Indian tender twisted to favour Italian firm: Prosecutors

BUSTO ARSIZIO, ITALY: Three brothers with family ties to a former head of the Indian air force helped to twist rules in a helicopter tender won by Italy's AgustaWestland, prosecutors alleged in an arrest warrant for a top Italian businessman.

Italian prosecutors said in the warrant reviewed by Reuters on Tuesday that two managers at AgustaWestland, a unit of defence group Finmeccanica, paid go-betweens to help it win the 2010 contract to supply 12 helicopters to India.

Part of these payments ended up with the three Indian brothers, Juli, Docsa and Sandeep Tyagi, whose cousin Sashi Tyagi was former Indian air force chief. None of the Tyagis has been accused of wrongdoing by officials in India.

In a growing corruption scandal, police arrested on Tuesday AgustaWestland's former chief executive Giuseppe Orsi, who now heads Finmeccanica Orsi and denies any wrongdoing over the 556-million-euro deal.

The case, which is still in its preliminary investigation phase, has rocked Italy before parliamentary elections on February 24-25, and also in India, the world's largest weapon importer.

Prosecutors in the northern town of Busto Arsizio, near AgustaWestland's headquarters, said Orsi hired US-born Guido Ralph Haschke, who was then a consultant for the Finmeccanica group, to lead dealings in India to secure the contract.

Haschke and his partner Carlo Gerosa, prosecutors said, had close ties with the Tyagi brothers.

Prosecutors allege that Orsi, along with the current chief executive of AgustaWestland Bruno Spagnolini, paid 400,000 euros in consultancy fees to Haschke and Gerosa. "Of this, 100,000 euros in cash were given to the Tyagi brothers," they said in the 65-page warrant.

The money went to the brothers to pressure Indian officials and help doctor the tender terms to favour the specification of AgustaWestland's helicopters, the prosecutors alleged.

The tender was changed to accommodate AgustaWestland by, among other things, lowering required altitudes where the helicopters could operate to 15,000 feet from 18,000 feet, "thus allowing AgustaWestland, which otherwise would not even have been able to present an offer, to take part in the tender", the warrant said.

The tender terms were also changed to introduce an engine failure flying test. This favoured AgustaWestland as its helicopters were the only ones in the tender operating with three engines.

Orsi's lawyer said his client denied distributing any money or pocketing a single euro, adding that the investigation did not provide any evidence of illicit payments. AgustaWestland said on Tuesday it supported Spagnolini who was placed under house arrest.

The warrant also covered Haschke and Gerosa. Neither has been arrested as they are in Switzerland. A lawyer for Haschke, contacted by reporters, declined to comment on the case while Gerosa could not be reached for comment.

Reuters was not immediately able to locate the Tyagi brothers, nor Sashi Tyagi.

Sashi Tyagi, head of India's air force from 2004-2007, in November told a news weekly that he had no memory of the issue. The warrant did not explain how Tyagi might have been involved in a deal completed after he had left his post.

The investigation into Finmeccanica, which started more than a year ago, is one of a series of corruption scandals in defence dealmaking in India. Defence minister A K Antony has ordered an inquiry into the deal to be conducted by the Central Bureau of Investigation, the country's federal police force.

The arrests over Indian bribery allegations come as Finmeccanica unit Alenia Aermacchi hopes to compete for a contract to supply over 50 military transport aircraft to India in competition with European aerospace group EADS.

According to specialist defence publication IHS Jane's, Alenia would build 40 of the 56 C-27J Spartan airlifters in India and use the same assembly line to meet future regional demand for tactical air transport.

The military arm of EADS subsidiary Airbus told Reuters last week it would offer its C295 military transport plane as an alternative, adding that manufacturers were waiting for a formal competition document from the Indian government.

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Study questions kidney cancer treatment in elderly

In a stunning example of when treatment might be worse than the disease, a large review of Medicare records finds that older people with small kidney tumors were much less likely to die over the next five years if doctors monitored them instead of operating right away.

Even though nearly all of these tumors turned out to be cancer, they rarely proved fatal. And surgery roughly doubled patients' risk of developing heart problems or dying of other causes, doctors found.

