No deal yet as US teeters on fiscal cliff edge

WASHINGTON: As the United States teeters on the edge of the fiscal cliff, politicians had yet to agree on Monday on a New Year's Eve escape route to prevent taxes from rising on all Americans on January 1.

Despite several sticking points, the framework of a possible deal was emerging after midnight talks between top Senate Republican Mitch McConnell and Vice President Joe Biden, a Democrat with whom he has a close rapport.

With time running out to avert $500 billion in tax hikes and spending cuts set to kick in within hours, the White House announced that President Barack Obama was to speak on the looming "fiscal cliff" at 1:30 pm (1830 GMT).

Even if the Democratically-controlled Senate does sign off on a deal Monday, avoiding the cliff could go down to the wire.

The bill must then go to the Republican-held House of Representatives. The chamber is in session on Monday, but House Speaker John Boehner has struggled to control his party's restive conservative wing, many of whom may balk at signing on to any Obama-approved deal that raises taxes.

The key areas of friction are the income threshold at which taxes should rise, Obama's insistence on extending unemployment benefits and Republican demands for increased federal spending cuts.

"There are a number of issues on which the two sides are still apart," Democratic Senate Majority Harry Reid conceded. "Negotiations are continuing as I speak, but we really are running out of time.

"Whether or not we reach an agreement in the short time we have left, we'll need cooperation on both sides to prevent taxes from going up tomorrow for every family in America."

Days of last-gasp talks have produced no deal between US political leaders struggling for a compromise to head off a fiscal crisis that could roil global markets and plunge the United States back into a punishing recession.

Asian stocks were flat Monday while Europe was mixed, as markets nervously digested the Washington gridlock.

Disagreement has simmered over the threshold at which taxes would rise in any new deal.

Obama campaigned for re-election vowing to raise taxes on households with a combined income above $250,000, but in an 11th-hour concession has agreed to negotiate a higher rate - as much as $450,000 - to the chagrin of some his own Democrats.

Some reports said Republican leaders were still seeking $550,000 as the cut-off point.

Republicans have dropped their demand for a new way of calculating inflation that would have cut the level of benefits for Social Security recipients.

But they were reportedly maintaining their insistence that estate inheritance tax rates stay at current levels.

The two sides remained bitterly at odds over the $109 billion in automatic spending cuts set to hit the Pentagon as well as other federal agencies beginning in early January.

Democrats said they were pushing for a delay of the cuts, known as the "sequester," for about two years, while some Republicans, including Senator Roy Blunt, said it was inconceivable to allow a delay without imposing more targeted offsets to pay for such a postponement.

Don Stewart, McConnell's spokesman, said in a statement on Monday morning that the Republican leader and Biden had talked long into the night to try to hammer out a deal.

Democratic congressman Chris Van Hollen said there was better than a 50-50 chance of a pre-midnight agreement, but his Republican rivals were a question mark.

"One big question of course is whether an agreement put together by the senators on a bipartisan basis, whether that can pass the House of Representatives," he told CNN.

Republicans largely oppose raising taxes on anyone. There may be a push by conservatives to let the economy slide off the cliff so that taxes rise on all Americans, only for lawmakers to quickly turn around and vote for a tax cut on the middle class.

- AFP/de

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Haryana khap opposes death penalty for rapists

HISAR: Opposing the demand for death penalty for rapists, a khap in Haryana on Sunday said no law should be introduced in a hurry which can be misused.

Speaking at a village here, khap leader Sube Singh said that the authorities should not be carried away by emotions in the wake of the public protests over the gang rape issue and demand for death penalty for rapists.

"We have seen the anti-dowry and the SC/ST laws being misused. Any new law which gives such harsh punishment would also be vulnerable to misuse," Singh said.

The influential khaps or caste panchayats have in the past drawn flak for opposing marriages in the same sect and their diktats on moral policing.

The statement by the khap leader raised hackles of activists who said it was an attempt to shield the rapists in Haryana.

