Wednesday, July 31, 2013

Reuters: Politics: House passes Iran sanctions bill to slash oil exports

Reuters: Politics
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House passes Iran sanctions bill to slash oil exports
Aug 1st 2013, 01:14

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran. A general view of an oil dock is seen from a ship at the port of Kalantari in the city of Chabahar, 300km (186 miles) east of the Strait of Hormuz January 17, 2012. REUTERS/Raheb Homavandi

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran. A general view of an oil dock is seen from a ship at the port of Kalantari in the city of Chabahar, 300km (186 miles) east of the Strait of Hormuz January 17, 2012.

Credit: Reuters/Raheb Homavandi

By Timothy Gardner

WASHINGTON | Wed Jul 31, 2013 9:14pm EDT

WASHINGTON (Reuters) - The House of Representatives easily passed a bill on Wednesday to tighten sanctions on Iran, showing a strong message to Tehran over its disputed nuclear program days before President-elect Hassan Rouhani is sworn in.

The vote also highlighted a growing divide between Congress and the Obama administration on Iran policy ahead of international talks on the nuclear program in coming months. Iran insists the nuclear program is purely for civilian purposes.

The bill, which passed 400 to 20, would cut Iran's oil exports by another 1 million barrels per day over a year, in an attempt to reduce the flow of funds to the nuclear program. It is the first sanctions bill to put a number on exactly how much Iran's oil exports would be cut.

Previous U.S. and EU sanctions have reduced Iran's oil exports by more than half. The United States has worked with Iran's top oil consumers including China, Japan and South Korea to push them toward alternative suppliers of crude.

Oil prices have remained relatively steady, which has allowed the efforts to continue, but some analysts say further sanctions risk pushing up prices and damaging the economies of U.S. allies.

The bill still has to be passed in the Senate and signed by President Barack Obama before becoming law. The Senate Banking Committee is expected to introduce a similar measure in September, though it is uncertain whether the language to cut exports by 1 million barrels a day will survive.

Critics of the bill said it shows an aggressive signal to Iran that last month voted in Rouhani, a cleric many see as more moderate. He will be sworn in on Sunday.

NO HIGHER PRIORITY

Rep. Ed Royce, a California Republican and Chairman of the House Foreign Affairs Committee who introduced the bill with Rep. Eliot Engel, a New York Democrat, said the United States has no higher national security priority than preventing a nuclear-armed Iran.

Royce said the Supreme Leader Ayatollah Ali Khamenei's drive to develop a nuclear arsenal was evident. "New president or not, I am convinced that Iran's Supreme Leader intends to continue on this path," he said.

The vote showed a growing disagreement between the White House and Congress on Iran policy. A senior administration official said on Wednesday the White House is not opposed to new sanctions in principle, but wants to give Rouhani a chance.

The Treasury Department last week partially eased sanctions on Iran by expanding a list of medical devices that can be exported there without special permission.

One of the 20 lawmakers to vote against the bill, Jim McDermott, a Washington-state Democrat, said shortly before the vote that the rush to sanction Iran before Rouhani takes office could hurt efforts to deflate the nuclear issue.

"It's a dangerous sign to send and it limits our ability to find a diplomatic solution to nuclear arms in Iran," McDermott said.

A supporter of harsher sanctions disagreed. Ayatollah Ali Khamenei "doesn't see our flexibility and good faith efforts as a sign of good intentions, he sees it as a sign of weakness," said Mark Dubowitz, the head of Foundation of Defense of Democracies, an advocate of sanctions. "If anything, it's only going to be massively intensified sanctions that get him to blink."

But Trita Parsi, the president of the National Iranian American council, said the House action undermines the U.S. strategy which has long been one of good cop - bad cop. The White House has long taken a softer stance toward Iran's nuclear program, and Congress has taken a tougher one. But now there are signs that the good cop cannot control the bad cop, he said.

"The impression on the Iranian side is not that its good cop bad cop, but complete chaos and mayhem," Parsi said.

The bill also further denies Iran governments access to foreign currency reserves, and targets Iranian efforts to circumvent international sanctions against its shipping business.