After five years, 24 percent of those who had surgery had died, compared to only 13 percent of those who chose monitoring. Just 3 percent of people in each group died of kidney cancer.

The study only involved people 66 and older, but half of all kidney cancers occur in this age group. Younger people with longer life expectancies should still be offered surgery, doctors stressed.

The study also was observational — not an experiment where some people were given surgery and others were monitored, so it cannot prove which approach is best. Yet it offers a real-world look at how more than 7,000 Medicare patients with kidney tumors fared. Surgery is the standard treatment now.

"I think it should change care" and that older patients should be told "that they don't necessarily need to have the kidney tumor removed," said Dr. William Huang of New York University Langone Medical Center. "If the treatment doesn't improve cancer outcomes, then we should consider leaving them alone."

He led the study and will give results at a medical meeting in Orlando, Fla., later this week. The research was discussed Tuesday in a telephone news conference sponsored by the American Society of Clinical Oncology and two other cancer groups.

In the United States, about 65,000 new cases of kidney cancer and 13,700 deaths from the disease are expected this year. Two-thirds of cases are diagnosed at the local stage, when five-year survival is more than 90 percent.

However, most kidney tumors these days are found not because they cause symptoms, but are spotted by accident when people are having an X-ray or other imaging test for something else, like back trouble or chest pain.

Cancer experts increasingly question the need to treat certain slow-growing cancers that are not causing symptoms — prostate cancer in particular. Researchers wanted to know how life-threatening small kidney tumors were, especially in older people most likely to suffer complications from surgery.

They used federal cancer registries and Medicare records from 2000 to 2007 to find 8,317 people 66 and older with kidney tumors less than 1.5 inches wide.

Cancer was confirmed in 7,148 of them. About three-quarters of them had surgery and the rest chose to be monitored with periodic imaging tests.

After five years, 1,536 had died, including 191 of kidney cancer. For every 100 patients who chose monitoring, 11 more were alive at the five-year mark compared to the surgery group. Only 6 percent of those who chose monitoring eventually had surgery.

Furthermore, 27 percent of the surgery group but only 13 percent of the monitoring group developed a cardiovascular problem such as a heart attack, heart disease or stroke. These problems were more likely if doctors removed the entire kidney instead of just a part of it.

The results may help doctors persuade more patients to give monitoring a chance, said a cancer specialist with no role in the research, Dr. Bruce Roth of Washington University in St. Louis.

Some patients with any abnormality "can't sleep at night until something's done about it," he said. Doctors need to say, "We're not sticking our head in the sand, we're going to follow this" and can operate if it gets worse.

One of Huang's patients — 81-year-old Rhona Landorf, who lives in New York City — needed little persuasion.

"I was very happy not to have to be operated on," she said. "He said it's very slow growing and that having an operation would be worse for me than the cancer."

Landorf said her father had been a doctor, and she trusts her doctors' advice. Does she think about her tumor? "Not at all," she said.

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Online:

Kidney cancer info: http://www.cancer.net/cancer-types/kidney-cancer

and http://www.cancer.gov/cancertopics/types/kidney

Study: http://gucasym.org

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

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State of the Union: Obama Pushes Job Creation

Pursuing an aggressive and diverse early second-term agenda, President Obama turned his focus Tuesday night squarely to the economy, using his State of the Union address to unveil new government initiatives aimed at creating jobs.

The defining duty of the new Congress and new administration is to "reignite the true engine of America's economic growth -- a rising, thriving middle class," Obama said Tuesday night from the House chamber.

"That must be the North Star that guides our efforts," he said.

Obama's proposals had a familiar ring, including re-packaged economic ideas but also offering several bold new measures aimed at boosting the middle class.

None of the proposals would add to the deficit "by a single dime," Obama pledged, with costs offset by savings carved out in the budget and from money saved from ending two wars.

"It's not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth," Obama said.

For the first time as president, Obama called for raising the minimum wage from $7.25 to $9.00 an hour by 2015. He proposed to ensure future increases by indexing the minimum wage to inflation.

He proposed a national goal of universal pre-school education, an effort to help states provide tens of thousands of low- to middle-income four-year-old children access to quality public education from an earlier age.

