US cliff deal to slow growth: economists

WASHINGTON: The political deal to pull the US away from the "fiscal cliff" will still hit economic growth and efforts to generate jobs, economists said Wednesday, but the country will avoid a feared recession.

Although not as severe as they could have been, Congress and the White House agreed tax increases on the country's wealthiest two per cent and higher paycheck deductions for all workers that will suck enough money out of the economy to significantly hold back growth in 2013, they said.

Moreover, politicians still face a battle over cutting federal spending -- put off for two months in the wrangling over the cliff deal finally passed Tuesday -- that could further crunch the economy this year.

That means more tepid expansion of gross domestic product this year, with equally slow job creation as in 2012, by most estimates.

"We are looking at growth of 1.7 per cent, somewhere around there," after around 2.0 per cent GDP growth in 2012, said Gregory Daco of IHS Global Insight.

But that is better than what could have been if Democrats and Republicans had failed to agree on legislation to avoid the much larger programmed tax hikes of the cliff, he said.

"If nothing had happened... we would have been in a recession."

The biggest impact will be an increase in how much employees see deducted from their paychecks for social security: after having been cut to stimulate growth in recent years, the rate goes back to 6.2 per cent from 4.2 per cent.

Daco estimated that will pull US$113 billion out of the economy -- money that mostly would have otherwise been spent on goods and services.

"That is the measure that is going to hit the most people," he told AFP -- by itself cutting 0.4 per cent from potential growth.

An increase in tax rates for Americans earning over US$400,000, to 39.6 per cent from 35 per cent, will not have as large an impact, he said: "A dollar for them is not the same as a dollar for someone earning US$50,000."

Economist Mark Zandi of Moody's Analytics said the tax increases and spending cuts still to be agreed will take about one percentage point from what could have been, had the 2012 tax rates and spending plans stayed in place.

"The result is that the US economy will grow just over 2 per cent in 2013, about the same as in 2012," Zandi said.

In addition, he added, it will hold back job creation, "with 700,000 fewer net new jobs created and an unemployment rate about half a percentage point higher than it would have been if last year's policy had simply been extended."

Gregory Michael of BMO Capital Markets said the impact would be larger -- cutting 1.4 per cent from potential GDP growth.

"Nearly half of this restraint reflects the increase in payroll taxes, one third represents the delayed automatic spending cuts and the remainder reflects all other measures including higher tax rates for those making more than US$400,000."

Economists said that despite the deal on tax hikes, the looming political fight over short- and long-term spending reduction will continue to worry businesses, which could continue to hold off on investment and hiring as they did in 2012.

"There's still a lot of uncertainty in the economy," said Daco. "Businesses are not yet in the full-confidence mode."

- AFP/jc

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FIR against BJP MP from Gujarat for slapping doctor on duty

AMRELI (GUJARAT): An FIR was lodged on Tuesday against Naran Kachadiya, a BJP MP from Amreli, for allegedly slapping a government doctor on duty and threatening to kill him, police said.

The incident took place on Tuesday morning at Amreli Civil Hospital here, where one of the relatives of Kachadiya is undergoing treatment, they said.

The victim, identified as Dr Bhimji Dabhi has lodged the FIR against the MP.

"A relative of Kachadiya is being treated at the trauma centre of the civil hospital here. After tending to the MP's relative, Dr Dabhi went to attend an emergency case," police said.

Since he was busy with the new patient, Dabhi declined to attend the MP's phone call stating that he was on duty, they added.

Angered by this, Kachadiya soon came to the hospital along with his 15 followers and slapped the doctor, police said, adding that he also gave him life threats.

However, when contacted, Kachadiya claimed that he neither slapped the doctor nor threatened him.

"There was a verbal altercation between me and the doctor, but allegations that I slapped him are false and I have neither given any threats to him," Kachadiya told PTI over phone.

The MP alleged that the doctors at the civil hospital were not giving proper medical treatment to poor patients.

"Poor people come to the Civil Hospital for treatment. However, people complained to me that doctors are not treating patients from 9am to 2pm," he said.

"When one of the women patients called me on my phone, I asked her to give the phone to doctor, who refused to talk saying he did not want to talk to any MLA or MP. I told the patient that I would reach the hospital in five minutes," he added.

"When I came to the hospital, I saw over 25 patients sitting in the lobby waiting to be treated. I met the doctor in his office and he said that he did not want to talk to me," Kachadiya said, adding that there was only an altercation between the two.

