Beijing to allow visa-free transit trips

BEIJING: China will allow transit passengers from 45 countries including the US, Canada and all members of the EU to spend up to 72 hours in Beijing without a visa from next month, city authorities said.

The move would "strongly spur the development of the tourism industry, speed up building of an international city (and) expand contacts with the rest of the world," the Beijing Tourism Administration said on its website.

The policy only applies to travellers in transit to a third country, and not for return flights to the capital, whose attractions include the vast Forbidden City.

Eligible nationalities include the United States, Canada, European Union countries, Brazil, Argentina, Australia, South Korea, Japan and the United Arab Emirates.

The city will "starting on January 1, 2013, implement a policy allowing foreigners from 45 countries with visas and plane tickets to a third country to transit through Beijing for 72 hours without a visa", the tourism body said.

But travellers would "face punishment" if they left the capital and lawbreakers would be banned for life, Gao Huada, deputy director of the city's exit-entry bureau, was quoted in the China Daily as saying on Thursday.

China's financial hub Shanghai already allows some foreigners in transit to visit the city for 48 hours, its government says on its website, including those from the US, some European countries, Japan, South Korea and Singapore.

Other travellers passing through the country are required to remain in the airport.

Beijing's airport is the second busiest in the world, having handled 47 million passengers in the first seven months of this year, according to the industry body Airports Council International.

Shanghai airport ranks 20th busiest with 26 million travellers during the same period.

- AFP/ck

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Akali leader arrested for killing police official

AMRITSAR: A leader of Punjab's ruling Shiromani Akali Dal and an accomplice were arrested on Thursday for allegedly killing a police official who had objected to them harassing his daughter, police here said.

Police commissioner Ram Singh said the main accused, Ranjit Singh Rana, was arrested from the border belt of Amritsar district on Thursday morning along with another accused. Rana had been stalking assistant sub-inspector (ASI) Ravinder Pal Singh's daughter for the last few days.

Two other accused in the killing of Ravinder Pal are absconding, police said.

The ASI was allegedly shot dead by Rana and his accomplices after he objected to his daughter being subjected their harassment on Wednesday.

The incident took place near the Chhehrata police station, on the outskirts of Amritsar city, 250 km from the state capital Chandigarh.

Ravinder Pal's daughter had complained that some youth used to harass her. The ASI objected to this and confronted the youth. Following an argument, Rana fired at him and his daughter and left them injured.

Eyewitnesses told the police later that Rana and his accomplices came back to the spot in a jeep later and shot at the ASI in the chest from close range.

Ravinder Pal was rushed to a private hospital where he was declared dead.

The Akali Dal expelled Rana, who is a general secretary of the district unit of the party.

District unit president US Sandhu said that Rana was inducted into the party September this year and had now been expelled.

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Study could spur wider use of prenatal gene tests

A new study sets the stage for wider use of gene testing in early pregnancy. Scanning the genes of a fetus reveals far more about potential health risks than current prenatal testing does, say researchers who compared both methods in thousands of pregnancies nationwide.

A surprisingly high number — 6 percent — of certain fetuses declared normal by conventional testing were found to have genetic abnormalities by gene scans, the study found. The gene flaws can cause anything from minor defects such as a club foot to more serious ones such as mental retardation, heart problems and fatal diseases.

"This isn't done just so people can terminate pregnancies," because many choose to continue them even if a problem is found, said Dr. Ronald Wapner, reproductive genetics chief at Columbia University Medical Center in New York. "We're better able to give lots and lots of women more information about what's causing the problem and what the prognosis is and what special care their child might need."

He led the federally funded study, published in Thursday's New England Journal of Medicine.

A second study in the journal found that gene testing could reveal the cause of most stillbirths, many of which remain a mystery now. That gives key information to couples agonizing over whether to try again.

The prenatal study of 4,400 women has long been awaited in the field, and could make gene testing a standard of care in cases where initial screening with an ultrasound exam suggests a structural defect in how the baby is developing, said Dr. Susan Klugman, director of reproductive genetics at New York's Montefiore Medical Center, which enrolled 300 women into the study.

