reforms and complete a democratic transformation in the Arab world's most populous country.

"Calls for civil disobedience and strikes will be dealt with strictly by law and there is no retreat from the decree," Refa'a Al-Tahtawy, Mursi's presidential chief of staff, told the Al-Hayat private satellite channel.

But opponents say Mursi is behaving like a modern-day pharaoh, a jibe once leveled at Mubarak. The United States, a benefactor to Egypt's military, has expressed concern about more turbulence in a country that has a peace treaty with Israel.

"We don't want a dictatorship again. The Mubarak regime was a dictatorship. We had a revolution to have justice and freedom," 32-year-old Ahmed Husseini said in Cairo.

The fractious ranks of Egypt's non-Islamist opposition have been united on the street by crisis, although they have yet to build an electoral machine to challenge the well-organized Islamists, who have beaten their more secular-minded rivals at the ballot box in two elections held since Mubarak was ousted.

MISCALCULATION

"There are signs that over the last couple of days that Mursi and the Brotherhood realized their mistake," said Elijah Zarwan, a fellow with The European Council on Foreign Relations. He said the protests were "a very clear illustration of how much of a political miscalculation this was".

Mursi's move provoked a rebellion by judges and has battered confidence in an economy struggling after two years of turmoil. The president still must implement unpopular measures to rein in Egypt's crushing budget deficit - action needed to finalize a deal for a $4.8 billion International Monetary Fund loan.

Some protesters have been camped out since Friday in Tahrir and violence has flared around the country, including in a town north of Cairo where a Muslim Brotherhood youth was killed in clashes on Sunday. Hundreds have been injured.

Supporters and opponents of Mursi threw stones at each other and some hurled petrol bombs in the Delta city of el-Mahalla el-Kubra. Medical sources said almost 200 people were injured.

"The main demand is to withdraw the constitutional declaration (decree). This is the point," said Amr Moussa, a former Arab League chief and presidential candidate who has joined the new opposition coalition, the National Salvation Front. The group includes several top liberal politicians.

Some scholars from the prestigious al-Azhar mosque and university joined Tuesday's protest, showing that Mursi and his Brotherhood have alienated some more moderate Muslims. Members of Egypt's large Christian minority also joined in.

Mursi formally quit the Brotherhood on taking office, saying he would be a president for all Egyptians, but he is still a member of its Freedom and Justice Party.

The decree issued on Thursday expanded his powers and protected his decisions from judicial review until the election of a new parliament, expected in the first half of 2013.

In Washington, White House spokesman Jay Carney urged demonstrators to behave peacefully.

"The current constitutional impasse is an internal Egyptian situation that can only be resolved by the Egyptian people, through peaceful democratic dialogue," he told reporters.

New York-based Human Rights Watch said the decree gives Mursi more power than the interim military junta from which he took over.

U.N. Secretary-General Ban Ki-moon told an Austrian paper he would encourage Mursi to resolve the issue by dialogue.

DECREE'S SCOPE DEBATABLE

Trying to ease tensions with judges, Mursi assured Egypt's highest judicial authority that elements of his decree giving his decisions immunity applied only to matters of "sovereign" importance. That should limit it to issues such as declaring war, but experts said there was room for interpretation.

In another step to avoid more confrontation, the Muslim Brotherhood cancelled plans for a rival mass rally in Cairo on Tuesday to support the decree. Violence has flared in Cairo in the past when both sides have taken to the streets.

But there has been no retreat on other elements of the decree, including a stipulation that the Islamist-dominated body writing a new constitution be protected from legal challenge.

"The decree must be cancelled and the constituent assembly should be reformed. All intellectuals have left it and now it is controlled by Islamists," said 50-year-old Noha Abol Fotouh.

With its popular legitimacy undermined by the withdrawal of most of its non-Islamist members, the assembly faces a series of court cases from plaintiffs who say it was formed illegally.

Mursi issued the decree on November 22, a day after he won U.S. and international praise for brokering an end to eight days of violence between Israel and Hamas around the Gaza Strip.

Mursi's decree was seen as targeting in part a legal establishment still largely unreformed from Mubarak's era, when the Brotherhood was outlawed.

Though both Islamists and their opponents broadly agree that the judiciary needs reform, Mursi's rivals oppose his methods.

Rulings from an array of courts this year have dealt a series of blows to the Brotherhood, leading to the dissolution of the first constitutional assembly and the lower house of parliament elected a year ago. The Brotherhood dominated both.

The judiciary blocked an attempt by Mursi to reconvene the Brotherhood-led parliament after his election victory. It also stood in the way of his attempt to sack the prosecutor general, another Mubarak holdover, in October.