"Twenty gangrapes took place in Haryana in which several people are involved. This is a plot to save them. This atmosphere forces them to ... disrespect among women," Jagmati Sangwan, general secretary of the All-India Democratic Women's Association, said.

The controversy comes in the midst of national outrage over the brutal gangrape of a 23-year-old in Delhi who died on Friday night.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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President Suggests Small 'Cliff' Deal Likely

With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called “fiscal cliff,” President Obama today suggested that a small deal remains the best hope to avoid the perilous package of spending cuts and tax increases.

In an interview aired this morning on NBC’s “Meet the Press” the president said if Republicans agreed to raising taxes on top income earners it should be enough to avoid the triggers that would execute the $607 billion measure. Economists agree that going over the cliff would likely put the country back in recession.

“If we have raised some revenue by the wealthy paying a little bit more, that would be sufficient to turn off what’s called the sequester, these automatic spending cuts, and that also would have a better outcome for our economy long-term,” he said.

Saying the “pressure is on Congress to produce,” the president did not specify what income level his party would deem acceptable as the cutoff for those who would see their tax rates remain at current levels. The president has called for expiration of the “Bush-era” tax cuts to affect household earnings over $250,000 since the campaign, but has reportedly floated a $400,000 figure in past negotiations. Speaker John Boehner once offered a $1 million cut-off in his failed “Plan B” proposal, which failed to garner enough support among the House Republicans.

“It’s been very hard for Speaker Boehner and Republican Leader McConnell  to accept the fact that taxes on the wealthiest Americans should go up a little bit as part of an overall deficit reduction package,” the president said.

Domestic programs would lose $55 billion in funding should sequestration pass, including $2 billion to Medicare and unemployment benefits. The Pentagon would take a $55 billion loss as well, or 9 percent of their budget.

Repeating remarks he made Friday after a meeting with congressional leaders, Obama said that should negotiations fail he has asked Senate Majority Leader Harry Reid, D-Nev., to introduce a stripped- down proposal to Congress for a straight up-or-down vote – if it isn’t blocked.

“If all else fails, if Republicans do in fact decide to block so that taxes on the middle class do in fact go up on January 1, then we’ll come back with a new Congress on January 4, and the first bill that will be introduced on the floor will be to cut taxes on middle-class families,” he said of the worst case scenario. “I don’t think the average person is going to say, ‘Gosh, you know, that’s a really partisan agenda.’”

The interview was taped Saturday while Reid and his GOP counterpart Sen. Mitch McConnell of Kentucky scrambled to their offices for a solution behind closed doors. Press staking out Capitol Hill reported little public activity from the leaders or their surrogates. If negotiations are successful, the lawmakers could introduce a bill for vote this afternoon.

Republican leaders bit back at the president’s remarks. In a written statement Speaker Boehner said casting blame was “ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party. ”

“In an effort to get the president to agree to cut spending – which is the problem – I put revenues on the table last year, and I put them on the table again last month,” he wrote. “Republicans made every effort to reach the ‘balanced’ deficit agreement that the president promised the American people, while the president has continued to insist on a package skewed dramatically in favor of higher taxes that would destroy jobs.”

Senator McConnell’s office issued this response to the NBC appearance:

“While the President was taping those discordant remarks yesterday, Sen. McConnell was in the office working to bring Republicans and Democrats together on a solution. Discussions continue today.”

Regardless of outcome, talk of a comprehensive budget deal is gone and any bill would likely set up a series of smaller partisan roadblocks in the weeks and months to come. For example, if any hypothetical legislation managed to dodge tax increases for the middle class it may still not address the looming debt ceiling, which Treasury can avoid using accounting tricks for approximately two months.

A small deal may also not address the estate tax, another central point of the brinkmanship. Currently standing at 35 percent, Republicans want to leave that rate as-is after exempting the first $5 million in estate value. Meanwhile Democrats have called for a 45 percent tax after a $3.5 million exemption. Should negotiations fail, it would climb to 55 percent after a $1 million exemption after the New Year.

ABC’s Sunlen Miller and the Associated Press contributed to this report, which has been updated.