"We can never guarantee the perfect baby but if they want everything done, this is a test that can tell a lot more," she said.

Many pregnant women are offered screening with an ultrasound exam or a blood test that can flag some common abnormalities such as Down syndrome, but these are not conclusive.

The next step is diagnostic testing on cells from the fetus obtained through amniocentesis, which is like a needle biopsy through the belly, or chorionic villus sampling, which snips a bit of the placenta. Doctors look at the sample under a microscope for breaks or extra copies of chromosomes that cause a dozen or so abnormalities.

The new study compared this eyeball method to scanning with gene chips that can spot hundreds of abnormalities and far smaller defects than what can be seen with a microscope. This costs $1,200 to $1,800 versus $600 to $1,000 for the visual exam.

In the study, both methods were used on fetal samples from 4,400 women around the country. Half of the moms were at higher risk because they were over 35. One-fifth had screening tests suggesting Down syndrome. One-fourth had ultrasounds suggesting structural abnormalities. Others sought screening for other reasons.

"Some did it for anxiety — they just wanted more information about their child," Wapner said.

Of women whose ultrasounds showed a possible structural defect but whose fetuses were called normal by the visual chromosome exam, gene testing found problems in 6 percent — one out of 17.

"That's a lot. That's huge," Klugman said.

Gene tests also found abnormalities in nearly 2 percent of cases where the mom was older or ultrasounds suggested a problem other than a structural defect.

Dr. Lorraine Dugoff, a University of Pennsylvania high-risk pregnancy specialist, wrote in an editorial in the journal that gene testing should become the standard of care when a structural problem is suggested by ultrasound. But its value may be incremental in other cases and offset by the 1.5 percent of cases where a gene abnormality of unknown significance is found.

In those cases, "a lot of couples might not be happy that they ordered that test" because it can't give a clear answer, she said.

Ana Zeletz, a former pediatric nurse from Hoboken, N.J., had one of those results during the study. An ultrasound suggested possible Down syndrome; gene testing ruled that out but showed an abnormality that could indicate kidney problems — or nothing.

"They give you this list of all the things that could possibly be wrong," Zeletz said. Her daughter, Jillian, now 2, had some urinary and kidney abnormalities that seem to have resolved, and has low muscle tone that caused her to start walking later than usual.

"I am very glad about it," she said of the testing, because she knows to watch her daughter for possible complications like gout. Without the testing, "we wouldn't know anything, we wouldn't know to watch for things that might come up," she said.

The other study involved 532 stillbirths — deaths of a fetus in the womb before delivery. Gene testing revealed the cause in 87 percent of cases versus 70 percent of cases analyzed by the visual chromosome inspection method. It also gave more information on specific genetic abnormalities that couples could use to estimate the odds that future pregnancies would bring those risks.

The study was led by Dr. Uma Reddy of the National Institute of Child Health and Human Development.

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Online:

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

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

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McAfee Arrested for Entering Guatemala Illegally

Eccentric software tycoon John McAfee, wanted in Belize for questioning in the shooting death of his neighbor, has been arrested in Guatemala for entering the country illegally, his Guatemala attorney told ABC News.

Before McAfee's arrest, he told ABC News in an exclusive interview he would be seeking asylum in Guatemala. McAfee was arrested by the Central American country's immigration police and not the national police, said his attorney, who was confident his client would be released within hours.

"Thank God I am in a place where there is some sanity," said McAfee, 67, before his arrest. "I chose Guatemala carefully."

McAfee said that in Guatemala, the locals aren't surprised when he says the Belizean government is out to kill him.

"Instead of going, 'You're crazy,' they go, 'Yeah, of course they are,'" he said. "It's like, finally, I understand people who understand the system here."

But McAfee added he has not ruled out moving back to the United States, where he made his fortune as the inventor of anti-virus software, and that despite losing much of his fortune he still has more money than he could ever spend.