Charles Dharapak/Pool/AP Photo

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And, to heal the nation's crumbling roads and bridges, Obama offered a $50 billion "fix it first" infrastructure program that would prioritize repair of existing structures before building new ones.

"Every day, we should ask ourselves three questions as a nation," Obama said. "How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?"

Answers to those questions, the president suggested, include redoubling investments in clean energy technologies -- a step which he said would both benefit the environment and reduce U.S. dependence on foreign oil.

"For the sake of our children and our future, we must do more to combat climate change," he said.

He called for doubling the amount of renewable electricity generation in the U.S. by 2020, and announced an energy version of his "Race to the Top" education program that would give states grants for the best energy efficiency programs.

Related: 7 Things Obama Says at Every State of the Union

In tandem with his economic focus, Obama announced the withdrawal of 34,000 U.S. troops from Afghanistan by this time next year, cutting in half the current force and marking a quickened pace for the final exit of U.S. combat forces by a 2014 deadline.

There are currently 66,000 U.S. troops serving in Afghanistan. Obama has vowed to bring nearly all of them home by the end of next year, though a small contingent will likely remain to train Afghan forces and assist counterterrorism operations, officials have said.

Obama touched briefly on his recently-unveiled proposals to overhaul the nation's immigration system, expand rights for gay and lesbian Americans and curb an epidemic of gun violence.

With dozens of victims of gun violence looking on from the House gallery, including former Rep. Gabby Giffords, and families of victims from shootings at Newtown, Conn., Oak Creek, Wisc., and Aurora, Colo., Obama made an emotional plea for an up-or-down vote on his gun control plan.

"Each of these proposals deserves a vote in Congress," he said of proposed restrictions on assault-style weapons and high capacity magazines, and enhanced background checks, among other measures.

"If you want to vote no, that's your choice," he said. "But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations and anniversaries have been stolen from our lives by a bullet from a gun."

Read More: President Obama's Past State of the Union Promises

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North Korea conducts nuclear test: South Korea defense ministry

SEOUL (Reuters) - North Korea conducted a nuclear test on Tuesday, South Korea's defence ministry said, after seismic activity measuring 4.9 magnitude was registered by the U.S. Geological Survey.

The epicentre of the seismic activity, which was only one km below the Earth's surface, was close to the North's known nuclear test site.

"We've been informed by the South Koreans that there's been a (North Korean) nuclear test," a U.N. Security Council diplomat told Reuters on condition of anonymity.

An international nuclear test monitoring agency said the location of the seismic event was "roughly congruent with" 2006 and 2008 tests carried out by the reclusive state and had "clear explosion-like characteristics".

North Korea, which had been threatening a third nuclear test, had informed Beijing and Washington on Monday of plans to undertake a test, South Korea's Yonhap news agency reported.

The isolated state, which is banned under U.N. Security Council resolutions from developing nuclear and missile technology, did not make any immediate comment.

North Korea is not prone to seismic activity and it may take hours or even days to determine officially whether a nuclear test had been conducted.

South Korea's defence ministry said the North Korean seismic event could be the result of a 6-7 kiloton or stronger nuclear blast. South Korea's President Lee Myung-bak called a national security council meeting for 0400 GMT.

North Korea successfully launched a long-range rocket in December in violation of U.N. resolutions that banned it from developing missile or nuclear technology after nuclear tests in 2006 and 2009.

It announced plans for a third nuclear test in response to the sanctions imposed in January after the rocket launch, although satellite imagery indicated it has been readying its test site for more than a year.

(Reporting by David Chance; Editing by Michael Perry and Paul Tait)

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Sri Lanka drops IMF loan bid over spending dispute

COLOMBO: Sri Lanka on Tuesday dropped plans for a fresh $1.0-billion loan from the International Monetary Fund following disagreements over how the money should be spent, the central bank said.

The government announced last month that it was seeking a new cash infusion from the IMF after drawing down a previous $2.6-billion bailout loan six months ago.

"Sri Lankan authorities have decided not to pursue a new programme with the IMF, but to continue maintaining the close relationship with the Fund under standard consultation processes similar to many other member countries," the central bank said.

