India tests missile shield, DRDO says it will be operational by 2014

NEW DELHI: There were some big fireworks over the Bay of Bengal on Friday afternoon when India tested its experimental ballistic missile defence (BMD) system to intercept two "incoming hostile" missiles with interceptor missiles.

Elated with the "bang-on accurate" test, the seventh time the BMD system has been tested successfully over the last six years, the Defence Research and Development Organization (DRDO) promptly declared a missile shield could be deployed for New Delhi by 2014.

"We are now ready to convert the BMD system from an experimental to an operational one that can be deployed on demand. I am confident we can deploy the Phase-I of the BMD system by 2014," said DRDO chief V K Saraswat, speaking to TOI from the Wheeler Island test range off Odisha coast.

But the reality check is that even American missile defence systems like Patriot Advanced Capability-3, Aegis BMD-3 and THAAD (terminal high-altitude area defence), as also Russian and Israeli ones, are not fully foolproof as of now.

In Friday's test, only one of the incoming missiles was real: a modified Prithvi missile mimicking M-9/M-11 class of Chinese Dong Feng short-range ballistic missiles. The other was an electronically simulated missile of a longer range of 1,500km.

Both "enemy" missile launches were, however, conducted "in the same window" to test the BMD system's capability to handle "multiple threats" simultaneously. "This has been done only by the two superpowers (US and Russia) till now. The real missile was destroyed at an altitude of 14.7-km by the interceptor missile with a direct hit," said Saraswat.

The electronic missile was intercepted at an altitude of 120km. Both the missiles were picked up and tracked by long-range and multi-function radars, which in turn passed the data to guidance and launch computers of the interceptors to "kill" them. "The entire test was done practically in deployment configuration," he said.

While it remains to be seen whether DRDO can indeed deploy an effective missile shield by 2014, it has also begun work on adding a third tier to the BMD system. The existing two-tier system is designed to track and destroy ballistic missiles both inside (endo) and outside (exo) the earth's atmosphere.

The third layer is planned to tackle low-flying cruise missiles, artillery projectiles and rockets in the line with the overall aim to achieve "near 100% kill or interception probability".

"Look what is happening in the Middle-East (Hamas firing rockets at Israeli cities before the recent ceasefire)...hence, protection against low-cost, very close range threats is also needed. We have begun some initial work on the third-tier. We will try to integrate it with the BMD system once it fructifies," said Saraswat.

At present, Phase-I of the BMD system, with interceptors flying at 4.5 Mach high-supersonic speeds to intercept enemy missiles, is meant to tackle hostile missiles with a 2,000-km strike range.

As per DRDO's plans, Phase-II will be geared for taking on 5,000-km range missiles, virtually in the class of ICBMs (intercontinental ballistic missiles), with interceptors at hypersonic speeds of 6-7 Mach.

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AP PHOTOS: Simple surgery heals blind Indonesians

PADANG SIDEMPUAN, Indonesia (AP) — They came from the remotest parts of Indonesia, taking crowded overnight ferries and riding for hours in cars or buses — all in the hope that a simple, and free, surgical procedure would restore their eyesight.

Many patients were elderly and needed help to reach two hospitals in Sumatra where mass eye camps were held earlier this month by Nepalese surgeon Dr. Sanduk Ruit. During eight days, more than 1,400 cataracts were removed.

The patients camped out, sleeping side-by-side on military cots, eating donated food while fire trucks supplied water for showers and toilets. Many who had given up hope of seeing again left smiling after their bandages were removed.

"I've been blind for three years, and it's really bad," said Arlita Tobing, 65, whose sight was restored after the surgery. "I worked on someone's farm, but I couldn't work anymore."

Indonesia has one of the highest rates of blindness in the world, making it a target country for Ruit who travels throughout the developing world holding free mass eye camps while training doctors to perform the simple, stitch-free procedure he pioneered. He often visits hard-to-reach remote areas where health care is scarce and patients are poor. He believes that by teaching doctors how to perform his method of cataract removal, the rate of blindness can be reduced worldwide.

Cataracts are the leading cause of blindness globally, affecting about 20 million people who mostly live in poor countries, according to the World Health Organization.