In his interview with ABC News, a jittery, animated but candid McAfee called the media's representation of him a "nightmare that is about to explode," and said he's prepared to prove his sanity.

McAfee has been on the run from police in Belize since the Nov. 10 murder of his neighbor, fellow American expatriate Greg Faull.

During his three-week journey, said McAfee, he disguised himself as handicapped, dyed his hair seven times and hid in many different places during his three-week journey.

He dismissed accounts of erratic behavior and reports that he had been using the synthetic drug bath salts. He said he had never used the drug, and said statements that he had were part of an elaborate prank.

Johan Ordonez/AFP/Getty Images

John McAfee Interview: Software Mogul Leaves Belize Watch Video

John McAfee Interview: Software Millionaire on the Run Watch Video

John McAfee: Software Millionaire Not Officially a Suspect Watch Video

Investigators said that McAfee was not a suspect in the death of the former developer, who was found shot in the head in his house on the resort island of San Pedro, but that they wanted to question him.

McAfee told ABC News that the poisoning death of his dogs and the murder just hours later of Faull, who had complained about his dogs, was a coincidence.

McAfee has been hiding from police ever since Faull's death -- but Telesforo Guerra, McAfee's lawyer in Guatemala, said the tactic was born out of necessity, not guilt.

"You don't have to believe what the police say," Guerra told ABC News. "Even though they say he is not a suspect they were trying to capture him."

Guerra, who is a former attorney general of Guatemala, said it would take two to three weeks to secure asylum for his client.

According to McAfee, Guerra is also the uncle of McAfee's 20-year-old girlfriend, Samantha. McAfee said the government raided his beachfront home and threatened Samantha's family.

"Fifteen armed soldiers come in and personally kidnap my housekeeper, threaten Sam's father with torture and haul away half a million dollars of my s***," claimed McAfee. "If they're not after me, then why all these raids? There've been eight raids!"

Before his arrest, McAfee said he would hold a press conference on Thursday in Guatemala City to announce his asylum bid. He has offered to answer questions from Belizean law enforcement over the phone, and denied any involvement in Faull's death.

False Report of McAfee Arrest on Mexico Border

Over the weekend, a post on McAfee's blog claimed that he had been detained on the Belizean/Mexico border.

On Monday, a follow-up post said that the "John McAfee" taken into custody was actually a "double" who was carrying a North Korean passport with McAfee's name.

That post claimed that McAfee had already escaped Belize and was on the run with Samantha and two reporters from Vice Magazine.

McAfee did not reveal his location in that post, and a spokesman for Belize's National Security Ministry, Raphael Martinez, told ABC News on Monday that no one by McAfee's name was ever detained at the border and that Belizean security officials believed McAfee was still in their country.

However, a photo posted by Vice magazine on Monday with their article, "We Are With John McAfee Right Now, Suckers," apparently had been taken on an iPhone 4S and had location information embedded in it that revealed the exact coordinates where the photo was taken -- in the Rio Dulce National Park in Guatemala -- as reported by Wired.com.

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Philippines' biggest typhoon kills at least 82, many buried under mud

MANILA (Reuters) - The Philippines' strongest typhoon this year was headed towards tourist destinations on Wednesday after hitting a southern island, destroying homes, causing landslides and killing at least 82 people, but many more are reported dead and missing.

Typhoon Bopha, with central winds of 120 kph (75 mph) and gusts of up to 160 kph (93 mph), was expected to hit beach resorts and dive spots in northern Palawan, the weather bureau said on Wednesday.

Interior Minister Manuel Roxas confirmed 82 people had died and scores were missing after Bopha made landfall on Tuesday.

But the toll is likely to be closer to 100 with police and media reports of other deaths still to be confirmed.

About 20 typhoons hit the Philippines annually, often causing death and destruction. Typhoon Washi killed 1,500 people in 2011.

More than half those confirmed killed, many buried under mud and collapsed houses, were from an area near an army outpost in Compostela Valley province on southern Mindanao.