(Reporting by Timothy Gardner, additional reporting by Warren Strobel; Editing by Philip Barbara)

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Reuters: Politics: Pentagon review protects weapons for now, but uncertainty abounds

Reuters: Politics
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Pentagon review protects weapons for now, but uncertainty abounds
Aug 1st 2013, 01:31

U.S. Defense Secretary Chuck Hagel listens to a question during a briefing on the Defense Department's FY2014 budget at the Pentagon in Washington April 10, 2013. REUTERS/Kevin Lamarque

U.S. Defense Secretary Chuck Hagel listens to a question during a briefing on the Defense Department's FY2014 budget at the Pentagon in Washington April 10, 2013.

Credit: Reuters/Kevin Lamarque

By Andrea Shalal-Esa

WASHINGTON | Wed Jul 31, 2013 9:31pm EDT

WASHINGTON (Reuters) - Defense Secretary Chuck Hagel's rollout Wednesday of a long-awaited strategic budget review left big weapons programs unscathed for now, focusing more on cuts to Pentagon overhead, compensation packages and troop levels.

But the review did not resolve the budget uncertainties that have plagued U.S. weapons makers for nearly two years, and even cuts in the overall size of the military will result in fewer new equipment purchases in years to come, analysts said.

Hagel told reporters that coming up with $500 billion in budget cuts required by law over the next decade under the sequestration process - on top of $487 billion in cuts already begun - required tough trade-offs between the size of the military and weapons programs.

He said those decisions would be made in coming months as the Pentagon prepared its budget plan for fiscal 2015, with President Barack Obama having the final say.

Top U.S. weapons makers like Lockheed Martin Corp, Boeing Co, Raytheon Co and others have been anxiously awaiting details of the Pentagon's four-month Strategic Choices and Management Review, worried that specific weapons programs might be scrapped to save money.

The companies posted higher earnings for the second quarter as a result of cost-cutting, but many forecast weaker revenues in 2014 and said backlogs were easing as mounting budget pressures began to take their toll.

Hagel warned that choosing size over capabilities would trigger a "decade-long modernization holiday" that could undermine the U.S. military's technological edge and could undermine the defense industrial base.

Preserving the military's ability to project power would entail less onerous cuts in ground forces, ships and aircraft, but would lead to cancellation or truncation of many weapons programs and efforts to beef up U.S. cyber defenses, Hagel said.

If the military chose high-end capabilities over size, it would protect certain programs, including Lockheed's F-35 Joint Strike Fighter, a new bomber and submarine cruise-missile upgrades, as well as cyber operations and special operations forces, Hagel said.

The result would be a smaller, technologically dominant force, that would be able to "go fewer places and do fewer things, especially if crises occurred at the same time in different regions of the world," he told reporters.

'NOT AS BAD AS IT MIGHT HAVE BEEN'

Byron Callan, analyst with Capital Alpha Partners, said Hagel appeared to lean toward the latter option, partly because of the damage that cutting modernization programs would do to the country's defense industrial base.

But even cutting the size of the military could undermine current plans for buying 2,443 Lockheed F-35s, he said.

"The capability option is a positive for slivers of industry, but force structure cuts will reduce the size of the F-35 buy and impact a wide range of other programs," he said in a note to investors.

Todd Harrison, defense analyst with the Center for Strategic and Budgetary Assessments, told Reuters that cutting size in favor of high-end capabilities was more in line with the department's current strategy, and better suited to responding to increasing threats around the world.

"If you focus on capabilities over capacity, that means you can develop the future capabilities that you need to operate in a more contested threat environment," he said.

Loren Thompson, chief operating officer of the Lexington Institute think tank, said the Pentagon did not attack weapons programs as hard during this review because it had already canceled numerous arms programs, including the Army's Future Combat System, or FCS, and an airborne laser, in recent years.

"The Obama administration spent the last four years killing unneeded weapons programs, so now it is left with the programs that are really essential," he said.

He said weapons makers still faced challenges, even if the administration opted to shrink the size of the military since that would result in fewer ships, aircraft and other equipment that needed to be maintained and upgraded.

"This news is not as bad as it might have been. However, if you're going to cut the size of the force and have fewer aircraft carriers or fewer bombers, then obviously companies are not going to be booking as much revenue," he said.

(Reporting by Andrea Shalal-Esa; Editing by Peter Cooney)

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Reuters: Politics: U.S. firearms bureau director confirmed, fulfilling Obama demand

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U.S. firearms bureau director confirmed, fulfilling Obama demand
Aug 1st 2013, 00:34

By David Ingram

WASHINGTON | Wed Jul 31, 2013 8:34pm EDT

WASHINGTON (Reuters) - The Senate on Wednesday confirmed a director for the federal agency that regulates firearms, fulfilling one of the demands President Barack Obama made after the Newtown, Connecticut, school shooting.