"We get only one life, and that life is very short. I am blessed by God to have this opportunity," said Ruit, who runs the Tilganga Eye Center in Katmandu, Nepal. "The most important of that is training, taking the idea to other people."

During the recent camps, Ruit trained six doctors from Indonesia, Thailand and Singapore.

Here, in images, are scenes from the mobile eye camps:

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Black Friday Frenzy Brings Fights, Injuries

Black Friday, one of the most ballyhooed shopping days of the year, has also proven to be hazardous, with incidents including fights between frenzied shoppers and parking-lot robberies.

Two people were run down Thanksgiving night in the parking lot of a Covington, Wash., Walmart by a man police suspected of being intoxicated.

Shoppers Descend on Black Friday Deals

The 71-year-old driver was arrested on a vehicular assault charge after the Thanksgiving incident, spokeswoman Sgt. Cindi West of the Kings County Sheriff's Office said.

The female victim, whose identity has yet to be released, was pinned beneath the driver's Mercury SUV until being rescued by the fire department. She was flown to Harborview Medical Center, where she was listed in serious condition, West said.

The male victim was also taken to Harborview Medical Center, where, West said, he was listed in good condition.

High tension was at the entrances as people lined up outside stores, waiting for the doors to open.

Black Friday Holiday Shopping Bargains and Pitfalls Watch Video

Black Friday Shoppers Brave Long Lines, Short Tempers Watch Video

At a San Antonio, Texas, Sears, one man argued with customers and even punched one in order to get to the front of the line, prompting a man with a concealed carry permit to pull a gun, said Matthew Porter, public information officer of the San Antonio Police Department.

"It was a little chaotic. People were exiting the store," Porter said. "Fortunately for us, officers responded quickly and were able to ease the commotion."

The man who allegedly caused the altercation fled the scene and remains at large, Porter said. The shopper who pulled the gun will not face charges, he said, because of his concealed carry permit.

One man was treated at the scene for injuries sustained when people rushed out of the store, Porter said.

PHOTOS: Black Friday Shoppers Hit Stores

In Maryland, there has been at least one report of a parking lot robbery.

A 14-year-old boy told police he was robbed of his Thanksgiving night purchases by five men in the parking lot of a Bed Bath and Beyond store early this morning, the Baltimore Sun reported.

And in Massachusetts, Kmart employees tried to locate a shopper over the intercom after a 2-year-old was reported to be alone in a car, ABC News affiliate WCVB-TV reported.

Police arrived to break into the car and remove the child. The boy's caretaker, his mother's boyfriend, denied the incident took place, according to the station, and was not arrested.

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Protests after "pharaoh" Mursi assumes powers in Egypt

CAIRO (Reuters) - Egyptian President Mohamed Mursi's decision to assume sweeping powers caused fury amongst his opponents and prompted violent clashes in central Cairo and other cities on Friday.

Police fired tear gas near Cairo's Tahrir Square, heart of the 2011 uprising that toppled Hosni Mubarak, where thousands demanded Mursi quit and accused him of launching a "coup". There were violent protests in Alexandria, Port Said and Suez.

Opponents accused Mursi, who has issued a decree that puts his decisions above legal challenge until a new parliament is elected, of being the new Mubarak and hijacking the revolution.

"The people want to bring down the regime," shouted protesters in Tahrir, echoing a chant used in the uprising that forced Mubarak to step down. "Get out, Mursi," they chanted, along with "Mubarak tell Mursi, jail comes after the throne."

Mursi's aides said the presidential decree was intended to speed up a protracted transition that has been hindered by legal obstacles but Mursi's rivals condemned him as an autocratic pharaoh who wanted to impose his Islamist vision on Egypt.

"I am for all Egyptians. I will not be biased against any son of Egypt," Mursi said on a stage outside the presidential palace, adding that he was working for social and economic stability and the rotation of power.

"Opposition in Egypt does not worry me, but it has to be real and strong," he said, seeking to placate his critics and telling Egyptians that he was committed to the revolution. "Go forward, always forward ... to a new Egypt."

Buoyed by accolades from around the world for mediating a truce between Hamas and Israel in the Gaza Strip, Mursi on Thursday ordered that an Islamist-dominated assembly writing the new constitution could not be dissolved by legal challenges.

