Exclusive: Huawei partner offered embargoed HP gear to Iran


(Reuters) - A major Iranian partner of Huawei Technologies offered to sell at least 1.3 million euros worth of embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator in late 2010, documents show.

China's Huawei, the world's second largest telecommunications equipment maker, says neither it nor its partner, a private company registered in Hong Kong, ultimately provided the HP products to the telecom, Mobile Telecommunication Co of Iran, known as MCI. Nevertheless, the incident provides new evidence of how Chinese companies have been willing to help Iran evade trade sanctions.

The proposed deal also raises new questions about Shenzhen-based Huawei, which recently was criticized by the U.S. House Intelligence Committee for failing to "provide evidence to support its claims that it complies with all international sanctions or U.S. export laws."

At least 13 pages of the proposal to MCI, which involved expanding its subscriber billing system, were marked "Huawei confidential" and carried the company's logo, according to documents seen by Reuters. In a statement to Reuters, Huawei called it a "bidding document" and said one of its "major local partners," Skycom Tech Co Ltd, had submitted it to MCI.

The statement went on to say, "Huawei's business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations."

In October, Reuters reported that another Iranian partner of Huawei last year tried to sell embargoed American antenna equipment to Iran's second largest mobile operator, MTN Irancell, in a deal the buyer ultimately rejected. The U.S. antenna manufacturer, CommScope Inc, has an agreement with Huawei in which the Chinese firm can use its products in Huawei systems, according to a CommScope spokesman. He added that his company strives to comply fully with all U.S. laws and sanctions.

Huawei has a similar partnership with HP. In a statement, the Palo Alto, Calif., company said, "HP has an extensive control system in place to ensure our partners and resellers comply with all legal and regulatory requirements involving system security, global trade and customer privacy and the company's relationship with Huawei is no different."

The statement added, "HP's distribution contract terms prohibit the sale of HP products into Iran and require compliance with U.S. and other applicable export laws."

Washington has banned the export of computer equipment to Iran for years. The sanctions are designed to deter Iran from developing nuclear weapons; Iran says its nuclear program is aimed purely at producing domestic energy.

CLOSE LINKS

Huawei and its Iranian partner, Skycom, appear to have very close ties.

An Iranian job recruitment site called Irantalent.com describes Skycom as "a leading telecom solution provider" and goes on to list details that are identical to the way Huawei describes itself on its U.S. website: employee-owned, selling "solutions" used by "45 of the world's top 50 telecom operators" and serving "one-third of the world's population."

On LinkedIn.com, several telecom workers list having worked at "Huawei-skycom" on their resumes. A former Skycom employee said the two companies shared the same headquarters in China. And an Iranian telecom manager who has visited Skycom's office in Tehran said, "Everybody carries Huawei badges."

A Hong Kong accountant whose firm is listed in Skycom registration records as its corporate secretary said Friday he would check with the company to see if anyone would answer questions. Reuters did not hear back.

The proposal to MCI, dated October 2010, would have doubled the capacity of MCI's billing system for prepaid customers. The proposal noted that MCI was "growing fast" and that its current system, provided by Huawei, had "exceeded the system capacity" to handle 20 million prepaid subscribers.

"In order to keep serving (MCI) with high quality, we provide this expansion proposal to support 40M subscribers," the proposal states on a page marked "HUAWEI Confidential."

The proposal makes clear that HP computer servers were an integral part of the "Hardware Installation Design" of the expansion project. Tables listing equipment for MCI facilities at a new site in Tehran and in the city of Shiraz repeatedly reference HP servers under the heading, "Minicomputer Model."

The documents seen by Reuters also include a portion of an equipment price list that carries Huawei's logo and are stamped "SKYCOM IRAN OFFICE." The pages list prices for HP servers, disk arrays and switches, including those that already are "existing" and others that need to be added. The total proposed project price came to 19.9 million euros, including a "one time special discount."

The proposed new HP equipment, which totaled 1.3 million euros, included one server, 20 disk arrays, 22 switches and software. The existing HP equipment included 22 servers, 8 disk arrays and 13 switches, with accompanying prices.

Asked who had provided the existing HP equipment to MCI, Vic Guyang, a Huawei spokesman, said it wasn't Huawei. "We would like to add that the existing hardware equipment belongs to the customer. Huawei does not have information on, or the authority to check the source of the customer's equipment."