Treasury chief Punchi Banda Jayasundera had said he wanted the new IMF loan to spend on infrastructure while the US-based lender was only willing to hand over money to bolster the bank's foreign reserves.

"The IMF has indicated that the Fund may not be in a position to consider any direct or indirect budget support to Sri Lanka," the bank statement said.

Money for foreign reserves is not meant for immediate spending, but serves to enhance a country's creditworthiness.

An IMF team is currently in Colombo conducting annual consultations with Sri Lankan authorities.

The 2009 IMF bailout was secured when Sri Lanka's foreign reserves crashed to a dangerously low level of $1 billion. They now stand at a comfortable $7 billion.

The bank also announced on Monday that Sri Lanka's new taxes on cars and luxury goods had helped reduce imports last year and narrow the huge trade deficit.

Faced with a balance of payments problem in 2011, the government hiked car imports by up to 300 per cent, stopped credit for luxury imports and allowed the local currency to depreciate sharply by nearly 20 per cent.

The government has revised down its growth estimate for 2012 from 7.2 per cent to 6.5 per cent.

Sri Lanka's economy grew 8.3 per cent in 2011, up from 8.0 per cent in 2010, the first full year after government forces crushed Tamil rebels bringing an end to the island's ethnic war.

- AFP/ck

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UP CM Akhilesh to meet Allahabad stampede victims today

ALLAHABAD: Uttar Pradesh chief minister Akhilesh Yadav will visit Allahabad on Tuesday to meet those injured in the stampede at Allahabad railway station.

He is also expected to take stock of relief operations for the Kumbh pilgrims.

Expressing grief over the tragedy, Yadav had earlier on Monday said that the priority of his government was to ensure safety of devotees at the Kumbh Mela.

"The most important issue for the government and the officials is to ensure that rest of the people, who are stranded at railway station or staying at the Kumbh after taking dip, should reach their home safely and without any harassment," he told media in Etawah town.

Azam Khan, a senior cabinet minister in the Akhilesh Yadav-led Samajwadi Party Government (SP) Government, resigned as the head of Kumbh Mela Management Committee on 'moral grounds' yesterday.

"The incident has hurt me. I, taking moral responsibility, have decided to tender resignation as the head of the Kumbh Management Committee. I have conveyed his message to the chief minister and you (reporters) as well," he told media in Moradabad.

The Uttar Pradesh government has ordered an inquiry into the stampede, and asked the railways to make proper arrangements to clear rush of devotees. The Uttar Pradesh government has also sanctioned an ex-gratia of Rs 5 lakh to the kin of each of the dead persons.

At least 36 people lost their lives and over 40 others got injured in the stampede that broke out at the Allahabad railway station on Sunday night. The injured are being treated at the railway hospitals and the SRN Hospital in Allahabad. It is, however, feared that the death toll may go up since the condition of some of the injured is said to be in a critical condition.

The stampede occurred at platforms 5 and where thousands of passengers, mostly Mahakumbh devotees returning after taking the holy dip at the Sangam, had gathered to board a train.

The preliminary reports said that the stampede broke out when the railing leading to a footbridge collapsed.

Railways minister PK Bansal, however, yesterday ruled out the collapse of footbridge or any railing on the railway station as the cause for stampede.

Bansal claimed that arrangements at the railway platform were adequate. He also announced compensation of Rs 1 lakh to the families of the dead, 50,000 to those having grievous injuries and 25,000 to those injured.

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Pope shows lifetime jobs aren't always for life

The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.

There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.

"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.

Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.

Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.

When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."

One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.

The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."

In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."

"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.

Experts on aging agreed.

"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."

Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.

But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.

"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.

"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.

Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.

In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.

Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.

The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.

Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.

Other leaders who are still working:

—England's Queen Elizabeth, 86.

—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.

—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.

—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.

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Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.

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

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North Korean Tremor Raises Fear of Nuke Test

A large tremor measured at magnitude 4.9 was detected in North Korea and governments in the region scrambled to determine whether it was a nuclear test that the North Korean regime has vowed to carry out despite international protests.

Japan's prime minister has called an urgent security meeting, according to chief government spokesman Yoshihide Suga, and South Korea raised its military alert level, the AP reported.