"Mursi a 'temporary' dictator," was the headline in the independent daily Al-Masry Al-Youm.

Mursi, an Islamist whose roots are in the Muslim Brotherhood, also gave himself wide powers that allowed him to sack the unpopular general prosecutor and opened the door for a retrial for Mubarak and his aides.

The president's decree aimed to end the logjam and push Egypt, the Arab world's most populous nation, more quickly along its democratic path, the presidential spokesman said.

"President Mursi said we must go out of the bottleneck without breaking the bottle," Yasser Ali told Reuters.

TURBULENCE AND TURMOIL

The president's decree said any decrees he issued while no parliament sat could not be challenged, moves that consolidated his power but look set to polarize Egypt further, threatening more turbulence in a nation at the heart of the Arab Spring.

The turmoil has weighed heavily on Egypt's faltering economy that was thrown a lifeline this week when a preliminary deal was reached with the International Monetary Fund for a $4.8 billion loan. But it also means unpopular economic measures.

In Alexandria, north of Cairo, protesters ransacked an office of the Brotherhood's political party, burning books and chairs in the street. Supporters of Mursi and opponents clashed elsewhere in the city, leaving 12 injured.

A party building was also attacked by stone-throwing protesters in Port Said, and demonstrators in Suez threw petrol bombs that burned banners outside the party building.

Mursi's decree is bound to worry Western allies, particularly the United States, a generous benefactor to Egypt's army, which praised Egypt for its part in bringing Israelis and Palestinians to a ceasefire on Wednesday.

The West may become concerned about measures that, for example, undermine judicial independence. The European Union urged Mursi to respect the democratic process.

"We are very concerned about the possible huge ramifications of this declaration on human rights and the rule of law in Egypt," Rupert Colville, spokesman for the U.N. Human Rights Commissioner Navi Pillay, said at the United Nations in Geneva.

The United States has been concerned about the fate of what was once a close ally under Mubarak, who preserved Egypt's 1979 peace treaty with Israel. The Gaza deal has reassured Washington but the deepening polarization of the nation will be a worry.

"ANOTHER DICTATOR"

"The decree is basically a coup on state institutions and the rule of law that is likely to undermine the revolution and the transition to democracy," said Mervat Ahmed, an independent activist in Tahrir protesting against the decree. "I worry Mursi will be another dictator like the one before him."

Leading liberal Mohamed ElBaradei, who joined other politicians on Thursday night to demand the decree was withdrawn, wrote on his Twitter account that Mursi had "usurped all state powers and appointed himself Egypt's new pharaoh".

Almost two years after Mubarak was toppled and about five months since Mursi took office, propelled to the post by the Muslim Brotherhood, Egypt has no permanent constitution, which must be in place before new parliamentary elections are held.

The last parliament, which sat for the first time earlier this year, was dissolved after a court declared it void. It was dominated by the Brotherhood's political party.

An assembly drawing up the constitution has yet to complete its work. Many liberals, Christians and others have walked out accusing the Islamists who dominate it of ignoring their voices over the extent that Islam should be enshrined in the new state.

Opponents call for the assembly to be scrapped and remade. Mursi's decree protects the existing one and extends the deadline for drafting a document by two months, pushing it back to February, further delaying a new parliamentary election.

Explaining the rationale behind the moves, the presidential spokesman said: "This means ending the period of constitutional instability to arrive at a state with a written constitution, an elected president and parliament."

"THIS IS NOT THE REMEDY"

Analyst Seif El Din Abdel Fatah said the decree targeted the judiciary which had reversed, for example, an earlier Mursi decision to remove the prosecutor.

Mursi, who is now protected by his new decree from judicial reversals, said the judiciary contained honorable men but said he would uncover corrupt elements. He also said he would ensure independence for the judicial, executive and legislative powers.

Although many of Mursi's opponents also opposed the sacked prosecutor, whom they blamed for shortcomings in prosecuting Mubarak and his aides, and also want judicial reform, they say a draconian presidential decree was not the way to do it.

"There was a disease but this is not the remedy," said Hassan Nafaa, a liberal-minded political science professor and activist at Cairo University.