Officials with MCI did not respond to requests for comment.

In a series of stories this year, Reuters has documented how China has become a backdoor for Iran to obtain embargoed U.S. computer equipment. In March and April, Reuters reported that China's ZTE Corp, a Huawei competitor, had sold or agreed to sell millions of dollars worth of U.S. computer gear, including HP equipment, to Telecommunication Co of Iran, the country's largest telecommunications firm, and a unit of the consortium that controls TCI.

The articles sparked investigations by the U.S. Commerce Department, the Justice Department and some of the U.S. tech companies. ZTE says it is cooperating with the federal probes.

TCI is the parent company of MCI.

(Additional reporting by Grace Li and Chyen Yee Lee in Hong Kong and Marcus George in Dubai; Edited by Simon Robinson)

Silicon Valley entrepreneur Krikorian quits Amazon board


SAN FRANCISCO (Reuters) - Silicon Valley entrepreneur and investor Blake Krikorian has quit the board of Amazon.com Inc about a year and a half after joining to take up an unspecified role at the buyer of a company he owned.

Krikorian, known for co-founding Sling Media in 2004, informed the rest of the board on Wednesday of his intention to resign, Amazon said in a Friday filing.

Spokesman Ty Rogers added that the serial entrepreneur, whose latest endeavor is home-automation startup id8 Group R2 Studios Inc, has sold a company and quit in order to take up a position at the acquirer. He did not name the company involved or the buyer.

The Wall Street Journal reported last week that Krikorian's year-old startup was in acquisition discussions with Amazon rivals Apple Inc, Google Inc and Microsoft Corp. It cited sources as saying the trio of tech powerhouses coveted R2 Studios' home-oriented technology as they expanded their own forays into living-room media entertainment.

R2 Studios recently launched a Google Android application to allow users to control home heating and lighting systems from their smartphone. Krikorian's Sling Media -- which was sold to EchoStar Communications in 2007 -- made the "Slingbox" for watching TV on computers.

Krikorian, known also for doing double duty as an angel investor, joined Amazon's board in September of last year, a move hailed as helping propel Amazon's own substantial efforts in online media. (Reporting By Edwin Chan; Editing by Gary Hill and Bob Burgdorfer)

Obama wants gun violence measures passed in 2013


WASHINGTON (AP) Recalling the shooting rampage that killed 20 first graders as the worst day of his presidency, President Barack Obama pledged to put his "full weight" behind legislation aimed at preventing gun violence.

Obama voiced skepticism about the National Rifle Association's proposal to put armed guards in schools following the Dec. 14 tragedy at Sandy Hook Elementary School in Newtown, Conn. The president made his comments Saturday in an interview that aired Sunday on NBC's "Meet the Press."

Instead, the president vowed to rally the American people around an agenda to limit gun violence, adding that he still supports increased background checks and bans on assault weapons and high-capacity bullet magazines. He left no doubt it will be one of his top priorities next year.

"It is not enough for us to say, 'This is too hard so we're not going to try,'" Obama said.

"I think there are a vast majority of responsible gun owners out there who recognize that we can't have a situation in which somebody with severe psychological problems is able to get the kind of high capacity weapons that this individual in Newtown obtained and gun down our kids," he added. "And, yes, it's going to be hard."

The president added that he's ready to meet with Republicans and Democrats, anyone with a stake in the issue.

The schoolhouse shootings, coming as families prepared for the holidays, have elevated the issue of gun violence to the forefront of public attention. Six adult staff members were also killed at the elementary school. Shooter Adam Lanza committed suicide, apparently as police closed in. Earlier, he had killed his mother at the home they shared.

The tragedy immediately prompted calls for greater gun controls. But the NRA is strongly resisting those efforts, arguing instead that schools should have armed guards for protection. Some gun enthusiasts have rushed to buy semiautomatic rifles of the type used by Lanza, fearing sales may soon be restricted.

Obama seemed unimpressed by the NRA proposal. "I am skeptical that the only answer is putting more guns in schools," he said. "And I think the vast majority of the American people are skeptical that that somehow is going to solve our problem."

The president said he intends to press the issue with the public.

"The question then becomes whether we are actually shook up enough by what happened here that it does not just become another one of these routine episodes where it gets a lot of attention for a couple of weeks and then it drifts away," Obama said. "It certainly won't feel like that to me. This is something that - you know, that was the worst day of my presidency. And it's not something that I want to see repeated."