"We have already accounted 43 bodies and we're still looking for more, including nine soldiers," said Major-General Ariel Bernardo, an army division commander.

BURIED UNDER MUD

Bernardo said two dozen people had been pulled from under layers of mud and were being treated in local hospitals. Video showed dozens of bloodied survivors, their faces covered with thick cake of mud, at a shelter in the province.

Mudslides and massive flooding caused by swollen rivers inundated most farms in Compostela Valley.

"In the town of Nabunturan, our farms were totally wiped out, there was flooding in every barangay (village)," police Major Hector Grijaldo. "All banana plantations were totally wiped out. What we see standing are coconut trees, all others were either uprooted or felled."

Coastal areas in nearby Davao Oriental province also bore the brunt of Bopha's fierce winds and rain.

Rommil Mitra, provincial police chief, said 52 people were reported killed in Boston and Cateel towns, most of them crushed by fallen trees, collapsed homes and flying debris.

"The winds were really very strong," Mitra said. "I was told the force of the wind could even lift an army truck loaded with troops from the ground."

Most of the affected areas remained isolated due to power outages, lack of communications and destroyed roads and bridges. Helicopters were ferrying troops in search and rescue operations.

Tens of thousands of people remained in temporary shelter areas as local officials appealed for food, water and warm clothes for displaced families. Schools remained closed and dozens of domestic flights were suspended on Wednesday.

(Reporting By Manuel Mogato and Rosemarie Francisco; Editing by Michael Perry)

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PSYprise for 'Gangnam Style' fans

SINGAPORE: Tired of 'Gangnam Style'? Certainly not the more than 4000 people who turned up to catch PSY at the free Marina Bay Sands "Give back to Singapore" concert over the weekend.

As for those who can't get enough of the South Korean sensation and weren't fast enough to be among the lucky few to dance with the 'Gangnam Style' star, the good news is that it will take more than just fast fingers and a good internet connection to see PSY live in Singapore again.

Capping his one-night, under one-hour show in Singapore, the sensation from South Korea who repeatedly said he loved the Lion City, announced to whoops and cheers that he'd be back once his new single and album is released in March next year.

By then, more fans will hopefully get to see and hear more of PSY than what was offered at Saturday's open-air event at Marina Bay Sand's Event Plaza.

The gates for the free concert opened two hours ahead of the 8pm show that saw the main star showing up almost half an hour later.

The restless crowd was kept entertained and psyched to PSY's YouTube hit by 26 dancers from O School, a Singapore social enterprise that helps fund the education of teens from low income homes through its dance school.

On stage, the team of young dancers, including 10-year-old Calvin Go, added their own flavour to the now famous 'Gangnam Style' dance routine that was learnt in an hour on the concert day itself, according to Kenny Low, Managing Director of O School.

But there's nothing like the real thing.

When Psy finally took centre-stage, the crowd went wild with shouts of "oppa!", a Korean term of endearment used by females to refer to an older male friend or older brother, and also a key word in the Korean hit song.

And that was as close to 'Gangnam Style' anyone got at the start of the concert as the atypical K pop sensation launched into "Champion".

The single from his third album '3 Psy' released in 2002, seemed a fitting start to the concert organised by MBS that also showcased its adopted charity, O School, that helps keep teens from dropping out of school.

PSY, a college dropout who is now a champion in his own right, later told the crowd laughingly, "I was a really bad student... I got suspended so many times" as he "officially introduced" himself.

"Academically, I was (a) bad student, but creatively, I was (a) good student" was the piece of inPSYration delivered by the 34-year-old who swept four awards at the recent 2012 MNet Asian Music Awards (MAMA) with 'Gangnam Style' after years of being sidelined.

Despite a whirlwind tour of the region before landing in Singapore just hours before his concert, the hyperactive PSY continued to surprise during his appearance.

Even with concert-goers and non-ticket on-lookers standing around the Event Plaza loudly cheering, it wasn't enough for PSY, who suddenly stopped his second song to urge the crowd on.