The doctor has filed an FIR against Kachadiya under relevant sections of the Indian Penal Code (IPC).

When asked why he did not file a cross-complaint against the doctor, the MP said, "I don't want to file a complaint against the doctor. I am a public representative".

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Clinton receiving blood thinners to dissolve clot

WASHINGTON (AP) — Secretary of State Hillary Rodham Clinton continues to recover in a New York hospital where she's being treated for a blood clot in her head.

Her doctors say blood thinners are being used to dissolve the clot and they are confident she will make a full recovery. Clinton didn't suffer a stroke or neurological damage from the clot that formed after she suffered a concussion during a fainting spell at her home in early December, doctors said in a statement Monday.

Clinton, 65, was admitted to New York-Presbyterian Hospital on Sunday when the clot turned up on a follow-up exam on the concussion, Clinton spokesman Phillipe Reines said. The clot is located in the vein in the space between the brain and the skull behind the right ear. She will be released once the medication dose for the blood thinners has been established, the doctors said.

In their statement, Dr. Lisa Bardack of the Mount Kisco Medical Group and Dr. Gigi El-Bayoumi of George Washington University said Clinton was making excellent progress and was in good spirits.

Clinton's complication "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said Dr. Larry Goldstein, a neurologist who is director of Duke University's stroke center. He is not involved in Clinton's care.

The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull. It's how the blood gets back to the heart," Goldstein said.

Blood thinners usually are enough to treat the clot and it should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, Goldstein said.

Clinton returned to the U.S. from a trip to Europe, then fell ill with a stomach virus in early December that left her severely dehydrated and forced her to cancel a trip to North Africa and the Middle East. Until then, she had canceled only two scheduled overseas trips, one to Europe after breaking her elbow in June 2009 and one to Asia after the February 2010 earthquake in Haiti.

Her condition worsened when she fainted, fell and suffered a concussion while at home alone in mid-December as she recovered from the virus.

This isn't the first time Clinton has suffered a blood clot. In 1998, midway through her husband's second term as president, Clinton was in New York fundraising for the midterm elections when a swollen right foot led her doctor to diagnose a clot in her knee requiring immediate treatment.

Clinton had planned to step down as secretary of state at the beginning of President Barack Obama's second term. Whether she will return to work before she resigns remains a question.

Democrats are privately if not publicly speculating: How might her illness affect a decision about running for president in 2016?

After decades in politics, Clinton says she plans to spend the next year resting. She has long insisted she had no intention of mounting a second campaign for the White House four years from now. But the door is not entirely closed, and she would almost certainly emerge as the Democrat to beat if she decided to give in to calls by Democratic fans and run again.

Her age — and thereby health — would probably be a factor under consideration, given that Clinton would be 69 when sworn in, if she were elected in 2016. That might become even more of an issue in the early jockeying for 2016 if what started as a bad stomach bug becomes a prolonged, public bout with more serious infirmity.

Not that Democrats are willing to talk openly about the political implications of a long illness, choosing to keep any discussions about her condition behind closed doors. Publicly, Democrats reject the notion that a blood clot could hinder her political prospects.

"Some of those concerns could be borderline sexist," said Basil Smikle, a Democratic strategist who worked for Clinton when she was a senator. "Dick Cheney had significant heart problems when he was vice president, and people joked about it. He took the time he needed to get better, and it wasn't a problem."

It isn't uncommon for presidential candidates' health — and age — to be an issue. Both in 2000 and 2008, Sen. John McCain, R-Ariz., had to rebut concerns he was too old to be commander in chief or that his skin cancer could resurface.

Beyond talk of future politics, Clinton's three-week absence from the State Department has raised eyebrows among some conservative commentators who questioned the seriousness of her ailment after she canceled planned Dec. 20 testimony before Congress on the deadly attack on the U.S. diplomatic mission in Benghazi, Libya.

Clinton had been due to discuss with lawmakers a scathing report she had commissioned on the attack. It found serious failures of leadership and management in two State Department bureaus were to blame for insufficient security at the facility. Clinton took responsibility for the incident before the report was released, but she was not blamed. Four officials cited in the report have either resigned or been reassigned.

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New School for Sandy Hook Duplicated to the Crayons

The students and staff of Sandy Hook Elementary School will return to school on Thursday for the first time since the shooting rampage that left 20 young students and six adults dead. The students will be in a new building where their old classrooms have been completely recreated.

