Japan polls tip big win for opposition

TOKYO: Japan's main opposition party will comfortably win the general election this month, opinion polls showed Thursday, the first time surveys have indicated anything other than a fragile coalition.

The hawkish chief of the conservative Liberal Democratic Party (LDP) Shinzo Abe is also tipped to win back the premiership, an office he held for around a year until 2007, according to a telephone poll conducted by Kyodo news agency.

The LDP is on course to win up to 306 of the 480 seats in lower house of parliament on December 16, with the projected tally representing a huge jump from the 118 seats the party currently has.

The survey of 123,700 eligible voters showed Prime Minister Yoshihiko Noda's Democratic Party of Japan (DPJ) will see its number of seats plunge to between 57 and 82 from the 308 it swept to power with in 2009.

Around 1,500 candidates, fielded by 12 parties or standing as independents, are vying for the 480 seats -- 300 in single-seat constituencies and 180 allocated for proportional representation in 11 blocs.

Previous opinion polls have shown a much tighter race, with commentators expecting the election would leave Japan with a fragile coalition government.

Kyodo noted about half the voters said they had not yet decided on who to vote for.

Similar surveys by the mass-circulation Asahi and Yomiuri dailies, released Thursday, also showed the LDP was gaining momentum and was on course to win a single-party majority.

The Kyodo survey said the LDP's potential junior coalition partner New Komeito party is likely to win between 25 and 31 seats.

If the two parties joined forces they would have a two-thirds majority in the powerful lower house, giving them the right to overrule the DPJ-dominated upper house.

The Japan Restoration Party, an unwieldy coalition of followers of Osaka's outspoken mayor Toru Hashimoto and of the China-bashing former governor of Tokyo, Shintaro Ishihara, is likely to become a third-largest party, the polls showed.

The Tomorrow Party of Japan, a hastily cobbled-together grouping of DPJ malcontents and a left-leaning newcomers pledging to end Japan's nuclear power programme in 10 years, could have just 15 seats.

This month's vote is being seen as a verdict on the DPJ's three-year rule, which included the turbulent months after the nuclear disaster plunged the nation into its biggest crisis since World War II.

- AFP/ck

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Nasa releases satellite imagery of India on Diwali night

WASHINGTON: Nasa, the national space agency of the US, today released a black and white satellite imagery of India this Diwali night, cautioning people against the fake image in circulation on the social media.

"On November 12, 2012, the Visible Infrared Imaging Radiometer Suite (VIIRS) on the Suomi NPP satellite captured this nighttime view of southern Asia," Nasa said releasing a picture of India on this Diwali night.

"The image is based on data collected by the VIIRS 'day- night band', which detects light in a range of wavelengths from green to near-infrared. The image has been brightened to make the city lights easier to distinguish," it said.

Nasa said most of the bright areas in the imagery released by it are cities and towns in India, the country with the world's largest Hindu population.

"India is home to more than 1.2 billion people and has 30 cities with populations over 1 million. (For comparison, China has 62 cities with more than 1 million residents and the United States has 9)," it said.

Cities in Bangladesh, Nepal, and Pakistan are also visible near the edges of the image.

"An image that claims to show the region lit for Diwali has been circulating on social media websites and the Internet in recent years. In fact, it does not show what it claims. That image, based on data from the Operational Linescan System flown on US Defense Meteorological Satellite Program (DMSP) satellites, is a color-composite created in 2003 by NOAA scientist Chris Elvidge to highlight population growth over time," Nasa said.

"In that image, white areas show city lights that were visible prior to 1992, while blue, green, and red shades indicate city lights that became visible in 1992, 1998, and 2003 respectively," it said.

"In reality, any extra light produced during Diwali is so subtle that it is likely imperceptible when observed from space," Nasa said.

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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 Guetemala. 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 Millionaire on the Run Watch Video

John McAfee: Software Millionaire Not Officially a Suspect Watch Video

Anti-Virus Pioneer John McAfee Hiding in Belize: Police 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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NATO warns Syria not to use chemical weapons

BRUSSELS/BEIRUT (Reuters) - NATO told Syrian President Bashar al-Assad on Tuesday that any use of chemical weapons in his fight against encroaching rebel forces would be met by an immediate international response.

The warning from NATO Secretary-General Anders Fogh Rasmussen came as U.S. government sources said Washington had information that Syria was making what could be seen as preparations to use its chemical arsenal.

Syrian forces meanwhile bombarded rebel districts near Damascus in a sustained counter-attack to stem rebel gains around Assad's power base as the insurgency may be entering a decisive phase.

International concern over Syria's intentions has been heightened by reports that its chemical weapons have been moved and could be prepared for use.