Separately, a member of the president's cabinet said Sunday that rural America may be ready to join a national conversation about gun control. Agriculture Secretary Tom Vilsack said the debate has to start with respect for the Second Amendment right to bear arms and recognition that hunting is a way of life for millions of Americans.

But Vilsack said Newtown has changed the way people see the issue. "I really believe that this is a different circumstance and a different situation," Vilsack said on CNN.

Vilsack said he thinks it's possible for Americans to come together. "It's potentially a unifying conversation," he said. "The problem is that these conversations are always couched in the terms of dividing us. This could be a unifying conversation, and Lord knows we need to be unified."

Besides passing gun violence legislation, Obama also listed deficit reduction and immigration as top priorities for 2013. A big deficit reduction deal with Republicans proved elusive this month, and Obama is now hoping Senate Democratic and Republican leaders salvage a scaled-back plan that avoids tax increases for virtually all Americans.

In addition, he issued a defense of former Republican Sen. Chuck Hagel of Nebraska, who has been mentioned as one of the leading candidates to replace Leon Panetta as defense secretary.

Hagel supported the 2002 resolution approving U.S. military action in Iraq, but later became a critic of the war. He has been denounced by some conservatives for not being a strong enough ally of Israel. Also, many liberals and gay activists have banded against him for comments he made in 1998 about an openly gay nominee for an ambassadorship.

Obama, who briefly served with Hagel in the Senate, stressed that he had yet to make a decision but called Hagel a "patriot."

Hagel "served this country with valor in Vietnam," the president said. "And (he) is somebody who's currently serving on my intelligence advisory board and doing an outstanding job."

Obama noted that Hagel had apologized for his 14-year-old remark on gays.

If cut, fiscal deal will pale against expectations


WASHINGTON (AP) -- The top Senate negotiators on the effort to prevent the government from going over the "fiscal cliff" offered a pessimistic assessment Sunday barely 24 hours before a deadline to avert tax hikes on virtually every worker.

Senate Republican leader Mitch McConnell said he's yet to receive a response to an offer he made on Saturday evening to Majority Leader Harry Reid, D-Nev., the top Democratic negotiator. The Kentucky Republican said he's reached out to Vice President Joe Biden in hopes of breaking the impasse.

Despite indications of progress in the negotiations, Democrats said Republicans were proposing to slow future cost of living increases for Social Security recipients as part of a compromise to avoid the cliff. Democrats rejected the idea. Republicans declined to confirm the assertion and one GOP official disputed it but noted that President Barack Obama said in a television interview broadcast earlier in the day he had advanced such a proposal in earlier talks with Republicans.

"I'm concerned with the lack of urgency here. There's far too much at stake," McConnell said. "There is no single issue that remains an impossible sticking point the sticking point appears to be a willingness, an interest or courage to close the deal."

Reid said he has been trying to come up with a counteroffer but has been unable to do so. He said he's been in frequent contact with Obama, who in the interview blamed Republicans for putting the nation's shaky economy at risk.

The pessimistic turn came as the House and Senate returned to the Capitol for a rare Sunday session. The fate of the negotiations remained in doubt, two days before the beginning of a new year that would trigger across-the-board tax increases and spending cuts that leaders in both parties have said they want to avoid.

Reid said he remains "cautiously optimistic" but reiterated that any agreement would not include the less generous inflation adjustment for Social Security.

"We have been talking to the Republicans ever since the election was over," Obama said in the interview on NBC's "Meet the Press" that aired Sunday. "They have had trouble saying yes to a number of repeated offers."

McConnell and Reid were hoping for a deal that would prevent higher taxes for most Americans while letting rates rise at higher income levels, although the precise point at which that would occur was a major sticking point.

Also at issue were the estate tax, taxes on investment income and dividends, continued benefits for the long-term unemployed and a pending 27.5 percent cut in payment levels for doctors who treat Medicare patients.

Obama, in the NBC interview, said that while he had been "modestly optimistic" late last week, "we don't yet see an agreement."

As the Senate opened a rare Sunday session, Chaplain Barry Black offered a timely prayer for lawmakers.

"Lord show them the right thing to do and give them the courage to do it," Black said. "Look with favor on our nation and save us from self-inflicted wounds."