After a delay while lawmakers awaited the return of a colleague who was flying in from North Dakota, senators voted 53-42 to install prosecutor Todd Jones as director of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The troubled bureau, which gun-rights activists often criticize as too aggressive, has experienced stagnant funding and had lacked a permanent director since 2006.

In January, a month after a gunman opened fire at Newtown's Sandy Hook Elementary School, killing 20 children and six adults, Obama asked the Senate to confirm an ATF director as part of his plan to prevent future mass killings.

Many of Obama's other demands, such as an expansion of federal background checks, have failed to win the necessary support in Congress.

For the firearms bureau, Senate Democrats echoed Obama's frustrations.

"It is time for the Senate to do its job and confirm an ATF director for the first time in seven years," Senator Amy Klobuchar, a Minnesota Democrat, said on Wednesday.

Jones has run the ATF as part-time acting director since September 2011, while remaining the U.S. attorney for Minnesota, the state's chief federal prosecutor.

A former Marine, he joined the Justice Department after Obama took office in 2009 and also served as a federal prosecutor in the 1990s.

Removing some potential opposition to Jones, the National Rifle Association, the largest U.S. gun-rights lobbying group, said it was neutral on him.

Senator Charles Grassley, an Iowa Republican, urged a delay in the vote, saying Jones had made comments discouraging to ATF whistle-blowers who might report waste or abuse.

Votes typically last 15 minutes, but Democrats who control the Senate required much longer to confirm Jones. To reach a 60-vote threshold to end debate, they needed Democratic Senator Heidi Heitkamp of North Dakota to fly to Washington.

While Heitkamp was absent from the Senate floor, lawmakers kept up an unusual, five-hour procedural vote needed to clear the way for confirmation. That delay matched the length of a 2009 vote on Obama's economic stimulus package.

The ATF remains an object of intense criticism because of Operation Fast and Furious, a botched investigation of gun trafficking along the U.S.-Mexico border in Arizona.

Beginning in 2009, ATF agents in the operation focused on building cases against the leaders of a trafficking ring, and in the process did not pursue low-level buyers of about 2,000 potentially illegal firearms.

The operation was brought to light when a U.S. Border Patrol agent, Brian Terry, was killed in December 2010. Two guns connected with the case were found at the scene of the shootout where he died, although investigators could not determine if the guns were used to kill Terry.

(Reporting by David Ingram; Additional reporting by Richard Cowan and Patrick Rucker; Editing by Peter Cooney)

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Reuters: Politics: Pentagon warns of tough trade-offs in face of looming cuts

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Pentagon warns of tough trade-offs in face of looming cuts
Aug 1st 2013, 00:47

U.S. Defense Secretary Chuck Hagel attends the opening ceremony of the Pentagon's permanent Korean War exhibition near Washington June 18, 2013. REUTERS/Jason Reed

U.S. Defense Secretary Chuck Hagel attends the opening ceremony of the Pentagon's permanent Korean War exhibition near Washington June 18, 2013.

Credit: Reuters/Jason Reed

By David Alexander and Andrea Shalal-Esa

WASHINGTON | Wed Jul 31, 2013 8:47pm EDT

WASHINGTON (Reuters) - Defense Secretary Chuck Hagel on Wednesday pledged $40 billion in new Pentagon spending reductions over the next decade, but warned that additional cuts required by law posed stark choices that could bend or break the president's defense strategy.

Hagel, unveiling his four-month Strategic Choices and Management Review, said the Pentagon would cut $40 billion in overhead from its agencies and headquarters units over the next decade.

He said the review concluded the Army could be cut further, reductions that would trim it to its smallest size since the start of World War Two. Hagel said the Air Force could be slimmed further as well, and the Pentagon would work on compensation reforms to save $50 billion.

But the defense secretary said eliminating duplication and waste could save nowhere near enough to reach the budget cuts required by law - $500 billion in across-the-board reductions over a decade on top of the $487 billion already begun.

The deeper reductions, under a mechanism known as sequestration, would inevitably force the Pentagon to further shrink the size of the military, deal with the unaffordable growth in pay and benefits and make difficult trade-offs between force size and weapons programs, Hagel said.