"Show me energy and I'll show you energy! I want every single person to jump!" he yelled midway into "Right Now", the single from his fifth album "PSYFIVE" released in 2010.

But it seemed that the crowd was saving its energy for one song and of course, the man himself knew what it was.

"This song is called… No, no no, just give me the beat," Psy declared unable to hide the grin on his face as he dived into his third and final song for the night.

That's when the crowd really began to scream, almost drowning out the now-familiar electro-bass beats pounding out of the speakers around the Event Plaza.

Not a word was missed or a move forgotten as the crowd went PSYchotic, shouting the Korean lyrics of 'Gangnam Style' while trying to horse-dance in what limited space they could afford in the sea of sardine-packed bodies.

Adults, teens and even grey-haired elders were seen moving to the infectious tune.

In a flash, the one-hour concert was over.

PSY had been on stage less than three quarters of that time, but fans didn't seem to mind.

"It was a good experience although it was very short" said Yu Ping, a 15-year-old student who got her ticket from a family friend.

"Maybe he's just very busy" said the understanding fan.

Marina Bay Sands which had said that the free concert would happen come rain or shine, was likely glad that Singapore's rainy spell held off for the night and the stars remained in alignment for PSY's one-night appearance.

"We had a slot on our calendar, he had a slot on his calendar" said Mr. George Tanasijevich, President and Chief Executive Officer of MBS of just how the most well-known and in-demand person in the world was clinched for the public event.

"I think it came together pretty quickly", Tanasijevich shared with channelnewsasia.com on the sidelines of the concert.

"Maybe it's a little less strategic than you think it is... It's more opportunistic," he added with a laugh.

It was however, definitely good strategy that allowed MBS' designated charity, O School, to raise its public profile through the event.

"The talents of O School are incredible dancers who demonstrated professionalism and excellent showmanship during the showcase" said Tanasijevich.

And what better reward for the young dancers than being the opening act for PSY? Well, probably the man himself ... with the dancers treated to an exclusive backstage Meet and Greet Session after the concert while the crowds lingered, hoping to spy PSY.

-CNA/fl

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SC dismisses Sangma's petition challenging Pranab Mukherjee's election

NEW DELHI: The Supreme Court on Wednesday dismissed Purno Sangma's petition challenging Pranab Mukherjee's election as the President.

The SC bench said that Sangma's petition did not disclose material to pass the stage of early scrutiny.

A five-judge bench of the apex court decided by 3:2 majority that the petition did not deserve to be entertained for detail trial, which if ordered would have entailed possible cross examination of Pranab Mukherjee.

The SC on November 21 had said that it would take a final call on entertaining former Lok Sabha Speaker P A Sangma's plea, challenging the election of Pranab Mukherjee as President, on December 5.

"Arguments concluded. We shall pass the order on December 5," a five-judge bench headed by Chief Justice Altamas Kabir said after Ram Jethmalani, counsel for Sangma, wrapped up arguments with the claim that the plea deserved a regular hearing, as it affects the "whole nation" because the person who became President would be custodian of the Constitution for next five years.

Mukherjee was represented by eminent lawyer Harish Salve and attorney general G E Vahanvati.

(With inputs from ANI)

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Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Subway Push Murder Suspect Implicated Self: Police

A suspect believed to be responsible for throwing a man into the path of an oncoming New York City subway train who was taken into custody today has made statements implicating himself, police said.

According to Deputy Commissioner for Public Information Paul Browne, the suspect has been questioned by police since at least early afternoon and while the suspect is in police custody, he has not been officially charged.

Police are continuing to question the suspect and more lineups have been scheduled for tomorrow, Browne said.

Police have not released the suspect's name but began questioning him Tuesday afternoon about the death of Ki-Suck Han, 58, of Queens, N.Y.

Han was tossed onto the subway track at 49th Street and Seventh Avenue around 12:30 p.m. Monday after Han confronted a mumbling man who was alarming other passengers on the train platform. Han tried to scramble back onto the platform, but was crushed by an oncoming train.