(Additional reporting by Tom Miles in Geneva and Sebastian Moffett in Brussels; Writing by Edmund Blair; Editing by Peter Millership and Giles Elgood)

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EU's trillion euro budget summit ends in failure

BRUSSELS: Talks on the European Union's trillion euro budget ended in deadlock Friday when leaders of the 27-nation bloc failed to overcome seemingly irreconcilable differences on spending.

EU President Herman Van Rompuy insisted however that progress had been made in the two days of bitter bargaining. He forecast that a deal would be made when leaders meet again next year.

Tensions between rich and poor states over funding for economic development and Britain's strident demands for cuts in the mammoth budget -- covering seven years from 2014 to 2020 -- had set the summit on a rocky course from the start.

Britain was cast as the chief spoiler, with Prime Minister David Cameron arriving with a threat to wield his veto unless spending was frozen in real terms. He argued that in times of economic crisis, the EU too must make deep cuts.

But Cameron said as leaders went home without a deal that his country was not alone in seeking to reduce EU spending.

"The deal on the table was not one I was prepared to accept, nor were a number of other countries," he said of talks that a former European premier described as "like a Turkish bazaar".

The last time the EU had to agree on seven-year budget negotiations was in 2005, when it took six months and a failed summit during which Britain deployed its veto.

Nearly a year after angering his European counterparts by vetoing a pact to resolve the eurozone crisis, Cameron irritated many by demanding cuts to perks enjoyed by so-called "eurocrats" -- the well-paid EU civil servants frequently lampooned by the British press.

He failed to get them.

"The (European) Commission did not offer a single euro in savings (on perks) and I just don't think that was good enough," he said.

British, Swedes, Dutch made 'virulent' demands for cuts

An EU diplomat said the main obstacle at the summit was Cameron's demand for reductions in the planned trillion-dollar budget, with Sweden and The Netherlands the other "virulent" countries seeking cuts.

Cameron had vowed to bring down the budget from a proposed 1.047 trillion euros ($1.347 trillion) to 886 billion euros.

Van Rompuy submitted new proposals Friday to bring the budget to 972 billion euros, or just over one percent of the total economic output of the union that is home to 500 million people.

Those proposals aimed to meet demands to maintain so-called "cohesion" funds to help poorer nations and regions catch up with richer ones, as well as spending on the Common Agricultural Policy, the farm subsidy programme cherished by France that is the budget's biggest single item.

But that was not enough, and EU leaders threw in the towel.

As recriminations began to fly, a British source criticised a lack of preparation by Van Rompuy for the summit, saying it made negotiations more difficult.

French President Francois Hollande took a pop at Cameron, saying he had come to the summit with a "set priority" to protect the British rebate.

"I too could say that I want my discount," he said, adding that Britain was a smaller net contributor to the EU budget than France, which does not claim a rebate.

Britain has claimed that right since then prime minister Margaret Thatcher obtained one in 1984 on the grounds that London was paying too much into the bloc's coffers.

Chancellor Angela Merkel of Germany, which forks out by far the most money to keep the EU running, had been sceptical even before arriving in Brussels that a deal might be reached at the summit and played down the importance of failure.

She said Friday she was "satisfied" at the progress made and confident a deal would eventually be achieved.

-AFP/ac

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BJP, Congress to jointly table select committee report on Lokpal in Rajya Sabha

NEW DELHI: In an apparent show of unanimity, the report of the select committee on Lokpal Bill, which has recommended delinking creation of Lokayuktas in states from the central bill, is scheduled to be tabled in the Rajya Sabha on Friday by Congress and BJP.

According to the revised list of business of Rajya Sabha, leader of the opposition Arun Jaitley will table the report along with Shantaram Naik of Congress who is also the chairman of the department-related standing committee on law and personnel.

Usually, select committee report is tabled by its chairman. Satyavrat Chaturvedi is the chairman of the Rajya Sabha select committee on Lokpal.

After its passage in the Lok Sabha last year, the bill faced opposition hurdles in the Rajya Sabha on various provisions, following which it was referred to the select committee. The panel, which was to submit its report during the monsoon session, adopted it on November 19.

The Department of Personnel and Training, which piloted the bill, will have to approach the Union Cabinet on the recommendations made by the committee.

Once the bill is passed in the Rajya Sabha, it will travel back to the Lok Sabha for approval of the amended version.