Senate negotiators were haggling over what threshold of income to set as the demarcation between current tax rates and higher tax rates. They were negotiating over estate limits and tax levels, how to extend unemployment benefits, how to prevent cuts in Medicare payments to doctors and how to keep a minimum income tax payment designed for the rich from hitting about 28 million middle class taxpayers.

Obama pressed lawmakers to start where both sides say they agree sparing middle-class families from looming tax hikes.

"If we can get that done, that takes a big bite out of the fiscal cliff. It avoids the worst outcomes. And we're then going to have some tough negotiations in terms of how we continue to reduce the deficit, grow the economy, create jobs," Obama said in the NBC interview.

Gone, however, is the talk of a grand deal that would tackle broad spending and revenue demands and set the nation on a course to lower deficits. Obama and Republican House Speaker John Boehner were once a couple hundred billion dollars apart of a deal that would have reduced the deficit by more than $2 trillion over ten years.

Republicans have complained that Obama has demanded too much in tax revenue and hasn't proposed sufficient cuts or savings in the nation's massive health care programs.

Obama upped the pressure on Republicans to negotiate a fiscal deal, arguing that GOP leaders have rejected his past attempts to strike a bigger and more comprehensive bargain.

"The offers that I've made to them have been so fair that a lot of Democrats get mad at me," Obama said.

Boehner disagreed, saying Sunday that the president had been unwilling to agree to anything "that would require him to stand up to his own party."

Don Stewart, a spokesman for McConnell, said Sunday: "While the president was taping those discordant remarks yesterday, Sen. McConnell was in the office working to bring Republicans and Democrats together on a solution."

The trimmed ambitions of today are a far cry from the upbeat bipartisan rhetoric of just six weeks ago, when the leadership of Congress went to the White House to set the stage for negotiations to come.

"I outlined a framework that deals with reforming our tax code and reforming our spending," Boehner said as the leaders gathered on the White House driveway on Nov. 16.

"We understand that it has to be about cuts, it has to be about revenue, it has to be about growth, it has to be about the future," House Democratic leader Nancy Pelosi said at the time. "I feel confident that a solution may be in sight."

Sen. Dianne Feinstein, D-Calif., said the 2.1 million Americans whose extended unemployment benefits ran out on Saturday are already feeling the pain of Congress' inaction.

"From this point on, it's lose-lose. My big worry is a contraction of the economy, the loss of jobs, which could be well over 2 million in addition to the people already on unemployment. I think contraction of the economy would be just terrible for this nation. I think we need a deal, we should do a deal," Feinstein said on "Fox News Sunday."

But the deal was not meant to settle other outstanding issues, including more than $1 trillion in cuts over 10 years, divided equally between the Pentagon and other government spending. The deal also would not address an extension of the nation's borrowing limit, which the government is on track to reach any day but which the Treasury can put off through accounting measures for about two months.

That means Obama and the Congress are already on a new collision path. Republicans say they intend to use the debt ceiling as leverage to extract more spending cuts from the president. Obama has been adamant that unlike 2011, when the country came close to defaulting on its debts, he will not yield to those Republican demands.

Lawmakers have until the new Congress convenes to pass any compromise, and even the calendar mattered. Democrats said they had been told House Republicans might reject a deal until after Jan. 1, to avoid a vote to raise taxes before they had technically gone up, and then vote to cut taxes after they had risen.

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Associated Press writers David Espo, Julie Pace, Jim Kuhnhenn and Michele Salcedo contributed to this report.

Obama touts Hagel, says no decision on defense secretary job


WASHINGTON (Reuters) - President Barack Obama offered strong support for former Republican Senator Chuck Hagel as the potential next U.S. defense secretary but said in remarks aired on Sunday that he had not yet decided on a nominee for the Pentagon post.

Hagel is considered a leading candidate to replace outgoing Secretary of Defense Leon Panetta, but the former Nebraska lawmaker has come under criticism for his record on Israel and for a comment that being gay was an inhibiting factor for being an ambassador.

"I've served with Chuck Hagel. I know him. He is a patriot. He is somebody who has done extraordinary work both in the United States Senate, somebody who served this country with valor in Vietnam," Obama told NBC's "Meet the Press" in an interview taped on Saturday and broadcast on Sunday.

Any nomination for defense secretary must be approved by the Senate where some lawmakers have voiced criticism about their former colleague.