The suspect fled the station, prompting a police dragnet for a man described by witnesses and see on surveillance video as a 6-foot-tall, 200-pound black man wearing dreadlocks in his hair.

Witnesses tried to revive the victim after he was hit and provided descriptions of the suspect to police.

Dr. Laura Kaplan, medical resident at Beth Israel Medical Center who was standing on the platform during the incident rushed to give Han aid after he was hit, she said in a statement released by her medical practice today.

New York Police Department

Bystanders Pull Mom, Son From Subway Tracks Watch Video

"A security guard and I performed 3-4 minutes of chest compressions. I hope the family may find some comfort in knowing about the kindness of these good Samaritans, as they endure this terrible loss," Kaplan said.

"I would like the family to know that many people in the station tried to help Mr. Han by alerting the subway personnel," she said.

Kaplan said she wanted to console the family of Han, who she called "a brave man trying to protect other passengers that he did not know."

The suspect had reportedly been mumbling to himself and disturbing other passengers, according to ABC News affiliate WABC. Police told WABC that the suspect could be mentally disturbed.

The suspect could be heard arguing with Han just moments before he hurled Han onto the track bed, according to surveillance video released by the police. The suspect is heard telling the victim to stand in line and "wait for the R train."

A freelance photographer for the New York Post was on the platform and said he ran towards the train flashing his camera hoping to alert the train to stop in time, but the train caught Han against the shoulder deep platform wall.

The photographer, R. Umar Abbasi, caught an eerie photo of Han with his head and arms above the platform and staring at the oncoming train.

Han was treated by EMS workers on the platform for traumatic arrest and rushed to Roosevelt Hospital, where he was pronounced dead, according to the Fire Department of New York.

"I just heard people yelling. The train came to an abrupt stop about three-quarters into the station and that's when I heard a man was hit by a train," Patrick Gomez told ABC News affiliate WABC.

Police set up a command post outside the train station Monday night searching nearby surveillance cameras to try and get a clear image of the suspect, reports WABC. They said Tuesday that the investigation is ongoing.

Anyone with information is asked to call Crime Stoppers at 1-800-577-TIPS (8477). The public can also submit tips by logging onto the Crime Stoppers website at www.nypdcrimestoppers.com or by texting their tips to 274637 (CRIMES) then enter TIP577. All calls are strictly confidential.

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Israel says will stick with settlement plan despite condemnation

JERUSALEM (Reuters) - Israel rejected concerted criticism from the United States and Europe on Monday over Prime Minister Benjamin Netanyahu's decision to expand settlement building after the United Nations' de facto recognition of Palestinian statehood.

Washington urged Israel to reconsider its plan to erect 3,000 more homes in the occupied West Bank and East Jerusalem, saying the move hindered peace efforts with the Palestinians.

Britain, France, Spain, Sweden and Denmark summoned the Israeli ambassadors in their capitals to give similar messages.

An official in Netanyahu's office said Israel would not bend. "Israel will continue to stand by its vital interests, even in the face of international pressure, and there will be no change in the decision that was made," the official said.

Angered by the U.N. General Assembly's upgrading on Thursday of the Palestinians' status in the world body from "observer entity" to "non-member state", Israel said the next day it would build the new dwellings for settlers.

Such projects, on land Israel captured in a 1967 war, are considered illegal by most world powers and have routinely drawn condemnation from them. Approximately 500,000 Israelis and 2.5 million Palestinians live in the two areas.

In a shift that raised the alarm among Palestinians and in world capitals, Netanyahu's pro-settler government also ordered "preliminary zoning and planning work" for thousands of housing units in areas including the "E1" zone east of Jerusalem.

Such construction in the barren hills of E1 has never been put into motion in the face of opposition from Israel's main ally, the United States. Building in the area could bisect the West Bank, cut off Palestinians from Jerusalem and further dim their hopes for a contiguous state.