In his decree, Mursi gave himself the power to sack that prosecutor and appoint a new one. In open defiance of Mursi, some judges are refusing to acknowledge that step.

(Additional reporting by Tom Perry, Seham Eloraby, Marwa Awad and Yasmine Saleh in Cairo and Michael Shields in Vienna; Writing by Edmund Blair and Tom Perry; Editing by Giles Elgood/Mark Heinrich)

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Hilton chef charged with corruption

SINGAPORE: A senior chef of Hilton Singapore Hotel was charged with two counts of corruption on Wednesday.

Go Choon Heng, 41, allegedly accepted a total of about S$4,500 in bribes, in exchange for furthering the business interests of a seafood supplier, Tay Ee Tiong.

He's alleged to have committed the offences on 13 March 2009 and 18 June 2009.

In exchange, Go allegedly ensured that Hilton Singapore Hotel bought its seafood from Wealthy Seafood Product and Enterprise, owned by Tay.

If convicted, Go faces the maximum fine of S$100,000 and a jail term of five years.

- CNA/ck

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Zee News denies allegations, terms arrests an attack on press freedom

NEW DELHI: Zee News on Wednesday vehemently denied all allegations of extortion levelled against it and described the arrests of two of its senior journalists as a "crude and direct attack on the freedom of the press".

In a statement, Zee News accused Delhi Police of acting at the behest of Congress MP Naveen Jindal. The channel accused Naveen Jindal of trying to divert attention from 'coalgate'.

Delhi Police's crime branch arrested two editors of the Zee group on Tuesday, acting on a complaint by Congress MP Naveen Jindal who had accused the two of trying to extort Rs 100 crore worth of advertisements from his company in return for dropping stories linking the Jindal group with coalgate.

The arrested journalists are Sudhir Chaudhary and Sameer Ahluwalia, editorial heads of Zee news and Zee business channels, respectively, a senior police officer said.

"Prima facie evidence of criminal conspiracy and extortion has been found against the two leading to their arrest," said S B S Tyagi, DCP, crime branch on Tuesday.

The editors had earlier denied the charges, calling it an attempt to target investigative journalism.

Police said the arrests came after forensic experts submitted a report stating the CD submitted by the MP which contained audio and video recording of conversations between the Zee editors and Jindal's officials, was "not doctored". Jindal had claimed to have done a "reverse sting" on the journalists to expose them.

The inter-state cell of crime branch said it had found other conclusive evidence against the Zee journalists.

"The two editors were called for questioning on Tuesday during which they could not give satisfactory answers to our questions. They were informed around 8.30pm about their arrest after four hours of questioning. They will be produced in a Saket court at 2pm on Wednesday," a senior cop said.

The channel accused the Jindal Steel and Power Limited, owned by Congress MP Naveen Jindal, of "using state machinery, controlled by the Congress party both at the centre and Delhi, to muzzle voices of dissent and interfere with the legitimate rights of the Media to divert attention and cloud its illegalities and misdeeds which these editors in the channel sought to highlight in public interest, highlighting the corruption in the coal gate scam after being indicted by CAG, and being investigated by the CBI."

In a statement, the company said: "After over 65 years of independence, now the present Congress-led government is pushing media not to say the truth and gag its mouth. It is practically Emergency revisited in India today on Nov 27, 2012 (this will be known as another black day in Indian history).

"While the matter is sub-judice before the Hon'ble high court of Bombay, to circumvent the judicial process and the orders of the Hon'ble Mumbai high court, the Delhi police at the behest of its Congress MP orchestrated arrests of two senior editors of Zee News Channel, Sameer Ahluwalia and Sudhir Chaudhary, on the basis of a fraudulent and contrived complaint filed on behalf of his company Jindal Steel and Power Limited.

"The arrests have been made to sensationalize the issue and lend a cover to the coalgate scam and in particular to favour of Shri Naveen Jindal, Congress MP and his company M/S Jindal Steel and Power Limited."

"This is a crude and direct attack on the freedom of the press."

"The FIR registered against the two Editors and others, is nothing but a clever attempt to divert attention from its own role in the scam. The channel vehemently denies all allegations levelled against it.

The channel strongly condemns the arbitrary and illegal action of Delhi Police in arresting its two editors and for initiating a malicious, illegal and motivated prosecution. We wish to reiterate that no offence has been committed by members of staff," the statement said.

(With inputs from IANS)

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CDC: HIV spread high in young gay males

NEW YORK (AP) — Health officials say 1 in 5 new HIV infections occur in a tiny segment of the population — young men who are gay or bisexual.