"The inescapable conclusion is that letting the (additional $500 billion in cuts) persist would be a huge strategic miscalculation that would not be in our country's best interests," Hagel told a Pentagon news conference.

The Pentagon has long been resistant to budget cuts beyond the initial $487 billion required by the Budget Control Act of 2011. Analysts have criticized the nature of the additional sequestration cuts - which are made without regard to strategic importance - but have been skeptical about the Pentagon's dire warnings about additional reductions.

Hagel said the Pentagon went out of its way to avoid "crying wolf" in the review.

Loren Thompson, an analyst at the Lexington Institute think tank, said Hagel actually understated Pentagon concerns, adding that a decline in readiness and equipment essentially meant "war fighters are going to die for lack of equipment and training."

The defense secretary said the Pentagon analysis found that cuts to overhead and compensation would still leave the Pentagon $350 billion to $400 billion shy of the $500 billion in reductions required under sequestration.

He said deeper cuts would require hard trade-offs between force size and developing high-end weapons.

After growing for a decade because of the wars in Iraq and Afghanistan, the Army is reducing its force to 490,000 soldiers from a high of 570,000. Hagel said the review found the Army could cut up to 70,000 more troops and still conduct "priority missions."

Cuts of that size could cause the Army to hit a post-Second World War low.

Hagel said five Air Force fighter squadrons, which typically have 18 to 24 planes apiece, could be eliminated and that the size of the C-130 transport fleet also could be reduced from the current 358.

'MODERNIZATION HOLIDAY?'

A modest reduction in force structure would enable the Pentagon to achieve the $150 billion in cuts over a decade that President Barack Obama has proposed as an alternative to the sequestration cuts, Hagel said.

"Significant reductions beyond the president's plan would require many more dramatic cuts to force structure," he said.

In addition to the president's proposals, the strategic choices review looked at a scenario that would include about $250 billion in defense cuts over a decade, plus the $500 billion in cuts required under sequestration.

"The 'in-between' budget scenario we evaluated would 'bend' our defense strategy in important ways, and sequester-level cuts would 'break' some parts of the strategy no matter how the cuts were made," Hagel said.

He said the review looked at whether it would be better to pursue a smaller force with higher-end capabilities, or a larger force with fewer high-end weapons systems. Pursuing advanced systems would require a still-smaller Army, as well as reducing the number of aircraft carriers to eight or nine from 11.

Fielding a larger force at the expense of more advanced weapons systems would essentially lead to a "decade-long modernization holiday," Hagel said.

Hagel did not identify any specific weapons programs to be cut, but vowed to protect certain programs, including the Lockheed Martin Corp F-35 Joint Strike Fighter, a new bomber and submarine cruise-missile upgrades, if the military opted to preserve high-end capabilities over size.

If size were deemed more important, the military would have to cancel or curtail many weapons programs, slow growth in cyber spending and cut back special operations forces, he said.

Hagel said decisions on how to balance the two stark options would be made in coming months. He said the final decision would be up to Obama.

"Before this review, like many Americans, I wondered why a 10 percent budget cut was in fact so destructive," Hagel said in prepared remarks. "This analysis showed in the starkest terms how a 10 percent defense spending reduction causes in reality a much higher reduction in military readiness and capability."

(Reporting by David Alexander and Andrea Shalal-Esa)

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Reuters: Politics: Congress finally votes to cut student loan interest rates

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Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com 
Congress finally votes to cut student loan interest rates
Jul 31st 2013, 23:27

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Students walk through campus between classes at Santa Monica College in Santa Monica, California April 4, 2012. REUTERS/Bret Hartman

Students walk through campus between classes at Santa Monica College in Santa Monica, California April 4, 2012.

Credit: Reuters/Bret Hartman

By Elvina Nawaguna

WASHINGTON | Wed Jul 31, 2013 6:50pm EDT

WASHINGTON (Reuters) - The House of Representatives on Wednesday passed a bill that would reverse a recent hike in federal student loan interest rates, lowering them to 3.86 percent for undergraduates in the new school year.

The House voted 392-31 in favor of the bill that will switch interest rates to a market-based system.

The bill pegs interest rates on student loans to the 10-year Treasury note plus 2.05 percentage points for undergraduates, and plus 3.6 percentage points for graduate loans.