Instead of returning to the halls of Sandy Hook Elementary School in Newtown, Conn., they will be going to the building that used to be the Chalk Hill Middle School in Monroe, about six miles away.

Sandy Hook school was shut since Adam Lanza carried out his massacre shortly before Christmas.

Since principal Dawn Hochsprung was one of the victims of the shooting, the school will be led by interim principal Donna Page. Page was the school's prior principal who retired in 2010.

"Please know the inspiration you and your children have been to my staff and me as we connect with you at Chalk Hill," Page wrote in a letter posted on the school's website. "Be assured that the towns of Monroe and Newtown are working night and day to ensure the facility is safe, secure, and fully operational for our return," Page wrote.

The school will host a walk-through for families on Wednesday and "Opening Day" will be Thursday.

"I want to reassure you that we understand many parents may need to be near their children on their first day(s) of school and you will be welcome," Page wrote.

Don Emmert/AFP/Getty Images

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The school is encouraging students to take the bus in order to help them return to familiar routines and said parents may come to the school's classrooms or auditorium throughout the day after the 9:07 a.m. opening. They are asking that no more than one adult family member accompany each child in order "to ensure a safe and secure environment."

In addition to a parental presence at the school, comfort dogs will be returning to brighten the day. Small armies of golden retrievers spread out all over Newtown in the days following the shooting to comfort mourners young and old.

Chicago's Lutheran Church Charities' K-9 Parish Comfort Dogs were in Newtown after the shooting and are traveling back to Connecticut today. Nine dogs and their handlers gathered at their building at 1 a.m. this morning to board a caravan of one RV and two vans heading to Connecticut.

"The community of Newtown will be going through the healing process for a very long time," the group wrote on their website. "The LCC K-9 Comfort dogs will be returning to Newtown...They will be there to greet children as they return to school."

The rest of the Newtown school district resumes classes on Wednesday.

Furniture and supplies from Sandy Hook were moved to Chalk Hill in order to recreate the classrooms just as they were.

Teachers photographed their classrooms at Sandy Hook in order to replicate everything about them, from the pictures on the walls to the crayons left on the students' desks. This is all part of an effort to make the students feel as comfortable as possible.

Workers completely retrofitted the former middle school to fit the needs of its young students, including tearing out bathrooms that were made for teenagers and rebuilding them for elementary-aged kids.

New security systems are being installed at Chalk Hill school, and Newtown Councilman Steve Vavrek told ABC News that the school will be "the safest school in America."

For a school that has gone through so much, moving forward does not mean forgetting.

"I want parents and families enduring the loss of their precious children to know their loved ones are foremost in our hearts and minds as we move forward," Page wrote. "Your strength and compassion has been, and will continue to be an inspiration to me and countless others as we work to honor the memory of your precious children and our beloved staff."

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About 60 crushed to death in Ivory Coast stampede

ABIDJAN (Reuters) - About 60 people were crushed to death in a stampede outside a stadium in Ivory Coast's main city of Abidjan after a New Year's Eve fireworks display, the government said on Tuesday.

The incident took place near Felix Houphouet Boigny Stadium where a crowd had gathered to watch fireworks, emergency officials said.

One of the injured, speaking to Reuters at a hospital, said security forces had arrived to break up the crowd, triggering a panic in which many people fell over and were trampled.

"The provisional death toll is 60 and there are 49 injured," Interior Minister Hamed Bakayoko said in a statement broadcast on national television.

President Alassane Ouattara, visiting injured people at the hospital, called the incident a national tragedy and said an investigation was underway to determine what happened.

A Reuters correspondent said blood stains and abandoned shoes littered the scene outside the stadium on Tuesday morning.

"My two children came here yesterday. I told them not to come but they didn't listen. They came when I was sleeping. What will I do?" said Assetou Toure, a cleaner.

She did not know if her children had escaped unhurt.

The incident was the worst of its kind in Abidjan since 2010, when a stampede at a stadium during a football match killed 18 people.

Ivory Coast, once a stable economic hub for West Africa, is struggling to recover from a 2011 civil war in which more than 3,000 people were killed.

(Reporting by Loucoumane Coulibaly and Alain Amontchi; Writing by Richard Valdmanis; Editing by Angus MacSwan)

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Tennis: Williams leads USA fightback

PERTH: Venus Williams lifted the United States to victory in their Hopman Cup tie against France on Tuesday.