The government on Tuesday released new numbers that spotlight how the spread of the AIDS virus is heavily concentrated in young males who have sex with other males. Only about a quarter of new infections in the 13-to-24 age group are from injecting drugs or heterosexual sex.

The Centers for Disease Control and Prevention said blacks represented more than half of new infections in youths. The estimates are based on 2010 figures.

Overall, new U.S. HIV infections have held steady at around 50,000 annually. About 12,000 are in teens and young adults, and most youth with HIV haven't been tested.

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Online:

CDC report: http://www.cdc.gov/vitalsigns

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Petraeus Scandal: Socialite Jill Kelley Fighting Back

Tampa socialite Jill Kelley is fighting back. Today, sources close to the woman who was caught in the media crossfire during the David Petraeus sex scandal have released new letters aimed at reclaiming her reputation.

In a letter released to reporters by Jill Kelley's spokesperson, Kelley's attorney goes after a New York businessman who claimed Kelley was using her connections to Petraeus to broker a deal with the South Korean government.

"It is impossible to overlook your attempt to get your '15 minutes of fame,'" attorney Abbe Lowell wrote to Adam Victor, the president and CEO of TransGas Development Systems. "…You have the right to do that to yourself, but you do not have the right to defame our client.

"This letter is notice to you that statements you have made are false and defamatory and are intended to portray Ms. Kelley in a false light," the letter continued.

Click Here to Read Past Blotter Coverage: Jill Kelley Emails Show Her Eager to Make Multi-Billion Dollar Deal

Victor has claimed that Kelley asked for $80 million in commissions to arrange a deal between Victor and the South Korean government. Kelley was an honorary consul for the Republic of South Korean.

"While it is certainly true that Ms. Kelley communicated with you about a potential business deal, it has nothing to do with General Petraeus or other military," Lowell wrote Victor.

Kelley was stripped of her ceremonial position as honorary consul for South Korea today, according to South Korean Deputy Foreign Minister Kim Kyou-hyun.

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Inside the Petraeus Scandal: Did Broadwell and Kelley Profit? Watch Video

"It is not suitable to the status of honorary consul that [she] sought to be involved in commercial projects and peddle influence," Kyou-hyun told South Korea's semi-official Yonhap News Agency.

The dealings between Jill Kelley and Adam Victor were detailed in a series of emails between the two made public earlier this month. The emails appeared to confirm the New York businessman's claim that Kelley wanted a huge fee for brokering a transaction with the South Korean government.

But in his letter to Victor, Lowell denies that Kelley wanted anything close to $80 million, and says the full chain of emails reveal that "it was you (Victor) who were trying to capitalize on her contacts, and not the other way around."

Kelley and Victor were introduced at the Republican National Convention in Tampa in August by Kelley's friend, Tampa real estate developer Don Phillips. In an interview with ABC News, Phillips said he suggested that Kelley and Victor should meet because Kelley could help Victor land a deal for a coal gasification plant in South Korea.

Phillips claimed that Kelley said that Victor tried to "proposition" her "almost immediately," and said he had to cajole her into flying to New York for a second meeting with Victor.

After she met with Victor in New York, Phillips said, Kelley reported that she was no longer interested in pursuing the deal. According to Phillips, she said, "As a result of my personal investigations and business intelligence this is just not going anywhere, Don, and you just don't want to associate with this guy."

Victor, who denies propositioning Kelley, claimed she continued pushing for the deal after their meeting in New York. But sources close to Kelley say that telephone voice messages Victor left for Kelley reveal that he was the one who continued to seek Kelley's involvement, even after the Petraeus affair came to light.

Victor also claims that Kelley told him Petraeus arranged for her to be named honorary consul, and that she could use her connections with high-level Korean officials to help land the coal plant deal.

None of the emails that Victor showed to ABC News mention Petraeus. Kelley's friend Don Phillips told ABC News that Kelley has not "in any way tried to profit" from her relationship with Petraeus.

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Euro zone, IMF reach deal to cut long-term Greek debt

BRUSSELS (Reuters) - Euro zone finance ministers and the International Monetary Fund clinched agreement on reducing Greece's debt on Monday in a breakthrough to release urgently needed loans to keep the near-bankrupt economy afloat.

After 12 hours of talks at their third meeting in as many weeks, Greece's international lenders agreed on a package of measures to reduce Greek debt by 40 billion euros, cutting it to 124 percent of gross domestic product by 2020.

In a significant new pledge, ministers committed themselves to take further steps to lower Greece's debt to "significantly below 110 percent" in 2022 -- the most explicit recognition so far that some write-off of loans may be necessary from 2016, the point when Greece is forecast to reach a primary budget surplus.