Interest rates on student loans automatically doubled on July 1 to 6.8 percent from 3.4 percent after Congress failed to meet the deadline to prevent the rate increase.

Congress has since sought a retroactive fix that would keep new borrowers from paying the higher rate.

The bill, a result of extensive negotiations in mid-July among a coalition of U.S. senators composed of Democrats, Republicans and an independent, now waits to be signed into law by President Barack Obama.

(Reporting by Elvina Nawaguna; Editing by Eric Beech)

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We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

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Reuters: Politics: Yemen's president meets senators as U.S. grapples with Guantanamo detainee issue

Reuters: Politics
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Yemen's president meets senators as U.S. grapples with Guantanamo detainee issue
Jul 31st 2013, 22:55

Yemeni President Abd Rabbu Mansour Hadi (C) takes his seat to meet with Senate Foreign Relations Committee Chairman Robert Menendez (D-NJ) (L) at the U.S. Capitol in Washington July 31, 2013.

Credit: Reuters/Jonathan Ernst

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Reuters: Politics: House passes Iran sanctions bill to slash oil exports

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House passes Iran sanctions bill to slash oil exports
Jul 31st 2013, 22:58

EDITORS' NOTE: Reuters and other foreign media are subject to Iranian restrictions on leaving the office to report, film or take pictures in Tehran. A general view of an oil dock is seen from a ship at the port of Kalantari in the city of Chabahar, 300km (186 miles) east of the Strait of Hormuz January 17, 2012.

Credit: Reuters/Raheb Homavandi

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Reuters: Politics: Mayor says didn't get training, San Diego should pay for sex harassment defense

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Mayor says didn't get training, San Diego should pay for sex harassment defense
Jul 31st 2013, 23:37

San Diego mayor Bob Filner speaks at a news conference in San Diego, California in this July 26, 2013 file photo. REUTERS/Fred Greaves/Files

1 of 6. San Diego mayor Bob Filner speaks at a news conference in San Diego, California in this July 26, 2013 file photo.

Credit: Reuters/Fred Greaves/Files

SAN DIEGO | Wed Jul 31, 2013 7:37pm EDT

SAN DIEGO (Reuters) - San Diego Mayor Bob Filner, under mounting pressure to resign over sexual harassment accusations, deserves to have the city pay for his defense because he never received workplace behavior training, his lawyer has told the city attorney.

Filner's private lawyer Harvey Berger wrote in a letter to City Attorney Jan Goldsmith on Monday that San Diego was legally obligated to provide training to prevent sexual harassment to all management-level employees within six months of their joining the city. Goldsmith's office released the letter on Wednesday.

"The city failed to provide such training to Mayor Filner," Berger wrote. "In fact, it is my understanding that such training was scheduled, but that the trainer for the city unilaterally canceled, and never re-scheduled such training for the mayor (and others.)"

Filner, a former Congressman, was elected mayor of San Diego in November 2012. Berger wrote in his letter that Filner had never received training to prevent sexual harassment when he served the San Diego area as a Congressman between 1993 and 2012.

He added that "if there is any liability at all, the city will almost certainly be liable for 'failing to prevent harassment.'"

On July 22 Filner and the city were sued by Irene McCormack Jackson, who accused Filner of asking her to work without panties, demanding kisses, telling her he wanted to see her naked and holding her in a head lock while whispering in her ear.

Since then, seven other women, including a retired U.S. Navy admiral and a college dean, have publicly accused the 70-year-old Democrat of groping and other inappropriate behavior.

Filner has apologized to them and said he would take a two-week leave of absence starting August 5 to undergo intensive therapy.

On Tuesday, the city council declined Berger's request to fund a legal defense of Filner and went a step further by suing the mayor in San Diego Superior Court, seeking to hold him personally liable for any damages the city may be required to pay in the lawsuit.

Berger and the mayor's spokeswoman did not return calls for comment on Wednesday.

On Sunday, U.S. Senator Dianne Feinstein of California called for Filner's resignation during an interview on CNN. U.S. Representatives Susan Davis and Scott Peters, whose districts include parts of San Diego, have also called for Filner to step down.

Last week, U.S. House Democratic Leader Nancy Pelosi said Filner should seek private counseling and compared his behavior to that of former congressman Anthony Weiner, a candidate for New York City mayor who is embroiled in a scandal involving lewd photos and racy online conversations with women.