"I think a lot of Republicans and Democrats are very concerned about Chuck Hagel's positions on Iran sanctions, his views toward Israel, Hamas and Hezbollah, and that there is wide and deep concern about his policies. All of us like him as a person," Republican Senator Lindsey Graham said.

"There would be very little Republican support for his nomination, at the end of the day, there will be very few votes," Graham said on Fox News Sunday.

Obama said he had seen nothing that would disqualify Hagel.

The president said Hagel had apologized for his comments related to homosexuality, referred to by NBC's David Gregory in the interview.

"With respect to the particular comment that you quoted, he apologized for it," Obama said.

"And I think it's a testimony to what has been a positive change over the last decade in terms of people's attitudes about gays and lesbians serving our country. And that's something that I'm very proud to have led," he said.

Obama came out in favor or gay marriage in the middle of his re-election bid this year. Earlier in his term he presided over the end of the "don't ask, don't tell" policy that prohibited gay men and women from serving openly in the U.S. military.

Hagel, who left the Senate in 2008, has faced questions about his record on Israel.

Some of Israel's leading U.S. supporters contend that Hagel at times opposed Israel's interests, voting several times against U.S. sanctions on Iran, and made disparaging remarks about the influence of what he called a "Jewish lobby" in Washington.

Obama, who has strained relations with Israeli Prime Minister Benjamin Netanyahu, has faced questions of his own from the American Jewish community about his approach to the U.S. ally.

Obama said Hagel was doing an "outstanding job" serving on an intelligence advisory board and gave no indication on when he would make his final decision about the defense chief job.

The president has already backed down once from a contentious nomination, choosing Democratic Senator John Kerry to replace Hillary Clinton as secretary of state rather than going with his presumed first choice, U.S. Ambassador to the United Nations Susan Rice, whom many Republicans opposed after she made controversial remarks about the September 11 attacks on a U.S. mission in Benghazi, Libya, that killed four Americans.

(Additional reporting by Tabassum Zakaria; Editing by Sandra Maler)

EPA faces legal battles, might take easy confirmation road


WASHINGTON (Reuters) - Regardless of who takes the reins, the U.S. Environmental Protection Agency will likely face continued legal battles in President Barack Obama's second term as it tries to finalize pollution rules for power plants, analysts said.

EPA Administrator Lisa Jackson, who spearheaded the Obama administration's regulation of carbon emissions, said on Thursday she will step down after almost four years.

Her tenure was marked by opposition from industry groups and Republican lawmakers to the EPA's first-ever crackdown on carbon emissions, as well as other anti-pollution measures.

Analysts said whoever succeeds Jackson will probably face a spate of lawsuits to challenge rules that the EPA will finalize governing power plants, industrial sources and oil and gas production.

"This is shaping up to be four years of litigation," said Christopher Guith, vice president for policy at the U.S. Chamber of Commerce's Energy Institute.

Given the partisan divide, Guith said, legislators would struggle to draft laws that could serve as alternatives to the EPA's pending suite of carbon and air regulation.

"As we look to an even more divided Congress, the action will be in the federal courts," he said.

The U.S. Court of Appeals for the District of Columbia circuit, which hears most challenges to federal environmental rules, is likely to be busy as industry groups and states bring their cases against the EPA's rules after they are finalized.

The court sided with the agency in most of the recent challenges, most notably upholding its decision to use the Clean Air Act to regulate carbon dioxide emissions.

David Doniger, policy director of the National Resources Defense Council's Climate and Clean Air Program, said this could bolster the EPA as it tackles rules that may be more controversial than those rolled out under Jackson.

"The agency has a very good batting record on the clean air side. Carbon and climate (regulations) have come through completely unscathed," he said.

CARETAKER ADMINISTRATOR?

After the EPA was a political lightning rod during the first Obama administration, the president is likely to seek out a safe, possibly internal choice as Jackson's successor, or to avoid the confirmation process altogether.

"There are just so many arrows pointed at this agency," said Susan Tierney, managing principal and energy and environment specialist at Boston-based Analysis Group

Bob Perciasepe, deputy EPA administrator, will take over on an interim basis and could continue in that role indefinitely.

He previously worked at the EPA during the Clinton administration, specializing in water and air quality. Before rejoining the agency, Perciasepe was a top official at the National Audubon Society, a major conservation group.

Tierney said she expects the EPA to stay the course on its current agenda, especially as the agency faces some court-ordered deadlines to finalize rules, such as for coal ash, industrial waste from coal-fired plants and ozone standards.