"The possible use of chemical weapons would be completely unacceptable for the whole international community and if anybody resorts to these terrible weapons I would expect an immediate reaction from the international community," Rasmussen told reporters at the start of a meeting of alliance foreign ministers in Brussels.

The chemical threat made it urgent for the alliance to send Patriot anti-missile missiles to Turkey, Rasmussen said.

The French Foreign Ministry referred to "possible movements on military bases storing chemical weapons in Syria" and said the international community would react if they were used.

Britain has told the Syrian government that any use of chemical weapons would have "serious consequences", Foreign Secretary William Hague said.

U.S. President Barack Obama on Monday told Assad not to use chemical weapons, without saying how the United States might respond. The Foreign Ministry in Damascus said it would never use such weapons against Syrians.

CLASSIFIED INTELLIGENCE

The U.S. has collected what has been described as highly classified intelligence information demonstrating that Syria is making what could be construed as preparations to use elements of its extensive chemical weapons arsenal, two U.S. government sources briefed on the issue said.

One of the sources said that there was no question that the US "Intelligence community" had received information pointing to "preparations" under way in Syria related to chemical weapons. The source declined to specify what kind of preparations had been reported, or how close the intelligence indicated the Syrians were to deploying or even using the weapons.

Western military experts say Syria has four suspected chemical weapons sites, and it can produce chemical weapons agents including mustard gas and sarin, and possibly also VX nerve agent. The CIA has estimated that Syria possesses several hundred liters of chemical weapons and produces hundreds of tonnes of agents annually.

The fighting around Damascus has led foreign airlines to suspend flights and prompted the United Nations and European Union to reduce their presence in the capital, adding to a sense that the fight is closing in.

The army fightback came a day after the Syrian foreign ministry spokesman was reported to have defected in a potentially embarrassing blow to the government.

The Syrian Observatory for Human Rights said 200 people were killed across Syria on Monday, more than 60 of them around Damascus. Assad's forces bombarded districts to the south-east of the capital on Tuesday, near to the international airport, and in the rebel bastion of Daraya to the south-west.

Opposition footage posted on the Internet showed a multiple rocket launcher fire 20 rockets, which activists said was filmed at the Mezze military airport in Damascus.

Reuters could not independently verify the footage due to the government's severe reporting restrictions.

In central Damascus, shielded for many months from the full force of a civil war in which 40,000 people have been killed, one resident reported hearing several loud explosions.

"I have heard four or five thunderous blows. It could be barrel bombs," she said, referring to makeshift bombs which activists say Assad's forces have dropped from helicopters on rebel-dominated areas.

MORTAR ATTACK

The state news agency said that 28 students and a teacher were killed near the capital when rebels fired a mortar bomb on a school. Rebels have targeted government-held residential districts of the capital.

The mainly Sunni Muslim rebel forces have made advances in recent weeks, seizing military bases, including some close to Damascus, from forces loyal to Assad, who is from Syria's Alawite minority linked to Shi'ite Islam.

Faced with creeping rebel gains across the north and east of the country, and the growing challenge around the capital, Assad has increasingly resorted to air strikes against the insurgents.

A diplomat in the Middle East said Syrian Foreign Ministry spokesman Jihad Makdissi had left the country and defected, while the British-based Observatory said it had information that he flew from Beirut on Monday afternoon heading for London.

In Beirut, a diplomat said Lebanese officials had confirmed that Makdissi spent several days in Beirut before leaving on Monday, but could not confirm his destination.

"We're aware of reports that he has defected and may be coming to the UK. We're seeking clarification," a Foreign Office spokeswoman in London said.

Makdissi was the public face to the outside world of Assad's government as it battled the 20-month-old uprising. But he had barely appeared in public for several weeks before Monday's report of his defection.

He had little influence in a system largely run by the security apparatus and the military. But Assad's opponents will see the loss of such a high profile figure, if confirmed, as further evidence of a system crumbling from within.

The United Nations and European Union both said they were reducing their presence in Syria in response to the escalated violence around the capital.

A spokesman for U.N. humanitarian operations said the move would not stop aid deliveries to areas which remained accessible to relief convoys.

"U.N.-funded aid supplies delivered through SARC (Syrian Arab Red Crescent) and other charities are still moving daily where the roads are open," Jens Laerke told Reuters in Geneva.

"We have not suspended our operation, we are reducing the non-essential international staff."

Three remaining international staff at the European Union delegation, who stayed on in Damascus after the departure of most Western envoys, crossed the border into Lebanon on Tuesday after pulling out of the Syrian capital.