Once a popular congressman, Weiner resigned in 2011 after saying he had accidentally sent a lewd picture over Twitter.

(Reporting by Marty Graham Writing by Alex Dobuzinskis; Editing by Cynthia Johnston, Toni Reinhold)

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Reuters: Politics: Hunger strike at Guantanamo Bay shows signs of weakening

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Hunger strike at Guantanamo Bay shows signs of weakening
Jul 31st 2013, 22:48

Detainees participate in an early morning prayer session at Camp IV at the detention facility in Guantanamo Bay U.S. Naval Base August 5, 2009. REUTERS/Deborah Gembara

Detainees participate in an early morning prayer session at Camp IV at the detention facility in Guantanamo Bay U.S. Naval Base August 5, 2009.

Credit: Reuters/Deborah Gembara

By Jane Sutton

GUANTANAMO BAY U.S. NAVAL BASE, Cuba | Wed Jul 31, 2013 6:48pm EDT

GUANTANAMO BAY U.S. NAVAL BASE, Cuba (Reuters) - The hunger strike that began nearly six months ago at the Guantanamo Bay detention camp in Cuba and spread to include two-thirds of its 166 prisoners has tapered off with a Ramadan pardon that has allowed some prisoners to be together during Islam's holy month.

Military jailers said the camp was stable and calm after recent upheavals but did not know if the hunger strike would revive when the traditionally quiet period of Ramadan ends on August 7 and normal routines resume.

The force-feeding of hunger-strikers has made global headlines and pressured President Barack Obama to act on a lapsed vow to shut down the camp on the U.S. Naval Base.

"It (the strike) did work. It got everybody talking," said the camp's cultural adviser, a Jordanian native who goes by the name Zak and works with prisoners and camp commanders.

In the last two months the Obama administration has cleared two Algerian prisoners for repatriation, appointed a new State Department envoy to negotiate resettlement of others and announced plans to start long-promised parole-type reviews for those it does not plan to try because it has no admissible evidence linking them to specific attacks.

President Barack Obama will meet on Thursday in Washington with Yemeni President Abd-Rabbu Mansour Hadi to discuss the return of 56 Yemeni prisoners who were cleared for transfer years ago but whose repatriation was blocked because of concerns about instability in their homeland.

The current hunger strike began in February after guards seized family photos, legal documents and other belongings during what was described as a routine cell search. Prisoners accused the guards of mishandling Korans, which camp officials denied.

By mid-April, 43 prisoners had joined the strike, and a few occasionally passed out from dehydration or low blood sugar, a senior medical officer said.

Thirteen had grown so thin that Navy medics were keeping them alive by force-feeding them high-protein shakes via tubes inserted in their nostrils and threaded into their stomachs. Guards strapped them into chairs to prevent resistance.

Prisoners who had long lived in communal cellblocks began refusing to return to their cells at night, covered their windows with protest signs and put cereal boxes over the cameras to obscure the view of guards, camp officials said. Others splashed guards with urine and feces, something that hadn't happened at the prison in recent memory.

Military SWAT teams in riot gear moved in on April 13 and forced inmates back into their cells. A few fought back with broomsticks, and guards fired rubber pellets to control them. Five were hurt in the scuffle, camp officials said.

The hunger strike ratcheted up steadily after that, peaking in early July, with 106 taking part and 46 force-fed at least some of their meals.

When Ramadan began on July 8, camp commanders pardoned all disciplinary infractions and allowed some detainees to return to communal housing.

"Everyone got the slate wiped clean," said Lieutenant Colonel Samuel House, a spokesman for the detention operation.

About 100 who abandoned the hunger strike or never took part have now earned their way back into group housing by following camp rules. They can eat, pray and mingle in groups for five to 18 hours a day before being locked in their cells overnight.

Art and language classes, which were halted with the April raid, have resumed and television-watching privileges have been restored to more prisoners as order returned during Ramadan.

"It's like night and day," said Army Sergeant 1st Class Vernon Branson, a senior watch commander in one of the prisons.

During a recent visit, Reuters saw 16 or 17 bearded prisoners, dressed in white tunics, pants and prayer caps, kneeling on two rows of mats for late-afternoon prayers in the open bay of one communal cellblock. Seen through one-way glass, they looked adequately fed.