Suspicions were aroused when the U.S. Geological Survey said it had detected a magnitude 4.9 earthquake Tuesday in North Korea.

The Comprehensive Test Ban Treaty Organization told ABC News, "We confirm that a suspicious seismic event has taken place in North Korea." The agency said it was trying to confirm the nature of the tremor.

"The event shows clear explosion-like characteristics and its location is roughly congruent with the 2006 and 2009 DPRK (North Korea) nuclear tests," said Tibor Toth, executive secretary of the organization.

North Korea Threatens More Nuclear Tests, Warns U.S. Watch Video

"If confirmed as a nuclear test, this act would constitute a clear threat to international peace and security, and challenges efforts made to strengthen global nuclear disarmament and non-proliferation," Toth said in a statement on the organization's web site.

Kim Min-seok, a South Korean Defense Ministry spokesman, told reporters that North Korea informed United States and China that it intended to carry out another nuclear test, according to the AP. But U.S. officials did not respond to calls from ABC News Monday night.

The seismic force measured 10 kilotons, according to Min-seok.

"Now that's an absolutely huge explosion by conventional terms. It's a smallish, but not tiny explosion by nuclear terms. It's about two-thirds the size of the bomb that the U.S. dropped on Hiroshima," James Acton, a Senior Associate at the Carnegie Endowment for International Peace, told ABC News.

North Korea threatened in January to carry out a "higher-level" test following the successful Dec. 12 launch of a long range rocket. At the time, North Korea's leader Kim Jong-Un said his country's weapons tests were specifically targeting the United States.

The suspicious tremor comes just hours before President Obama is to give the State of the Union address, and it marks the first diplomatic test in the region for new Secretary of State John Kerry.

China, North Korea's main ally in the region, has warned North Korea it would cut back severely needed food assistance if it carried out a test. Each year China donates approximately half of the food North Korea lacks to feed its people and half of all oil the country consumes.

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Gunbattle rocks Gao after rebels surprise French, Malians

GAO, Mali (Reuters) - Islamist insurgents launched a surprise raid in the heart of the Malian town of Gao on Sunday, battling French and local troops in a blow to efforts to secure Mali's recaptured north.

Local residents hid in their homes or crouched behind walls as the crackle of gunfire from running street battles resounded through the sandy streets and mud-brick houses of the ancient Niger River town, retaken from Islamist rebels last month by a French-led offensive.

French helicopters clattered overhead and fired on al Qaeda-allied rebels armed with AK-47s and rocket-propelled grenades who had infiltrated the central market area and holed up in a police station, Malian and French officers said.

The fighting inside Gao was certain to raise fears that pockets of determined Islamists who have escaped the lightning four-week-old French intervention in Mali will strike back with guerrilla attacks and suicide bombings.

After driving the bulk of the insurgents from major northern towns such as Timbuktu and Gao, French forces are trying to search out their bases in the remote and rugged Adrar des Ifoghas mountains, far up in the northeast.

But with Mali's weak army unable to secure recaptured zones, and the deployment of a larger African security force slowed by delays and kit shortages, vast areas to the rear of the French forward lines now look vulnerable to guerrilla activity.

"They infiltrated the town via the river. We think there were about 10 of them. They were identified by the population and they went into the police station," said General Bernard Barrera, commander of French ground operations in Mali.

He told reporters in Gao that French helicopters had intervened to help Malian troops pinned down by the rebels, who threw grenades from rooftops.

Malian gendarme Colonel Saliou Maiga told Reuters the insurgents intended to carry out suicide attacks in the town.

SUICIDE BOMBERS

No casualty toll was immediately available. But a Reuters reporter in Gao saw one body crumpled over a motorcycle. Malian soldiers said some of the raiders may have come on motorbikes.

The gunfire in Gao erupted hours after French and Malian forces reinforced a checkpoint on the northern outskirts that had been attacked for the second time in two days by a suicide bomber.

Abdoul Abdoulaye Sidibe, a Malian parliamentarian from Gao, said the rebel infiltrators were from the MUJWA group that had held the town until French forces liberated it late last month.