Israeli television stations reported Jerusalem's district planning commission would soon approve plans for several thousand more housing units, including more than 1,000 Israel had shelved two years ago after angering Washington by publishing the plans before a visit by Vice President Joe Biden.

The settlement plan, U.N. Secretary-General Ban Ki-moon said, would deal "an almost fatal blow" to a two-state solution to the Israeli-Palestinian conflict.

French President Francois Hollande said he was "extremely concerned" and Washington made clear it would not back such Israeli retaliation over the U.N. vote, sought by Palestinians after peace talks collapsed in 2010 over settlement building.

"We urge Israeli leaders to reconsider these unilateral decisions and exercise restraint as these actions are counterproductive and make it harder to resume direct negotiations to achieve a two state solution," White House spokesman Jay Carney told a briefing.

Ahead of a Netanyahu visit this week, Germany, considered Israel's closest ally in Europe, urged it to refrain from expanding settlements, and Russia said it viewed the Israeli moves with serious concern.

RETALIATION

Israeli Finance Minister Yuval Steinitz said Israel could not have remained indifferent to the Palestinians' unilateral move at the United Nations.

"I want to tell you that those same Europeans and Americans who are now telling us 'naughty, naughty' over our response, understand full-well that we have to respond, and they themselves warned the Palestinian Authority," he said.

Palestinian chief negotiator Saeb Erekat said building in E1 "destroys the two-state solution, (establishing) East Jerusalem as the capital of Palestine and practically ends the peace process and any opportunity to talk about negotiations in the future".

The United States, one of the eight countries to vote alongside Israel against the Palestinian resolution at the General Assembly, has said both were counterproductive to the resumption of direct peace talks.

In Europe, only the Czech Republic voted against the status upgrade while many countries, including France, backed it. Netanyahu plans to visit Prague this week to express his thanks.

In the Gaza Strip, Sami Abu Zuhri, spokesman for the governing Hamas Islamist movement, called the settlements "an insult to the international community, which should bear responsibility for Israeli violations and attacks on Palestinians".

Israeli police arrested three Jewish settlers on Monday whom they suspect of arson and other crimes against Palestinian property in the West Bank, including the torching of a car.

Attackers have often proclaimed they are exacting a "price tag" for steps taken against the settler movement by Palestinians, or by the Israeli government.

Alongside the settlement plans, Israel announced it would withhold about $100 million in Palestinian tax revenues from the Palestinian Authority, which exercises limited self-rule in the West Bank, saying Palestinians owed $200 million to Israeli firms.

"These are not steps towards peace, these are steps towards the extension of the conflict," Spanish Foreign Minister Jose Manuel Garcia-Margallo said.

Only three weeks ago, Netanyahu won strong European and U.S. support for a Gaza offensive that Israel said was aimed at curbing persistent cross-border rocket fire.

Favored by opinion polls to win a January 22 national election, he brushed off the condemnation and complaints at home that he is deepening Israel's diplomatic isolation.

Netanyahu told his cabinet on Sunday that his government "will carry on building in Jerusalem and in all the places on the map of Israel's strategic interests".

But while his housing minister has said the government would soon invite bids from contractors to build 1,000 homes for Israelis in East Jerusalem and more than 1,000 in West Bank settlement blocs, the E1 plan is still in its planning stages.

"No one will build until it is clear what will be done there," the minister, Ariel Attias, said on Sunday.

Israel froze much of its activities in E1 under pressure from former U.S. President George W. Bush, and the area has been under the scrutiny of his successor, Barack Obama.

Israel cites historical and Biblical links to the West Bank and Jerusalem and regards all of the holy city as its capital, a claim that is not recognized internationally.

(Additional reporting by Crispian Balmer, Dan Williams, Nidal al-Mughrabi in Gaza, Jihan Abdalla in Ramallah, Steve Gutterman in Moscow, Gareth Jones in Berlin, John Irish and Elizabeth Pineau in Paris and Tim Castle in London; writing by Jeffrey Heller; editing by Philippa Fletcher)

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