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Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

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Israel must complete peace deal with Abbas: Peres

JERUSALEM: Israeli President Shimon Peres on Sunday urged Israel to resume peace talks with the Palestinians, saying their president Mahmud Abbas was a willing partner with whom an agreement could be reached.

Speaking with Israeli diplomats at his Jerusalem residence, Peres said the only way the Jewish state could positively affect the fluctuating reality in the region was "to complete the peace agreement with the Palestinians."

"I know there are different opinions," he said. "This is not a matter of ideology, this is a matter of appraising" the situation.

"I have known Abu Mazen for 30 years, and nobody will change my opinion of him," Peres continued, using Abbas's nom de guerre.

"I know there is criticism of things Abu Mazen said," Peres continued, but "there is currently no other Arab leader who is saying he is in favour of peace, against terror, in favour of a demilitarised state, and of... the Palestinian consensual right of return."

"There is not much time left," he warned.

Talks between the Israel and the Palestinians have been on hold since September 2010, with the Palestinians insisting on a settlement freeze before returning to the negotiating table and the Israelis insisting on no preconditions.

Following last month's historic United Nations vote giving the Palestinians upgraded status in the world body, Israel announced a new spate of settlement building in the West Bank and Israeli-annexed east Jerusalem.

Peres's remarks elicited a harsh response from Prime Minister Benjamin Netanyahu's Likud party, which is contesting January 22 elections on a joint list with ex-foreign minister Avigdor Lieberman's ultra-nationalist Yisrael Beitenu party.

"It is very saddening that the president chose to express a personal political opinion that is contrary to the Israeli public's stance on Abu Mazen, the peace refuser," a statement from the party read.

"The prime minister has called on Abu Mazen to return to the negotiating table dozens of times," it read, saying the Palestinian leader "prefers to join forces with Hamas and act against Israel in every possible sphere."

Netanyahu himself, however, softened his party's line a few hours later.

"I respect the president, I value him," he told Channel 2 television. "There is a variety of opinions, we exchange opinions on topics on the agenda."

Lieberman, who resigned as Israel's top diplomat earlier this month, following indictments on fraud and breach of trust, has consistently said Abbas is not interested in reaching a peace deal with Israel.

He has also described Abbas as an obstacle to negotiations, suggesting it would be better for the president to step down.

- AFP/jc

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Contingency fund increased to tackle drought in Maharashtra

MUMBAI: Maharashtra government approved a hike of Rs 400 crore on Friday in the state contingency fund for overcoming water and fodder scarcity in various areas.

At present, the fund is capped at Rs 150 crore; the state cabinet today approved a rise to Rs 550 crore.

The increase was a temporary measure for drought relief, officials said. The funds will be used for drinking water supply through tankers, cattle camps, etc.

An ordinance will be issued because the budget session of the state legislature will be held only in March.

The state's proposed industrial policy was tabled before the cabinet today, but no discussion took place, sources said.

As per the draft policy, an investment of Rs five lakh crore and generation of 25 lakh employment opportunities is expected in the near future. The focus would be on boosting the industrial development in backward regions of Vidarbha and Marathwada.

These regions would get a subsidy of Rs one per unit for industrial electricity, apart from concessions regarding interest rate, amnesty scheme for sick units, etc.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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Did the Exodus of Moses Really Happen?

In the Bible, he is called Moses. In the Koran, he is the prophet Musa.

Religious scholars have long questioned whether of the story of a prophet leading God's chosen people in a great exodus out of Egypt and the freedom it brought them afterwards was real, but the similarities between a pharaoh's ancient hymn and a psalm of David might hold the link to his existence.

Tune in to Part 2 of Christiane Amanpour's ABC News special, "Back to the Beginning," which explores the history of the Bible from Genesis to Jesus, on Friday, Dec. 28 at 9 p.m. ET on ABC.

Christian scripture says Moses was content to grow old with his family in the vast deserted wilderness of Midian, and 40 years passed until the Bible says God spoke to him through the Burning Bush and told him to lead his people, the Israelites, out of Egypt. According to tradition, that miraculous bush can still be seen today enclosed within the ancient walls of St. Catherine's Monastery, located not far from Moses' hometown.