Despite suggestions by the law ministry during depositions before the Committee suggesting 'insulation' to officials of the PMO, the committee, headed by Satyavrat Chaturvedi, has not recommended any changes.

The Prime Minister, who is sought to be covered by the proposed law, is, however, exempted from the ambit of Lokpal on issues of external and internal security, atomic energy, international relations and public order.

The select committee is learnt to have not recommended any change in the provision relating to "reservation".

The original provision said 'not less than 50 per cent of the members of Lokpal would be from SC, ST, OBC, minorities and women.

The committee's report said "these provisions merely aim at providing representation to the diverse sections of the society in the institution of Lokpal..."and only indicates "the quantum of representation and not reservation".

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Study finds mammograms lead to unneeded treatment

Mammograms have done surprisingly little to catch deadly breast cancers before they spread, a big U.S. study finds. At the same time, more than a million women have been treated for cancers that never would have threatened their lives, researchers estimate.

Up to one-third of breast cancers, or 50,000 to 70,000 cases a year, don't need treatment, the study suggests.

It's the most detailed look yet at overtreatment of breast cancer, and it adds fresh evidence that screening is not as helpful as many women believe. Mammograms are still worthwhile, because they do catch some deadly cancers and save lives, doctors stress. And some of them disagree with conclusions the new study reached.

But it spotlights a reality that is tough for many Americans to accept: Some abnormalities that doctors call "cancer" are not a health threat or truly malignant. There is no good way to tell which ones are, so many women wind up getting treatments like surgery and chemotherapy that they don't really need.

Men have heard a similar message about PSA tests to screen for slow-growing prostate cancer, but it's relatively new to the debate over breast cancer screening.

"We're coming to learn that some cancers — many cancers, depending on the organ — weren't destined to cause death," said Dr. Barnett Kramer, a National Cancer Institute screening expert. However, "once a woman is diagnosed, it's hard to say treatment is not necessary."

He had no role in the study, which was led by Dr. H. Gilbert Welch of Dartmouth Medical School and Dr. Archie Bleyer of St. Charles Health System and Oregon Health & Science University. Results are in Thursday's New England Journal of Medicine.

Breast cancer is the leading type of cancer and cause of cancer deaths in women worldwide. Nearly 1.4 million new cases are diagnosed each year. Other countries screen less aggressively than the U.S. does. In Britain, for example, mammograms are usually offered only every three years and a recent review there found similar signs of overtreatment.

The dogma has been that screening finds cancer early, when it's most curable. But screening is only worthwhile if it finds cancers destined to cause death, and if treating them early improves survival versus treating when or if they cause symptoms.

Mammograms also are an imperfect screening tool — they often give false alarms, spurring biopsies and other tests that ultimately show no cancer was present. The new study looks at a different risk: Overdiagnosis, or finding cancer that is present but does not need treatment.

Researchers used federal surveys on mammography and cancer registry statistics from 1976 through 2008 to track how many cancers were found early, while still confined to the breast, versus later, when they had spread to lymph nodes or more widely.

The scientists assumed that the actual amount of disease — how many true cases exist — did not change or grew only a little during those three decades. Yet they found a big difference in the number and stage of cases discovered over time, as mammograms came into wide use.

Mammograms more than doubled the number of early-stage cancers detected — from 112 to 234 cases per 100,000 women. But late-stage cancers dropped just 8 percent, from 102 to 94 cases per 100,000 women.

The imbalance suggests a lot of overdiagnosis from mammograms, which now account for 60 percent of cases that are found, Bleyer said. If screening were working, there should be one less patient diagnosed with late-stage cancer for every additional patient whose cancer was found at an earlier stage, he explained.

"Instead, we're diagnosing a lot of something else — not cancer" in that early stage, Bleyer said. "And the worst cancer is still going on, just like it always was."

Researchers also looked at death rates for breast cancer, which declined 28 percent during that time in women 40 and older — the group targeted for screening. Mortality dropped even more — 41 percent — in women under 40, who presumably were not getting mammograms.

"We are left to conclude, as others have, that the good news in breast cancer — decreasing mortality — must largely be the result of improved treatment, not screening," the authors write.

The study was paid for by the study authors' universities.