The USA pairing of Williams and John Isner beat the French team of Jo-Wilfried Tsonga and Mathilde Johansson 2-1 to remain unbeaten in the mixed teams tournament, but only after a remarkable comeback led by Williams when the Americans twice appeared on the brink of defeat.

After Tsonga beat an out-of-form Isner in straight sets, Williams looked down and out when she dropped the first set to Johannson and trailed 4-1 in the second.

The seven-time Grand Slam champion was all at sea against the 87th-ranked Johansson, appearing restricted in her movement and lacking the usual power in her game.

But just when the cause looked lost, the world number 24 climbed off the canvas to win in three sets, 3-6, 7-5, 6-4.

Johansson was breaking the Williams serve almost at will for most of the first two sets, but the American found her service range just in the nick of time and turned the match on its head.

The Americans then claimed the tie with a come-from-behind 6-7 (5/7), 6-2, 10-8 win in a match tiebreak in the deciding mixed doubles, where Williams again lifted them to victory as Isner continued to struggle with his game.

Williams, who has been troubled by injuries and illness in recent years, dismissed any suggestion she was off colour during the match against Johansson.

However, Williams admitted even she thought the match had slipped away.

"I was thinking that if I am going to lose this match, let me at least try to work on my game with the Australian Open coming up," she said of the second set.

"Mathilde is a good player and she was determined to seal the win for her team.

"She was playing well and not making a lot of errors."

The eighth-ranked Tsonga made a perfect start to the new year by demolishing world number 14 Isner in under an hour, 6-3, 6-2.

Tsonga easily blunted the power serving of the lanky American to win in just 55 minutes.

Isner had strapping on his right knee and didn't always appear to be moving totally freely, but later said he only had some lingering soreness in the knee and that it didn't affect his game.

Tsonga, now coached by Australian Roger Rasheed, went into the match with just one win in his four previous clashes with the American.

The Frenchman said he was reaping the early rewards of working hard on improving his mobility during the off-season ahead of the year's first Grand Slam, with the Australian Open starting on January 14.

"I was a bit quicker on court than before," he said.

"It is a good sign for the rest of the competition and Melbourne.

"I was moving well and this makes me a better player."

- AFP

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UP government to give Rs 20 lakh compensation for Delhi-gang-rape victim's family

LUCKNOW: Uttar Pradesh (UP) government on Monday announced Rs 20 lakh compensation for the family of the Delhi gang-rape victim who succumbed to injuries two days ago. The compensation will be given from the chief minister's discretionary fund.

Earlier, on December 21, chief minister Akhilesh Yadav had announced to give Rs five lakh financial assistance to the family of the victim in addition to the the offer to all medical expenses and a job after recovery.

The family hails from a village in Ballia district of the state and had moved to Delhi 20 years ago but is still connected to its native place.

He had taken a loan for the education of his daughter who wanted to be a physiotherapist. His two sons are still studying.

The chief minister announced the Rs 20 lakh compensation overlooking the criticism of Bahujan Samaj Party (BSP) chief Mayawati and Shahi Imam of Delhi's Jama Masjid Imam Bukhari. Mayawati had said that compensation is fine but the state government should focus on preventing rapes and provide speedy justice. She had also alleged that crime against women has increased manifold in first nine months of Samajwadi Party (SP) rule in the state. Bukhari had said that SP government should have also announced compensation for the Muslim rape victims.

Earlier today, the Delhi government announced financial aid of Rs 15 lakh for the next of the kin of the 23-year-old gang-rape victim and offered a job to a family member of the girl, who died two days ago.

The decisions were taken at a cabinet meeting presided over by chief minister Sheila Dikshit.

The phsyiotherapy student was brutally gang-raped and assaulted in a moving bus in south Delhi on December 16. She breathed her last in a Singapore hospital on Saturday morning and her mortal remains were cremated here on Sunday.

(Inputs from PTI)

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FDA approves 1st new tuberculosis drug in 40 years

WASHINGTON (AP) — The Food and Drug Administration on Monday approved a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the deadly infection in more than four decades.

The agency approved J&J's pill, Sirturo, for use with older drugs to fight a hard-to-treat strain of tuberculosis that has not responded to other medications. However, the agency cautioned that the drug carries risks of potentially deadly heart problems and should be prescribed carefully by doctors.

Roughly one-third of the world's population is estimated to be infected with the bacteria causing tuberculosis. The disease is rare in the U.S., but kills about 1.4 million people a year worldwide. Of those, about 150,000 succumb to the increasingly common drug-resistant forms of the disease. About 60 percent of all cases are concentrated in China, India, Russia and Eastern Europe.