PRIORITY ON CLIMATE CHANGE?

Some environmentalists have criticized Obama for being too timid on climate issues during his first term. But in his acceptance speech on election night in November the president gave a nod to climate change, raising hopes for more activism.

The White House may lean on the EPA to tackle one of the largest sources of U.S. greenhouse gas emissions, the current fleet of power plants, said Jeremy Symons, senior vice president at the National Wildlife Federation.

"The president has made clear that climate change is one of his top three priorities for the second term, so that means EPA needs to do its job," Symons said.

This, he said, means the agency needs to finalize the rules for new power plants and the standards for limiting carbon emissions from existing power plants.

The NRDC's Doniger said once the EPA meets an April 2013 legal deadline to finalize the greenhouse gas rules for new power plants, it will then have to address standards for existing plants.

The EPA has to start promptly in the beginning of the second term, said Doniger, because the rulemaking process is "a multistep process that will take time."

The controversial task will almost certainly trigger lawsuits because the rules will target a large number of domestic power plants and could jeopardize electric reliability.

"It's high stakes litigation when you are talking about bringing 40 percent of generation under regulations. That's disastrous," the Chamber's Guith said.

Guith said that while the EPA does have the authority to regulate carbon dioxide using the Clean Air Act, its rules are too difficult for industry - forcing the litigation.

"This EPA has been so aggressive in pushing the envelope by way of the compliance timeline that it has made itself more vulnerable to lawsuits," he said.

The EPA may also face legal challenges from environmental groups and certain states. The NRDC, the Environmental Defense Fund and the Sierra Club joined a group of nine states led by New York that threatened to sue the EPA last year to propose air pollution standards for oil and gas drilling.

They said that the drilling, transportation and distribution resulted in a significant release of methane, a potent greenhouse gas that is not regulated by federal rules.

Doniger said the group is trying to negotiate a timeline with the EPA to set a rule but could sue the agency if it doesn't agree a schedule by February.

(Additional reporting by Ayesha Rascoe; Editing by Gary Hill)

Suspects in India rape case charged with murder


NEW DELHI (AP) Indian police have charged six men with murder, adding to accusations that they beat and gang-raped a woman on a New Delhi bus two weeks ago in a case that shocked the country.

The murder charges were laid Saturday, hours after the woman died in a Singapore hospital, where she had been flown for treatment.

New Delhi police spokesman Rajan Bhagat said the six face the death penalty if convicted, in a case that has triggered protests across India for greater protection for women from sexual violence, and raised questions about lax attitudes by police toward sexual crimes.

The tragedy has forced India to confront the reality that sexually assaulted women are often blamed for the crime, forcing them to keep quiet and discouraging them from reporting it to authorities for fear of exposing their families to ridicule. Police often refuse to accept complaints from those who are courageous enough to report the rapes, and the rare prosecutions that reach courts drag on for years.

Indian Prime Minister Manmohan Singh said he was aware of the emotions the attack has stirred, adding it was up to all Indians to ensure that the young woman's death will not have been in vain.

The victim, who has not been identified, "passed away peacefully" early Saturday at Mount Elizabeth hospital in Singapore with her family and officials of the Indian Embassy by her side, Dr. Kevin Loh, the chief executive of the hospital, said in a statement.

The victim's body was cremated Sunday in New Delhi soon after its arrival from Singapore on board a special Air-India flight, amid an outpouring of grief by people across the country.

Singh and Sonia Gandhi, head of the ruling Congress party, were at the airport to receive the body and meet family members of the victim who had also arrived on the special flight.

After 10 days at a hospital in New Delhi, the Indian capital, the victim was brought Thursday to Mount Elizabeth, which specializes in multi-organ transplants. Loh said the woman had been in extremely critical condition since Thursday, and by late Friday her condition had taken a turn for the worse, with her vital signs deteriorating.

"Despite all efforts by a team of eight specialists in Mount Elizabeth hospital to keep her stable, her condition continued to deteriorate over these two days," Loh said.

The woman and a male friend, who also has not been identified, were on a bus in New Delhi after watching a film on the evening of Dec. 16 when they were attacked by six men who raped her. The men beat the couple and inserted an iron rod into the woman's body, resulting in severe organ damage. Both were then stripped and thrown off the bus, according to police.