"This study is important because what it really highlights is that the biology of the cancer is what we need to understand" in order to know which ones to treat and how, said Dr. Julia A. Smith, director of breast cancer screening at NYU Langone Medical Center in New York. Doctors already are debating whether DCIS, a type of early tumor confined to a milk duct, should even be called cancer, she said.

Another expert, Dr. Linda Vahdat, director of the breast cancer research program at Weill Cornell Medical College in New York, said the study's leaders made many assumptions to reach a conclusion about overdiagnosis that "may or may not be correct."

"I don't think it will change how we view screening mammography," she said.

A government-appointed task force that gives screening advice calls for mammograms every other year starting at age 50 and stopping at 75. The American Cancer Society recommends them every year starting at age 40.

Dr. Len Lichtenfeld, the cancer society's deputy chief medical officer, said the study should not be taken as "a referendum on mammography," and noted that other high-quality studies have affirmed its value. Still, he said overdiagnosis is a problem, and it's not possible to tell an individual woman whether her cancer needs treated.

"Our technology has brought us to the place where we can find a lot of cancer. Our science has to bring us to the point where we can define what treatment people really need," he said.

___

Online:

Study: http://www.nejm.org/doi/full/10.1056/NEJMoa1206809

Screening advice: http://www.uspreventiveservicestaskforce.org/uspstf/uspsbrca.htm

___

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

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Black Friday Deals Kick Off on 'Gray Thursday'

Black Friday is the Super Bowl of retail, but some of the nation's largest big-box stores can't wait until the day after Thanksgiving to open their doors to shoppers eager to grab great deals the same day as their turkey dinner.

Traditional Black Friday door-busting deals now start tonight, on what's been dubbed Gray Thursday. Major retail stores such as Kmart, Toys R Us, Walmart and Sears will open their doors beginning at 8 p.m. Target will join the party an hour later.

"It's traditionally been the day after Thanksgiving when the stores go into the black, where they make all their money. But that's not true anymore," retail expert Michelle Madhock said.

With Black Friday sales starting Thursday, that means lines started forming Wednesday, or in some extreme cases a week before as bargain hunters tried to get a turkey leg up on their competition.

4 Steps to Get the Best Holiday Shopping Deals Watch Video

Top Tips for Thanksgiving Day Door-Buster Deals Watch Video

Luciana Pendleton pitched a tent outside a Deptford Township, N.J., Best Buy Monday fully equipped with all she needed to spend the next few days away from home so she could be first in line when the doors open.

"I am just happy I beat my competition. They pulled up here around 3 p.m., and we were already here so I was happy," she said Monday.

Last year, some sale seekers became a little too excited and turned holiday shopping into a contact sport. In one ugly incident, a woman was accused of unleashing pepper spray on other shoppers in a dash for electronics at Walmart in Los Angeles.

This year, stores are beefing up security, and Best Buy even participated in training drills to handle the large crowds. More than 147 million people plan to shop this weekend, according to the National Retail Federation.

The hottest deals that are up for grabs this year include a 46-inch Samsung LED flat screen TV at Walmart with $200 off the original price. If that's not good enough, Sears has knocked $500 off the price of a 50-inch Toshiba flat screen. Target is offering the Nook Simple Touch at half price.

Black Friday officially kicks off at midnight for Best Buy, Sports Authority and Macy's.

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Gaza ceasefire holds but mistrust runs deep

GAZA/JERUSALEM (Reuters) - A ceasefire between Israel and Hamas held firm on Thursday with scenes of joy among the ruins in Gaza over what Palestinians hailed as a victory, and both sides saying their fingers were still on the trigger.

In the sudden calm, Palestinians who had been under Israeli bombs for eight days poured into Gaza streets for a celebratory rally, walking past wrecked houses and government buildings.

But as a precaution, schools stayed closed in southern Israel, where nerves were jangled by warning sirens - a false alarm, the army said - after a constant rain of rockets during the most serious Israeli-Palestinian fighting in four years.

Israel had launched its strikes last week with a declared aim of ending rocket attacks on its territory from Gaza, ruled by the Islamist militant group Hamas, which denies Israel's right to exist. Hamas had responded with more rockets.

The truce brokered by Egypt's new Islamist leaders, working with the United States, headed off an Israeli invasion of Gaza.