But there was another figure in the ancient world who gave up everything to answer the call from what he believed was the one and only true God.

Archaeologists discovered the remains of the ancient city of Amarna in the 1800s. Egyptologist Rawya Ismail, who has been studying the ruins for years, believes, as other archaeologists do, that Pharaoh Akhenaten built the city as a tribute to Aten, the sun.

Werner Forman/Universal Images Group/Getty Images

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She said it was a bold and unusual step for the pharaoh to leave the luxurious trappings of palace life in Luxor for the inhospitable landscape of Amarna, but it might have been his only choice as the priests from the existing religious establishment gained power.

"The very powerful Amun-Ra priests that he couldn't stand against gained control of the whole country," Ismail said. "The idea was to find a place that had never been used by any other gods -- to be virgin is what he called it -- so he chose this place."

All over the walls inside the city's beautiful tombs are examples of Akhanaten's radical message of monotheism. There is the Hymn to the Aten, which translates, in part, to: "The earth comes into being by your hand, as you made it. When you dawn, they live. When you set, they die. You yourself are lifetime, one lives by you."

PHOTOS: Christiane Amanpour's Journey 'Back to the Beginning'

Some attribute the writing of the hymn to Akhanaten himself, but it bears a striking resemblance to a passage that can be found in the Hebrew Bible: Psalm 104.

"If you compare the hymns from A to Z, you'll find mirror images to it in many of the holy books," Ismail said. "And if you compare certain parts of it, you'll find it almost exactly -- a typical translation for some of the [psalms] of David."

Psalm 104, written a few hundred years later, references a Lord that ruled over Israel and a passage compares him to the sun.

"You hide your face, they are troubled," part of it reads. "You take away your breath, they die, And return to dust. You send forth your breath, they are created, And you renew the face of the earth."

Like the psalm, the Hymn to Aten extols the virtues of the one true God.

"A lot of people think that [the Hymn to Aten] was the source of the [psalms] of David," Ismail said. "Putting Egypt on the trade route, a lot of people traveled from Egypt and came back to Egypt, it wasn't like a country living in isolation."

Ismail believes it is possible that the message from the heretic pharaoh has some connection to the story of Moses and the Exodus, as outlined in the Hebrew Bible.

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Syria opposition leader rejects Moscow invitation

ALEPPO PROVINCE, Syria/BEIRUT (Reuters) - Syria's opposition leader has rejected an invitation from Russia for peace talks, dealing another blow to international hopes that diplomacy can be resurrected to end a 21-month civil war.

Russia, President Bashar al-Assad's main international protector, said on Friday it had sent an invitation for a visit to Moaz Alkhatib, whose six-week-old National Coalition opposition group has been recognized by most Western and Arab states as the legitimate voice of the Syrian people.

But in an interview on Al Jazeera television, Alkhatib said he had already ruled out such a trip and wanted an apology from Moscow for its support for Assad.

"We have clearly said we will not go to Moscow. We could meet in an Arab country if there was a clear agenda," he said.

"Now we also want an apology from (Russian Foreign Minister Sergei) Lavrov because all this time he said that the people will decide their destiny, without foreign intervention. Russia is intervening and meanwhile all these massacres of the Syrian people have happened, treated as if they were a picnic."

"If we don't represent the Syrian people, why do they invite us?" Alkhatib said. "And if we do represent the Syrian people why doesn't Russia respond and issue a clear condemnation of the barbarity of the regime and make a clear call for Assad to step down? This is the basic condition for any negotiations."

With the rebels advancing steadily over the second half of 2012, diplomats have been searching for months for signs that Moscow's willingness to protect Assad is faltering.

So far Russia has stuck to its position that rebels must negotiate with Assad's government, which has ruled since his father seized power in a coup 42 years ago.

"I think a realistic and detailed assessment of the situation inside Syria will prompt reasonable opposition members to seek ways to start a political dialogue," Lavrov said on Friday.