As news of the victim's death reached New Delhi on Saturday, hundreds of policemen sealed off the high-security India Gate area, where the seat of India's government is located, in anticipation of more protests.

The area is home to the president's palace, the prime minister's office and key defense, external affairs and home ministries, and has been the scene of battles between protesters and police for days after the attack.

Police were allowing people to assemble at the Jantar Mantar and Ramlila grounds, the main areas allotted for protests in New Delhi, Bhagat said.

Mourners gathered at Jantar Mantar to express their grief and demand stronger protection for women and the death penalty for rape, which is now punishable by a maximum of life imprisonment. Women face daily harassment across India, ranging from catcalls on the streets, groping and touching in public transport to rape.

They put a wreath studded with white flowers on the road, lit a candle and sat around it in a silent tribute to the young woman. Members of a theater group nearby played small tambourines and sang songs urging Indian society to wake up and end discrimination against women.

Dipali, a working woman who uses one name, said the rape victim deserved justice. "I hope it never happens again to any girl," she said.

Dozens of students of Jawaharlal Nehru University in New Delhi marched silently to the bus stop from where the rape victim and her friend had boarded the bus on Dec. 16. They carried placards reading "She is not with us but her story must awaken us."

Sonia Gandhi, the governing Congress party chief, assured the protesters in a statement that the rape victim's death "deepens our determination to battle the pervasive, the shameful social attitudes and mindset that allow men to rape and molest women and girls with such an impunity."

The protesters heckled Sheila Dikshit, the top elected leader of New Delhi state, when she came to express her sympathy with them and forced her to leave the protest venue. They blamed her for the deteriorating law and order situation in the capital.

Meenakshi Ganguly, South Asia director of Human Rights Watch, said the woman's death was a sobering reminder of the widespread sexual violence in India.

"The outrage now should lead to law reform that criminalizes all forms of sexual assault, strengthens mechanisms for implementation and accountability, so that the victims are not blamed and humiliated," Ganguly said.

Prime Minister Singh said he understood the angry reaction to the attack and that he hoped all Indians would work together to make appropriate changes.

"These are perfectly understandable reactions from a young India and an India that genuinely desires change," Singh said in a statement. "It would be a true homage to her memory if we are able to channel these emotions and energies into a constructive course of action."

Mamta Sharma, head of the state-run National Commission for Women, said the "time has come for strict laws" to stop violence against women. "The society has to change its mindset to end crimes against women," she said.

Indian attitudes toward rape are so entrenched that even politicians and opinion makers have often suggested that women should not go out at night or wear clothes that might be seen as provocative.

Separately, authorities in Punjab state took action Thursday when an 18-year-old woman killed herself by drinking poison a month after she told police she was gang-raped.

State authorities suspended one police officer and fired two others on accusations they delayed investigating and taking action in the case. The three accused in the rape were arrested only on Thursday night, a month after the crime was reported.

"This is a very sensitive crime, I have taken it very seriously," said Paramjit Singh Gill, a top police officer in the city of Patiala.

The Press Trust of India reported that the woman was raped Nov. 13 and reported the attack to police Nov. 27. But police harassed the girl, asked her embarrassing questions and took no action against the accused, PTI reported, citing police sources.

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Associated Press writers Heather Tan and Faris Mokhtar in Singapore and Ravi Nessman in New Delhi contributed to this report.

Katie Holmes' Broadway play 'Dead Accounts' closes


NEW YORK (AP) Katie Holmes' return to Broadway will be much shorter than she would have liked.

The former Mrs. Cruise's play "Dead Accounts" will close within a week of the new year. Producers said Thursday that Theresa Rebeck's drama will close on Jan. 6 after 27 previews and 44 performances.

The show, which opened to poor reviews on Nov. 29, stars Norbert Leo Butz as Holmes' onstage brother who returns to his Midwest home with a secret. Rebeck created the first season of NBC's "Smash" and several well-received plays including "Seminar" and "Mauritius."

Holmes, who became a star in the teen soap opera "Dawson's Creek," made her Broadway debut in the 2008 production of "All My Sons." She was married to Tom Cruise from 2006 until this year.

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Online: http://www.deadaccountsonbroadway.com

Whale of a tale: Pakistani fishmonger now pop star


ISLAMABAD (AP) Muhammad Shahid Nazir is a testament to the age-old adage that if you give a man a fish, he will eat for a day, but if you teach a man to sing about fish, his song will shoot up the British pop chart.