It was the fruit of intensive diplomacy spurred by U.S. President Barack Obama, who sent his secretary of state to Cairo and backed her up with phone calls to Israeli Prime Minister Benjamin Netanyahu and Egyptian President Mohamed Mursi.

Mursi's role in cajoling his Islamist soulmates in Gaza into the U.S.-backed deal with Israel suggested that Washington can find ways to cooperate with the Muslim Brotherhood leader whom Egyptians elected after toppling former U.S. ally Hosni Mubarak, a bulwark of American policy in the Middle East for 30 years.

Mursi, preoccupied with Egypt's economic crisis, cannot afford to tamper with a 1979 peace treaty with Israel, despite its unpopularity with Egyptians, and needs U.S. financial aid.

MORE DEATHS

Despite the quiet on the battlefield, the death toll from the Gaza conflict crept up on both sides.

The body of Mohammed al-Dalu, 25, was recovered from the rubble of a house where nine of his relatives - four children and five women - were killed by an Israeli bomb this week.

That raised to 163 the number of Palestinians killed, more than half of them civilians, including 37 children, during the Israeli onslaught, according to Gaza medical officials.

Nearly 1,400 rockets struck Israel, killing four civilians and two soldiers, including an officer who died on Thursday of wounds sustained the day before, the Israeli army said.

Israel dropped 1,000 times as much explosive on the Gaza Strip as landed on its soil, Defense Minister Ehud Barak said.

Municipal workers in Gaza began cleaning streets and removing the rubble of bombed buildings. Stores opened and people flocked to markets to buy food.

Jubilant crowds celebrated, with most people waving green Hamas flags but some carrying the yellow emblems of the rival Fatah group, led by Western-backed President Mahmoud Abbas.

That marked a rare show of unity five years after Hamas, which won a Palestinian poll in 2006, forcibly wrested Gaza from Fatah, still dominant in the Israeli-occupied West Bank.

Israel began ferrying tanks northwards, away from the border, on transporters. It plans to discharge gradually tens of thousands of reservists called up for a possible Gaza invasion.

But trust between Israel and Hamas remains in short supply and both said they might well have to fight again.

"The battle with the enemy has not ended yet," Abu Ubaida, spokesman of Hamas's armed wing Izz el-Deen Al-Qassam Brigades, said at an event to mourn its acting military chief Ahmed al-Jaabari, whose killing by Israel on November 14 set off this round.

"HANDS ON TRIGGER"

The exiled leader of Hamas, Khaled Meshaal, said in Cairo his Islamist movement would respect the truce, but warned that if Israel violated it "our hands are on the trigger".

Netanyahu said he had agreed to "exhaust this opportunity for an extended truce", but told Israelis a tougher approach might be required in the future.

Facing a national election in two months, he swiftly came under fire from opposition politicians who had rallied to his side during the fighting but now contend he emerged from the conflict with no real gains for Israel.

"You don't settle with terrorism, you defeat it. And unfortunately, a decisive victory has not been achieved and we did not recharge our deterrence," Shaul Mofaz, leader of the main opposition Kadima party, wrote on his Facebook page.

In a speech, Ismail Haniyeh, Hamas's prime minister in Gaza, urged all Palestinian factions to respect the ceasefire and said his government and security services would monitor compliance.

According to a text of the agreement seen by Reuters, both sides should halt all hostilities, with Israel desisting from incursions and targeting of individuals, while all Palestinian factions should cease rocket fire and cross-border attacks.

The deal also provides for easing Israeli curbs on Gaza's residents, but the two sides disagreed on what this meant.

Israeli sources said Israel would not lift a blockade of the enclave it enforced after Hamas won a Palestinian election in 2006, but Meshaal said the deal covered the opening of all of the territory's border crossings with Israel and Egypt.

Israel let dozens of trucks carry supplies into the Palestinian enclave during the fighting. Residents there have long complained that Israeli restrictions blight their economy.

Barak said Hamas, which declared November 22 a national holiday to mark its "victory", had suffered heavy military blows.

"A large part of the mid-range rockets were destroyed. Hamas managed to hit Israel's built-up areas with around a metric tone of explosives, and Gaza targets got around 1,000 metric tonnes," he said.