MUJWA is a splinter faction of al Qaeda's North African wing AQIM which, in loose alliance with the home-grown Malian Islamist group Ansar Dine, held Mali's main northern urban areas for 10 months until the French offensive drove them out.

Late on Saturday, an army checkpoint in Gao's northern outskirts came under attack by a group of Islamist rebels who fired from a road and bridge that lead north through the desert scrub by the Niger River to Bourem, 80 km (50 miles) away.

"Our soldiers came under heavy gunfire from jihadists from the bridge ... At the same time, another one flanked round and jumped over the wall. He was able to set off his suicide belt," Malian Captain Sidiki Diarra told reporters.

The bomber died and one Malian soldier was lightly wounded, he added. In Friday's motorbike suicide bomber attack, a Malian soldier was also injured.

Diarra described Saturday's bomber as a bearded Arab.

Since Gao and the UNESCO World Heritage city of Timbuktu were retaken last month, several Malian soldiers have been killed in landmine explosions on a main road leading north.

French and Malian officers say pockets of rebels are still in the bush and desert between major towns and pose a threat of hit-and-run guerrilla raids and bombings.

"We are in a dangerous zone... we can't be everywhere," a French officer told reporters, asking not to be named.

One local resident reported seeing a group of 10 armed Islamist fighters at Batel, just 10 km (6 miles) from Gao.

OPERATIONS IN NORTHEAST

The French, who have around 4,000 troops in Mali, are now focusing their offensive operations several hundred kilometers (miles) north of Gao in a hunt for the Islamist insurgents.

On Friday, French special forces paratroopers seized the airstrip and town of Tessalit, near the Algerian border.

From here, the French, aided by around 1,000 Chadian troops in the northeast Kidal region, are expected to conduct combat patrols into the Adrar des Ifoghas mountains.

The remaining Islamists are believed to have hideouts and supply depots in a rugged, sun-blasted range of rocky gullies and caves, and are also thought to be holding at least seven French hostages previously seized in the Sahel.

The U.S. and European governments back the French-led operation as a defense against Islamist jihadists threatening wider attacks, but rule out sending their own combat troops.

To accompany the military offensive, France and its allies are urging Mali authorities to open a national reconciliation dialogue that addresses the pro-autonomy grievances of northern communities like the Tuaregs, and to hold democratic elections.

Interim President Dioncounda Traore, appointed after a military coup last year that plunged the West African state into chaos and led to the Islamist occupation of the north, has said he intends to hold elections by July 31.

But he faces splits within the divided Malian army, where rival units are still at loggerheads.

(Additional reporting by Tiemoko Diallo and Adama Diarra in Bamako; Writing by Joe Bavier and Pascal Fletcher; Editing by Kevin Liffey)

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"Babel" by Mumford&Sons wins best album Grammy

LOS ANGELES: "Babel" by British folk rockers Mumford&Sons won the coveted Album of the Year award at the 55th Grammy Awards on Sunday.

They beat "El Camino" by The Black Keys, "Some Nights" by fun., "Channel Orange" by R&B singer Frank Ocean and "Blunderbuss" by Jack White, at the climax of the music industry's biggest awards show.

The top prize largely came as a surprise after Mumford&Sons lost out in other key categories, although they took the Best Long Form Music Video for "Big Easy Express."

Mumford&Sons had been nominated for Grammys the previous two years, including for Record of the Year in 2012, but had not taken home a prize until Sunday.

"Somebody That I Used to Know" by Gotye featuring Kimbra won the coveted Record of the Year award.

The song beat "Lonely Boy" by The Black Keys, "Stronger (What Doesn't Kill You)" by Kelly Clarkson, "We Are Young" by fun., "Thinkin Bout You" by Frank Ocean and "We Are Never Ever Getting Back Together" by Taylor Swift.

Belgian-Australian Gotye had already won the 2013 best pop duo/group performance and best alternative music album for "Making Mirrors," his third studio album.

He was presented with the best record award by pop icon Prince. "We're pretty huge fans, we've grown up listening to his music...that's pretty cool," he said, speaking backstage.

"We didn't expect to win... There are so many amazing artists and pieces of music... it's a little bit flabbergasting," he added.