Out of sight were the hunger strikers. Camp officials have decided to lock them in single cells until they resume eating, renounce the hunger strike and pass a medical exam.

Yemeni prisoner Samir Moqbel, who is among 86 captives cleared for release in 2010, said he was beaten and forced back into a solitary cell as punishment for refusing to abandon his hunger strike.

"We are protesting," Moqbel said through his attorney, Cori Crider of the human rights group Reprieve. "There are people who have been here for 11 years and are cleared to go. In fact, if you look at the people that they have cleared, that means they are not criminals. They are being kept for no reason."

Camp officials deny anyone was beaten and insist they are not trying to break the hunger strike. They said strikers are kept in single cells so that guards who deliver their food trays can keep track of how much they eat.

The hunger strike had dwindled to 66 participants by Wednesday, with 42 being tube-fed at least some of the time, House said. Nurses, medics and camp officials said all the hunger strikers eat occasional meals.

Prisoners' lawyers accuse the military of downplaying the hunger strike, while camp officials accuse the prisoners and their advocates of exaggerating it for political effect.

"We're not the bad people. But the whole world makes it like we're the bad people and they're the good people," said Zak, the cultural adviser.

He said "instigators and troublemakers" among the prisoners had pledged that there would never be an end to the hunger strikes. "We'll be like the thorn in your throats," Zak quoted them as saying.

About five prisoners have been on a near-constant hunger strike for eight years. Medics who have tube-feed them to keep them alive say the hunger strike is a protest against indefinite detention and not a suicide attempt.

"Starvation is a terrible way to die. No one wants that," said Petty Officer 3rd Class Michael, a Navy hospital corpsman who didn't want his full name used.

Some of the chronic long-term hunger strikers have suffered osteoporosis and bowel problems as a result of extended fasting, and are at risk of heart damage, a medical officer at the detainee hospital said.

The officers at Guantanamo are waiting to see whether the burst of attention from Washington will produce a concrete plan to shut down the camp, as Obama said he would do by 2010.

Some staff at the base have suggested the prisoners might end the hunger strike if they see transfers resuming. Rear Admiral Richard Butler, who took command of the detention operation two weeks ago, isn't so sure.

"It could be goodness for everybody or it could just increase the appetite for more rapid action by everybody," he said.

(Editing by David Adams and Prudence Crowther)

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Reuters: Politics: Obamacare technology testing slated for September: official

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Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com 
Obamacare technology testing slated for September: official
Jul 31st 2013, 22:16

Marilyn Tavenner testifies before a Senate Finance Committee hearing on her nomination to be administrator of the Centers for Medicare and Medicaid Services on Capitol Hill in Washington April 9, 2013.

Credit: Reuters/Kevin Lamarque

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Reuters: Politics: Republicans say Obama comments jeopardize Keystone XL pipeline

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Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com 
Republicans say Obama comments jeopardize Keystone XL pipeline
Jul 31st 2013, 18:39

Demonstrators carry a replica of a pipeline during a march against the Keystone XL pipeline in Washington, February 17, 2013. REUTERS/Richard Clement

Demonstrators carry a replica of a pipeline during a march against the Keystone XL pipeline in Washington, February 17, 2013.

Credit: Reuters/Richard Clement

WASHINGTON | Wed Jul 31, 2013 2:39pm EDT

WASHINGTON (Reuters) - President Barack Obama's recent comments on the Keystone XL oil pipeline, downplaying jobs that would be created, jeopardize the project by adding to its uncertainty, Republican lawmakers said in a letter to the president on Wednesday.

"We are concerned that your recent statements have signaled an arbitrary and abrupt shift in how our nation approves cross-border energy projects," Republican Representatives Fred Upton, Ed Whitfield, and Lee Terry said in a letter.

Obama has said twice over the last few days that the TransCanada Corp pipeline, which would carry about 800,000 barrels per day of tar sands crude and U.S. oil to refineries in Texas, would create far fewer jobs than Republicans have said it will.

"The most realistic estimates" are that the pipeline might create "maybe 2,000 jobs during the construction of the pipeline, which might take a year or two" and then about somewhere 50 to 100 permanent jobs in an economy of 150 million people, Obama said in an interview with the New York Times over the weekend.

On Tuesday, in a speech on the economy in Tennessee, Obama said Keystone would create only 50 permanent jobs, adding: "That's not a jobs plan."