Sirturo, known chemically as bedaquiline, is the first medicine specifically designed for treating multidrug-resistant tuberculosis. That's a form of the disease that cannot be treated with at least two of the four primary antibiotics used for tuberculosis.

The standard drugs used to fight the disease were developed in the 1950s and 1960s.

"The antibiotics used to treat it have been around for at least 40 years and so the bacterium has become more and more resistant to what we have," said Chrispin Kambili, global medical affairs leader for J&J's Janssen division.

The drug carries a boxed warning indicating that it can interfere with the heart's electrical activity, potentially leading to fatal heart rhythms.

"Sirturo provides much-needed treatment for patients who have don't have other therapeutic options available," said Edward Cox, director of the FDA's antibacterial drugs office. "However, because the drug also carries some significant risks, doctors should make sure they use it appropriately and only in patients who don't have other treatment options."

Nine patients taking Sirturo died in company testing compared with two patients taking a placebo. Five of the deaths in the Sirturo group seemed to be related to tuberculosis, but no explanation was apparent for the remaining four.

Despite the deaths, the FDA approved the drug under its accelerated approval program, which allows the agency to clear innovative drugs based on promising preliminary results.

Last week, the consumer advocacy group Public Citizen criticized that approach, noting the drug's outstanding safety issues.

"The fact that bedaquiline is part of a new class of drug means that an increased level of scrutiny should be required for its approval," the group states. "But the FDA had not yet answered concerns related to unexplained increases in toxicity and death in patients getting the drug."

The FDA said it approved the drug based on two mid-stage studies enrolling 440 patients taking Sirturo. Both studies were designed to measure how long it takes patients to be free of tuberculosis.

Results from the first trial showed most patients taking Sirturo plus older drugs were cured after 83 days, compared with 125 days for those taking a placebo plus older drugs. The second study showed most Sirturo patients were cured after 57 days.

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Time's Up: Sides Closing In on 'Fiscal Cliff' Deal

Congressional and White House negotiators are closing in on a deal to avert across-the-board tax hikes and spending cuts that take effect at midnight, as the nation teeters on the edge of the so-called fiscal cliff.

An emerging tentative agreement would extend current tax rates for households making $450,000 or less; extend the estate tax at its current level of 35 percent for estates larger than $5 million; and prevent the Alternative Minimum Tax from hammering millions of middle-class workers, sources said.

The deal would also extend unemployment benefits set to expire Tuesday and avert a steep cut to Medicare payments for doctors.

Both sides also seem willing to delay by three months automatic spending cuts to defense and domestic programs, the sources said, setting the stage for continued fiscal debate in the next few months tied to the debt ceiling.

Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., are leading the negotiations, sources said, holding several "good" conversations late into Sunday night and continuing a dialogue early this morning.

They are trying to broker an elusive compromise on taxes and spending that can win the support of bipartisan majorities in the Senate and House.

Even if a deal is reached between Biden and McConnell, members in both chambers would still need to review it and vote on it later today. Passage is far from guaranteed.

"This is one Democrat that doesn't agree with that at all," Iowa Democratic Sen. Tom Harkin said of the tentative deal. "No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up."

Failure of Congress to act on a tax measure by Tuesday morning would trigger income tax hikes on all Americans. The average family would pay an extra $3,446 in 2013 under the higher rates, according to the Tax Policy Center.

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

More than $1 trillion in automatic spending cuts to defense and domestic programs will also begin to take effect later this week unless Congress delays or replaces them.

"It is absolutely inexcusable that all of us find ourselves in this place at this time," Sen. Joe Manchin, D-W.Va., said Sunday night on the Senate floor.

"Something has gone terribly wrong when the biggest threat to our American economy is our American Congress," he said, echoing a frustration shared by many Americans.

Republican and Democratic Senate leaders wrangled all weekend over the outlines of a deal, but those talks eventually hit a brick wall on GOP insistence that Social Security savings be included in a deal.

"I want everyone to know I'm willing to get this done, but I need a dance partner," McConnell said Sunday, noting that he had directly reached out to Biden to break the impasse.

As part of any deficit reduction deal, the White House wants to raise income tax rates on people making more than $250,000 a year, a threshold on which President Obama campaigned for re-election.

Republicans, caving on outright opposition to any tax increases, want a higher income threshold for the tax hike of around $450,000, sources said. They also want to prevent the estate tax from rising above its current 35 percent rate on estates of $5.1 million or more.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid of Nevada said Sunday evening. "There is still time to reach an agreement, and we intend to continue negotiations."