He dismissed a ceasefire text published by Hamas, saying: "The right to self-defense trumps any piece of paper."

He appeared to confirm, however, a Hamas claim that the Israelis would no longer enforce a no-go zone on the Gaza side of the frontier that the army says has prevented Hamas raids.

(Additional reporting by Noah Browning in Gaza, Ori Lewis, Crispian Balmer and Dan Williams in Jerusalem; Writing by Jeffrey Heller and Alistair Lyon; Editing by Giles Elgood)

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Britain defiant in trillion-euro EU budget battle

BRUSSELS: France and Germany called for compromise Thursday at an EU summit on the bloc's hotly disputed trillion-euro budget, after British Prime Minister David Cameron turned up in Brussels threatening to wield his veto.

"I have come to seek a compromise, not to set an ultimatum," said French President Francois Hollande, adding that "Europe is a compromise" and that no country "can come seeking what it spent, otherwise there is no more Europe."

Minutes earlier, German Chancellor Angela Merkel also called for compromise but admitted that a deal between the bloc's 27 member states might be hard to achieve in the two-day summit aimed at reaching an agreement on the 2014-2020 budget.

The two leaders were speaking to reporters ahead of individual "confessionals" held by EU president Herman Van Rompuy with all 27 leaders before the summit officially opened.

Several countries led by Britain are seeking huge cuts in the trillion-euro budget to match austerity programmes at home, but Hollande has rejected proposals to cut spending on the Common Agricultural Policy (CAP), the largest item on the budget.

France is the biggest recipient of CAP funds.

Britain was the potential chief spoiler at the summit, with Cameron threatening to wield his veto unless spending is frozen in real terms for the union that is home to 500 million people and which forms the world's biggest trading bloc.

"No, I'm not happy at all... Clearly at a time when we are making difficult decisions at home over public spending, it would be quite wrong... for there to be proposals for this increased extra spending in the EU," he told reporters.

But an EU diplomat said Cameron, who is under constant pressure from eurosceptics in his Tory party to battle supposed European meddling and bureaucracy, was prepared to accept a 940-billion-euro spending ceiling.

He had initially vowed to settle only for a real-terms freeze from 2011 levels -- which Britain believes would be equivalent to 886 billion euros -- but could still claim he had won a budget cut if the new plan proceeds.

EU net contributor nations -- Austria, Britain, Denmark, France, Finland, Germany, Netherlands and Sweden -- have banded together to demand spending cuts, but are far from being on the same page regarding what should be cut or by how much.

Swedish Prime Minister Fredrik Reinfeldt stuck to his guns as he arrived for his meeting with Van Rompuy, telling reporters: "We want the overall level to come down and we want a more modern budget."

Much of Europe is in or close to recession and austerity-driven nations are demanding huge cuts in EU spending to match belt-tightening at home.

So-called Cohesion Funds -- billions of euros outlayed each year to the EU's newer and poorer entrants in the south and east of the continent so they can catch up with richer neighbours -- are central to the battle at the Brussels summit.

The funds will be defended tooth and nail by the 15 "Friends of Cohesion" nations -- led by Poland and Portugal -- who are net beneficiaries of the EU budget.

"Cohesion is an issue of competitiveness and growth for the whole European Union, not just for the countries with the greatest needs," argued Prime Minister Antonis Samaras of debt-stricken Greece.

The cohesion funds are the second-biggest budget item after CAP payments to farmers and fishermen, which are another bone of contention.

France is by far the biggest CAP beneficiary, and Hollande vowed to fight to keep the prized agricultural subsidies, while denying he was purely defending national interests.

Earlier this week he lashed out at countries which defended budget rebates, the third hot-button issue at the summit.

He did not name any specific countries, but Britain in particular cherishes its budget rebate, which then prime minister Margaret Thatcher obtained in 1984 on the grounds that London was paying too much into the bloc's coffers.

The British rebate was worth 3.6 billion euros last year, and Cameron vowed Thursday that he had no plans to give it up. Germany, the Netherlands, Sweden and Austria are insistent on keeping their rebates.

The sense of summit crisis was heightened by the failure on Wednesday at a eurozone finance ministers' meeting to unblock bailout funds needed to keep Greece from bankruptcy.

-AFP/ac

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