"When Greece has achieved, or is about to achieve, a primary surplus and fulfilled all of its conditions, we will, if need be, consider further measures for the reduction of the total debt," German Finance Minister Wolfgang Schaeuble said.

Eurogroup Chairman Jean-Claude Juncker said ministers would formally approve the release of a major aid installment needed to recapitalize Greece's teetering banks and enable the government to pay wages, pensions and suppliers on December 13.

Greece will receive up to 43.7 billion euros in stages as it fulfills the conditions. The December installment will comprise 23.8 billion for banks and 10.6 billion in budget assistance.

The IMF's share, less than a third of the total, will only be paid out once a buy-back of Greek debt has occurred in the coming weeks, but IMF Managing Director Christine Lagarde said the Fund had no intention of pulling out of the program.

To reduce Greece's debt pile, ministers agreed to cut the interest rate on official loans, extend their maturity by 15 years to 30 years, and grant Athens a 10-year interest repayment deferral.

They promised to hand back 11 billion euros in profits accruing to their national central banks from European Central Bank purchases of discounted Greek government bonds in the secondary market.

They also agreed to finance Greece to buy back its own bonds from private investors at what officials said was a target cost of around 35 cents in the euro.

European Central Bank President Mario Draghi said on leaving the talks: "I very much welcome the decisions taken by the ministers of finance. They will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece."

BETTER FUTURE

The euro strengthened against the dollar after news of the deal was first reported by Reuters.

Juncker said the accord opened new hope for Greeks.

"This is not just about money. This is the promise of a better future for the Greek people and for the euro area as a whole, a break from the era of missed targets and loose implementation towards a new paradigm of steadfast reform momentum, declining debt ratios and a return to growth," he told a 2 a.m. news conference.

Greek Finance Minister Yannis Stournaras said earlier that Athens had fulfilled its part of the deal by enacting tough austerity measures and economic reforms, and it was now up to the lenders to do their part.

Greece, where the euro zone's debt crisis erupted in late 2009, is the currency area's most heavily indebted country, despite a big "haircut" this year on privately-held bonds. Its economy has shrunk by nearly 25 percent in five years.

Negotiations had been stalled over how Greece's debt, forecast to peak at 190-200 percent of GDP in the coming two years, could be cut to a more sustainable 120 percent by 2020.

The agreed figure fell slightly short of that goal, and the IMF was still insisting that euro zone ministers should make a firm commitment to further steps to reduce the debt stock if Athens implements its adjustment program faithfully.

The key question remains whether Greek debt can become sustainable without euro zone governments having to write off some of the loans they have made to Athens.

Germany and its northern European allies have hitherto rejected any idea of forgiving official loans to Athens, but EU officials believe that line may soften after next year's German general election.

DEBT RELIEF "NOT ON TABLE"

Schaeuble told reporters earlier that debt forgiveness was legally impossible, not just for Germany but for other euro zone countries, if it was linked to a new guarantee of loans.

"You cannot guarantee something if you're cutting debt at the same time," he said. That did not preclude possible debt relief at a later stage if Greece completed its adjustment program and no longer needs new loans.

At Germany's insistence, earmarked revenue and aid payments will go into a strengthened "segregated account" to ensure that Greece services its debts.

A source familiar with IMF thinking said a loan write-off once Greece has fulfilled its adjustment program would be the simplest way to make its debt viable, but other methods such as forgoing interest payments, or lending at below market rates and extending maturities could all help.

The German banking association (BDB) said a fresh "haircut" or forced reduction in the value of Greek sovereign debt, must only happen as a last resort.

The ministers agreed to reduce interest on already extended bilateral loans from the current 150 basis points above financing costs to 50 bps.

No figures were announced for the debt buy-back in an effort to avoid triggering a rise in market prices in anticipation of a buyer. But before the meetings, officials had spoken of a 10 billion euro buy-back, that would achieve a net reduction of about 20 billion euros in the debt stock.

German central bank governor Jens Weidmann has suggested that Greece could "earn" a reduction in debt it owes to euro zone governments in a few years if it diligently implements all the agreed reforms. The European Commission backs that view.

An opinion poll published on Monday showed Greece's anti-bailout SYRIZA party with a four-percent lead over the Conservatives who won election in June, adding to uncertainty over the future of reforms.

(Additional reporting by Robert-Jan Bartunek, Ethan Bilby, Luke Baker in Brussels, Reinhardt Becker in Berlin; Writing by Paul Taylor; Editing by Luke Baker)

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