Obama's estimate of the jobs associated with Keystone was lower than that in a State Department environmental assessment in March. It said the pipeline could potentially support about 42,100 jobs and create less than 4,000 construction jobs per year for about two years.

The president also said in a speech last month on climate that the country's national interest would only be served if Keystone does not significantly add to greenhouse gas pollution in the atmosphere.

The lawmakers asked Obama for clarification on the jobs estimates and how he will determine if the project will add to emissions. They asked if the carbon pollution measure is a new standard that will be carried out by the State Department or as a separate decision in the White House.

The White House has said Secretary of State John Kerry will make a recommendation to Obama on the project after the department completes an environmental assessment and national interest determination.

The State Department, which is reviewing Keystone because it would cross the U.S.-Canada border, has yet to finalize the environmental assessment and is reviewing some 1.2 million comments on it. When it is completed, the national interest determination is expected to begin and take about 45 days.

The lawmakers estimated in the letter that the process in the State Department was still at least a year from being completed, a far longer time frame than the State Department indicated in March. They requested a meeting with Obama to discuss Keystone.

Upton is the chairman of the House Committee on Energy and Commerce, Whitfield heads the Subcommittee on Energy and Power, and Terry heads the Subcommittee on Commerce, Manufacturing and Trade.

(Reporting by Timothy Gardner, editing by Ros Krasny; Editing by Bob Burgdorfer)

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Reuters: Politics: Obama's defense of Summers not tied to Fed decision: White House

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Obama's defense of Summers not tied to Fed decision: White House
Jul 31st 2013, 17:42

Former U.S. Treasury Secretary Lawrence H. ''Larry'' Summers speaks during a financial and economic event at the London School of Economics (LSE) in London March 25, 2013.

Credit: Reuters/Jason Alden/POOL

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Reuters: Politics: Obama has 'long list' of Fed candidates: Senate's Reid

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Obama has 'long list' of Fed candidates: Senate's Reid
Jul 31st 2013, 17:09

U.S. President Barack Obama talks with U.S. Senate Majority Leader Harry Reid before walking into a meeting with U.S. Senate Democrats on Capitol Hill in Washington July 31, 2013.

Credit: Reuters/Larry Downing

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Reuters: Politics: U.S. Senate panel approves bill to bolster FHA finances

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Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com 
U.S. Senate panel approves bill to bolster FHA finances
Jul 31st 2013, 16:56

WASHINGTON | Wed Jul 31, 2013 12:56pm EDT

WASHINGTON (Reuters) - A U.S. Senate panel on Wednesday approved a bipartisan bill aimed at bolstering the finances of the Federal Housing Administration, which may need to turn to taxpayers for a bailout later this year.

The Senate Banking Committee passed the FHA bill by a vote of 21 to 1. It was introduced by South Dakota Democrat Tim Johnson, the committee's chairman, and Idaho Senator Mike Crapo, the top Republican.

The FHA, which insures about a third of U.S. mortgages, faces a projected shortfall of $16.3 billion due in part to defaults on mortgages it guaranteed from 2007 to 2009 as the housing bubble deflated.

It could be forced to turn to the Treasury Department for a bailout at the end of September.

"This bill will give the Federal Housing Administration the tools it needs to get back on track, so it can continue to help qualified borrowers realize the dream of homeownership and provide stability to the housing market in times of stress," Johnson said in a statement after the vote.

The legislation now goes to the full Senate for a vote, but that is not likely to occur until after a month-long recess that begins next week. It could come up for a vote on its own or be included in a broader housing finance reform package that lawmakers hope to craft soon.

The bill would require minimum annual mortgage insurance premiums; require FHA's parent agency, the Department of Housing and Urban Development, to evaluate underwriting standards; and create new tools for punishing lenders who commit fraud.

Several changes to an initial draft bill Johnson and Crapo had introduced were incorporated in the legislation, including a plan to establish annual "stress tests" of the FHA, similar to the tests the Federal Reserve runs to gauge banks' health.

"The FHA is broke, plain and simple, and we absolutely have to get the taxpayers out of the bailout business," said Senator David Vitter, a Louisiana Republican and the sponsor of the stress test provision.

The U.S. House of Representatives passed its own FHA bill last month. Its version would give the agency new authority to tighten terms for reverse mortgages.

(Reporting by Emily Stephenson; Editing by Dan Grebler)

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