The 31-year-old Pakistani fishmonger catapulted to fame in recent weeks in the unlikeliest of circumstances: while hawking frozen snapper and mackerel for one British pound ($1.61) at Queens Market in London.

Not comfortable with shouting about his merchandise to attract customers, as many vendors do, he came up with a simple ditty that someone caught on video and posted on YouTube earlier this year. It became a viral sensation and has been viewed over 7 million times.

"One Pound Fish changed my whole life," said Nazir, who returned to Pakistan on Thursday to a hero's welcome and has been inundated with requests to perform and do advertisements. "I am so happy now."

To describe the song as catchy would be a gross understatement. It drills deep into your brain and sits like a lyrical jack-in-the box that goes off every few minutes, causing one to break into song involuntarily to the amusement, or perhaps growing despair, of those nearby.

"Come on ladies, come on ladies, one pound fish! Have a, have a look, one pound fish!" sings Nazir, as he points to his wares behind him. "Very, very good, one pound fish! Very, very cheap, one pound fish!"

In an era in which the Internet seems to bestow almost everyone with 15 minutes of fame, Nazir's YouTube video could have been the end of the story. But Warner Music offered Nazir a deal to record a techno-infused version of "One Pound Fish," he said. In a Bollywood-style video, he performs in a snazzy suit alongside scantily-clad dancers to a South Asian-influenced pop beat.

The music video has been viewed nearly 9 million times since it was posted on YouTube about three weeks ago. As the song gained momentum, people began talking about it as a serious contender for the fabled No. 1 Christmas single in the United Kingdom the song that tops the chart in the week the holiday falls. Past chart-toppers include The Beatles' "I Want to Hold Your Hand" and Whitney Houston's "I Will Always Love You."

In the end, "One Pound Fish" made it to No. 29 on the top-40 chart. It was beaten by another Internet sensation, PSY's "Gangnam Style," which clocked in at No. 6. The No. 1 spot was clinched by a version of the Hollies' "He Ain't Heavy, He's My Brother" by The Justice Collective, a group of star musicians who recorded the charity single for victims of a stampede at a soccer stadium in 1989 that killed 96 people.

Nazir definitely doesn't view missing out on the No. 1 Christmas single as a setback. He has returned to his home country to get a visa for France for the release of his hit song there and also has plans to take "One Pound Fish" to the United States, where he hopes it will make a big splash.

It has been quite a ride. He grew up in the little-known town of Pattoki near the eastern city of Lahore. His father owned a transport company, but his passion was always music, and he spent his youth singing both religious songs and pop hits by stars like Michael Jackson.

He traveled to Britain to study but eventually got a work permit and started working as a fishmonger in London nine months ago, he said. He now wants to pursue a career in music, but the fish stall in London will always hold a special place in his heart.

"I can't forget England, Queens Market, my fish stall because that place changed my whole life," said Nazir.

Week's second storm for some expected to be milder


NEW YORK (AP) Snow from a mild but widespread winter storm began falling Saturday over most of the Northeast and the upper Ohio River Valley, the second in less than a week for the regions.

Forecasters expected the heaviest snowfall of up to 8 inches in southern New England, including Boston and Providence, R.I., by late Saturday. Farther south, New York City and Philadelphia saw a mix of rain and snowfall as the storm moved in from the west. A few inches of snow were forecast.

"Expect those accumulations to kind of work their way northeastward through much of New York state and much of New England," said meteorologist Brian Hurley of the National Weather Service.

About 20 vehicles piled up in a storm-related chain-reaction crash on Interstate 93 in New Hampton, N.H., police said, and five people were injured.

Drivers throughout the regions were warned to be cautious. Officials lowered the speed limit to 45 mph on much of the Pennsylvania Turnpike, about 300 miles from the Ohio state line to east-central Pennsylvania.

Flights at Philadelphia's airport were delayed about an hour, mostly arrivals, spokeswoman Stacy Jackson said.

Parts of southern Indiana saw 6-8 inches from the storm, some in areas that had received more than a foot from a blizzard earlier in the week.

That blizzard was part of a storm system that dumped more than a foot of snow in some places and has been blamed for at least 16 deaths. It also spawned more than a dozen tornadoes in Alabama, the National Weather Service said.

But Saturday's snow "shouldn't be as heavy with the previous storm," weather service meteorologist Marty Rausch said.