(Additional reporting by David Brunnstrom in Brussels, Khaled Yacoub Oweis in Cairo, Erika Solomon, Oliver Holmes and Ayat Basma in Beirut, Mark Hosenball, Mohammed Abbas and David Cutler in London, and Stephanie Nebehay in Geneva; Editing by Giles Elgood)

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N. Korea completes installing rocket

SEOUL: North Korea has completed installing a long-range rocket on its launch pad, ahead of its planned launch this month in defiance of widespread international condemnation, a report said Wednesday.

All three stages of the Unha-3 rocket have been placed on the pad at the North's Sohae satellite launch station, a South Korean government source told Yonhap news agency.

"Some workers are pulling out of the site," the source said.

Pyongyang announced on Saturday that it intends to launch the rocket between December 10 and 22.

The United States and its key Asian allies South Korea and Japan have condemned the move as a disguised ballistic missile test that violates UN resolutions triggered by Pyongyang's two nuclear tests in 2006 and 2009.

North Korea is now expected to install support equipment, such as radar and cameras, before fueling the carrier, Yonhap said.

US Secretary of State Hillary Clinton on Tuesday urged her NATO allies and Russia to press North Korea to call off the mission.

"The United States is deeply concerned about North Korea's recent announcement that it plans to carry out another rocket launch," Clinton told a meeting of the NATO-Russia council.

"We urge everyone here to publicly call upon North Korea to comply fully with its UN Security Council obligations."

Pyongyang insists the launch is a "peaceful" and purely scientific mission aimed at placing a satellite in orbit.

A previous attempt in April failed when the carrier exploded shortly after take-off.

China has expressed "concern" at the launch plan, with the foreign ministry urging "relevant parties (to) act in a way that is more conducive to the stability of the Korean peninsula".

Russia added its "regret" and noted that North Korea was obliged to abide by UN resolutions.

But analysts say the international community is running out of options for pressuring the impoverished but nuclear-armed North, which is already under layers of sanctions.

The six-party, aid-for-denuclearisation talks have been at a standstill since Pyongyang walked of the forum in April 2009. It staged its second nuclear test a month later.

- AFP/ck

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India urges Israel to speed up defence projects

NEW DELHI: India has asked Israel to speed up crucial bilateral defence projects, including the around Rs 13,000 crore development of two advanced surface-to-air missile (SAM) systems to arm Indian armed forces against hostile aircraft, drones and helicopters.

This came at the 10th joint working group on defence cooperation here, co-chaired by defence secretary Shashikant Sharma and Israeli defence ministry director-general Major-General Ehud Shani.

While the regional and global security situation, including the recent Israel-Hamas ceasefire, figured in the talks, the focus was on bilateral defence training programmes, exchanges, R&D projects and armament deals.

Israel is India's second largest defence supplier, second only to Russia, but the expansive ties are largely kept under wraps due to political sensitivities. Tel Aviv records military sales worth around $1 billion to New Delhi every year, ranging from Heron and Searcher UAVs, Harpy and Harop 'killer' drones to Barak anti-missile defence systems and Green Pine radars, Python and Derby air-to-air missiles.

Sources said India expressed "concern'' at the "two-year delay'' in completion of the long-range SAM (LR-SAM) project, sanctioned in December 2005 at a cost of Rs 2,606 crore to arm Indian warships.

There are "minor hitches'' even in the bigger Rs 10,076 crore medium-range SAM (MR-SAM) project, sanctioned in February 2009 for air defence squadrons of IAF.

Both the SAM systems, being developed by Israeli Aerospace Industries (IAI) in collaboration with DRDO, have the same missile with an interception range of 70-km. They are to be produced in bulk by defence PSU Bharat Dynamics (BDL) to plug the existing holes in India's air defence cover.

"While the multi-function surveillance and threat radars, weapon control systems with data links and the like of the LR-SAM have all been tested, there has been delay in the missiles being developed by IAI,'' said a source.

"But the Israelis said everything was sorted out now and they will try to make up for the delay. DRDO has already finished its work on the propulsion and other systems,'' he added. Incidentally, the LR-SAM project was to be completed by May this year.

Another major missile project, worth around $1 billion, that Israel could bag is the one to supply third-generation anti-tank guided missiles (ATGMs) to the 1.13-million strong Indian Army. The Army has already trial-evaluated the Israeli 'Spike' ATGM after the US offer of its 'Javelin' missiles was shelved due to Washington's reluctance to undertake "transfer of technology'' to ensure BDL can make them in large numbers, as reported by TOI earlier.

India is also in commercial negotiations for another two advanced Israeli Phalcon AWACS (airborne warning and control systems), capable of detecting hostile aircraft, cruise missiles and other incoming aerial threats far before ground-based radars, at a cost of over $800 million. The first three Phalcon AWACS were inducted by IAF in 2009-2010 under the $1.1 billion tripartite agreement between India, Israel and Russia.

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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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