That was immediately dismissed by the opposition: "The coalition is ready for political talks with anyone ... but it will not negotiate with the Assad regime," spokesman Walid al-Bunni told Reuters. "Everything can happen after the Assad regime and all its foundations have gone. After that we can sit down with all Syrians to set out the future."

BRAHIMI TO MOSCOW

Russia says it is behind the efforts of U.N. mediator Lakhdar Brahimi, fresh from a five-day trip to Damascus where he met Assad. Brahimi, due in Moscow for talks on Saturday, is touting a months-old peace plan for a transitional government.

That U.N. plan was long seen as a dead letter, foundering from the outset over the question of whether the transitional body would include Assad or his allies. Brahimi's predecessor, Kofi Annan, quit in frustration shortly after negotiating it.

But with rebels having seized control of large sections of the country in recent months, Russia and the United States have been working with Brahimi to resurrect the plan as the only internationally recognized diplomatic negotiating track.

Russia's Middle East envoy, Deputy Foreign Minister Mikhail Bogdanov, who announced the invitation to Alkhatib, said further talks were scheduled between the "three B's" - himself, Brahimi and U.S. Undersecretary of State William Burns.

Speaking in Damascus on Thursday, Brahimi called for a transitional government with "all the powers of the state", a phrase interpreted by the opposition as potentially signaling tolerance of Assad remaining in some ceremonial role.

But such a plan is anathema to the surging rebels, who now believe they can drive Assad out with a military victory, despite long being outgunned by his forces.

"We do not agree at all with Brahimi's initiative. We do not agree with anything Brahimi says," Colonel Abdel-Jabbar Oqaidi, who heads the rebels' military council in Aleppo province, told reporters at his headquarters there.

Oqaidi said the rebels want Assad and his allies tried in Syria for crimes. Assad himself says he will stay on and fight to the death if necessary.

In the rebel-held town of Kafranbel, demonstrators held up cartoons showing Brahimi speaking to a news conference with toilet bowls in front of him, in place of microphones. Banners denounced the U.N. envoy with obscenities in English.

DIPLOMATS IMPOTENT

Diplomacy has largely been irrelevant to the conflict so far, with Western states ruling out military intervention like the NATO bombing that helped topple Libya's Muammar Gaddafi last year, and Russia and China blocking U.N. action against Assad.

Meanwhile, the fighting has grown fiercer and more sectarian, with rebels mainly from the Sunni Muslim majority battling Assad's government and allied militia dominated by his Alawite sect, an offshoot of Shi'ite Islam.

Still, Western diplomats have repeatedly touted signs of a change in policy from Russia, which they hope could prove decisive, much as Moscow's withdrawal of support for Serbian leader Slobodan Milosevic heralded his downfall a decade ago.

Bogdanov said earlier this month that Assad's forces were losing ground and rebels might win the war, but Russia has since rowed back, with Lavrov last week reiterating Moscow's position that neither side could win through force.

Still, some Moscow-based analysts see the Kremlin coming to accept it must adapt to the possibility of rebel victory.

"As the situation changes on the battlefield, more incentives emerge for seeking a way to stop the military action and move to a phase of political regulation," said Dmitry Trenin, director of the Carnegie Moscow Center.

Meanwhile, on the ground the bloodshed that has killed some 44,000 people continues unabated. According to the pro-opposition Syrian Observatory for Human Rights, a monitoring group based in Britain, 150 people were killed on Thursday, a typical toll as fighting has escalated in recent months.

Government war planes bombarded the town of Assal al-Ward in the Qalamoun district of Damascus province for the first time, killing one person and wounding dozens, the observatory said.

In Aleppo, Syria's northern commercial hub, clashes took place between rebel fighters and army forces around an air force intelligence building in the Zahra quarter, a neighborhood that has been surrounded by rebels for weeks.

(Additional reporting by Omar Fahmy in Cairo, Dominic Evans in Beirut and Steve Gutterman and Alissa de Carbonnel in Moscow; Writing by Peter Graff; Editing by Giles Elgood)

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