"Somebody That I Used to Know" has been a hit in several countries.

Indie pop band fun. won the best new artist prize at the awards, their second win in the top four categories.

The New York band had already taken the Best Song Grammy for "We Are Young" and are also shortlisted in Album of the Year category, although they fell short of a landmark clean sweep when Record of the Year went to Gotye.

For the best new artist award, fun. beat out high-selling R&B singer Frank Ocean, Americana rockers Alabama Shakes, folk band The Lumineers and country singer Hunter Hayes.

The members of fun. were joined at the Grammy ceremony by Lena Dunham, creator of the critically acclaimed dark comedy "Girls," who is said to be dating the band's guitarist Jack Antonoff.

Their beaten rivals in the best song category were Ed Sheeran for "The A Team," Miguel for "Adorn," Carly Rae Jepsen for "Call Me Maybe" and the songwriters of Kelly Clarkson's "Stronger (What Doesn't Kill You)."

The band topped Grammy nominations announced in December.

If they were to win all four of the major categories, it would mark the first such achievement in more than 30 years, according to The New York Times.

British songstress Adele won the Grammy for best pop solo performance, the first award handed out during the main event.

She also gave a typically straight-talking answer when asked how she is feeling about the Oscars later this month, where she is nominated for best song for the theme tune to Bond movie "Skyfall," admitting she was nervous.

The 24-year-old singer, who swept the board with six Grammys at last year's awards show, took the pop performance prize for a live rendition of her hit "Set Fire to the Rain."

"My good luck charm, J-Lo," she said as she accepted the award from Jennifer Lopez and Pitbull. "This is amazing. I wanted to come and be part of the night. I loved it last year, obviously," she added.

Last year she won best song, best record, best album for her breakthrough "21," best short video, best pop album and best pop artist, winning all six categories in which she was nominated.

Speaking backstage after accepting her award Sunday, Adele said it was less stressful this year than last, even though she is now a mother, having given birth in October.

"I've been up since 6:00 am so I'm quite tired," she told reporters, but added that, as a new mother "it's nice, I haven't been as stressed out... you have to prioritize what you stress about and worry about."

Here are the winners of the main categories at the 55th Grammy Awards:

Album of the Year: "Babel" - Mumford&Sons

Record of the Year: "Somebody That I Used To Know" - Gotye featuring Kimbra

Song of the Year: "We Are Young" - fun.

Best New Artist: fun.

Best Rock Song: "Lonely Boy" - The Black Keys

Best Rock Album: "El Camino" - The Black Keys

Best R&B Song: "Adorn" - Miguel

Best R&B Album: "Black Radio" - Robert Glasper Experiment

Best R&B Performance: "Climax" - Usher

Best Traditional R&B Performance: "Love on Top" - Beyonce

Best Urban Contemporary Album: "Channel Orange" - Frank Ocean

Best Pop Performance, Solo: "Set Fire to the Rain (live)" - Adele

Best Pop Performance, Duo or Group: "Somebody That I Used to Know" - Gotye featuring Kimbra

Best Pop Vocal Album: "Stronger" - Kelly Clarkson

Best Traditional Pop Vocal Album: "Kisses On The Bottom" - Paul McCartney

Best Rap Song: "Ni**as In Paris" - Jay-Z & Kanye West

Best Rap Album: "Take Care" - Drake

Best World Music Album: "The Living Room Sessions Part 1" - Ravi Shankar

Best Alternative Music Album: "Making Mirrors" - Gotye

Best Orchestral Performance: "Adams: Harmonielehre & Short Ride In A Fast Machine" - San Francisco Symphony

Best Opera Recording: "Wagner: Der Ring Des Nibelungen" - The Metropolitan Opera Orchestra, The Metropolitan Opera Chorus

Best Jazz Instrumental Album: "Unity Band" - Pat Metheny Unity Band

Best Country Song: "Blown Away" - Carrie Underwood

Best Country Album: "Uncaged" - Zac Brown Band

Best Hard Rock/Metal Performance: "Love Bites (So Do I)" - Halestorm

Best New Age Album: "Echoes of Love" - Omar Akram

- AFP/ir

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