Both sides say the cost of failure is high.

"If we are not able to reach an agreement, it will be dire," Sen. Jon Kyl, R-Ariz., said Sunday on ABC's "This Week." "Probably at least another million jobs lost, an unemployment rate over 9 percent, and putting us back into recession."

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State Department made "grievous mistake" over Benghazi: Senate report

WASHINGTON (Reuters) - The State Department made a "grievous mistake" in keeping the U.S. mission in Benghazi open despite inadequate security and increasingly alarming threat assessments in the weeks before a deadly attack by militants, a Senate committee said on Monday.

A report from the Senate Homeland Security Committee on the September 11 attacks on the U.S. mission and a nearby CIA annex, in which the U.S. ambassador to Libya and three other Americans died, faulted intelligence agencies for not focusing tightly enough on Libyan extremists.

It also faulted the State Department for waiting for specific warnings instead of improving security.

The committee's assessment, "Flashing Red: A Special Report On The Terrorist Attack At Benghazi," follows a scathing report by an independent State Department accountability review board that resulted in a top security official resigning and three others at the department being relieved of their duties.

Joseph Lieberman, an independent senator who chairs the committee, said that in thousands of documents it reviewed, there was no indication that Secretary of State Hillary Clinton had personally denied a request for extra funding or security for the Benghazi mission. He said key decisions were made by "midlevel managers" who have since been held accountable.

Republican Senator Susan Collins said it was likely that others needed to be held accountable, but that decision was best made by the Secretary of State, who has the best understanding "of how far up the chain of command the request for additional security went."

The attacks and the death of U.S. Ambassador Christopher Stevens put diplomatic security practices at posts in risky areas under scrutiny and raised questions about whether intelligence on militant activity in the region was adequate.

The Senate report said the lack of specific intelligence of an imminent threat in Benghazi "may reflect a failure" by intelligence agencies to focus closely enough on militant groups with weak or no operational ties to al Qaeda and its affiliates.

"With Osama bin Laden dead and core al Qaeda weakened, a new collection of violent Islamist extremist organizations and cells have emerged in the last two to three years," the report said. That trend has been seen in the "Arab Spring" countries undergoing political transition or military conflict, it said.

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The report recommended that U.S. intelligence agencies "broaden and deepen their focus in Libya and beyond, on nascent violent Islamist extremist groups in the region that lack strong operational ties to core al Qaeda or its main affiliate groups."

Neither the Senate report nor the unclassified accountability review board report pinned blame for the Benghazi attack on a specific militant group. The FBI is investigating who was behind the assaults.

President Barack Obama, in an interview on NBC's "Meet the Press" on Sunday, said the United States had "very good leads" about who carried out the attacks. He did not provide details.

The Senate committee said the State Department should not have waited for specific warnings before acting on improving security in Benghazi.

It also said it was widely known that the post-revolution Libyan government was "incapable of performing its duty to protect U.S. diplomatic facilities and personnel," but the State Department failed to fill the security gap.

"Despite the inability of the Libyan government to fulfill its duties to secure the facility, the increasingly dangerous threat assessments, and a particularly vulnerable facility, the Department of State officials did not conclude the facility in Benghazi should be closed or temporarily shut down," the report said. "That was a grievous mistake."

The Senate panel reviewed changing comments made by the Obama administration after the attack, which led to a political firestorm in the run-up to the November presidential election and resulted in U.S. Ambassador to the United Nations Susan Rice withdrawing her name from consideration to replace Clinton, who is stepping down early next year.

Rice had said her initial comments that the attack grew out of a spontaneous protest over an anti-Islam film were based on talking points provided by intelligence agencies.

Lieberman said it was not the job of intelligence agencies to formulate unclassified talking points and they should decline such requests in the future.

The report said the original talking points included a line saying "we know" that individuals associated with al Qaeda or its affiliates participated in the attacks. But the final version had been changed to say: "There are indications that extremists participated," and the reference to al Qaeda and its affiliates was deleted.

The report said that while James Clapper, the director of national intelligence, had offered to provide the committee with a detailed chronology of how the talking points were written and evolved, this had still not been delivered to Capitol Hill because the administration had spent weeks "debating internally" whether or not it should turn over information considered "deliberative" to Congress.

(Editing by Warren Strobel and David Brunnstrom)

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