Israel hits Hamas government buildings, reservists mobilized

GAZA/JERUSALEM (Reuters) - Israeli aircraft bombed Hamas government buildings in Gaza on Saturday, including the prime minister's office, after Israel's cabinet authorized the mobilization of up to 75,000 reservists, preparing for a possible ground invasion.

Israeli planes shattered the office building of Prime Minister Ismail Haniyeh - where he had met on Friday with the Egyptian prime minister - and struck the Interior Ministry.

Loud explosions regularly rocked the densely populated Palestinian territory, sending plumes of smoke billowing into the sky. The occasional hiss of outgoing rocket fire showed Islamist militants were pursuing their defiance of the assault.

Despite the violence, Tunisia's foreign minister arrived in the coastal enclave on Saturday in a show of solidarity, denouncing the Israeli attacks as illegitimate and unacceptable.

Officials in Gaza said 41 Palestinians, among them 20 civilians including eight children and a pregnant woman, had been killed in Gaza since Israel began operations four days ago. Three Israeli civilians were killed by a rocket on Thursday.

Israel's military said its air force had hit at least 180 targets since midnight, including a police headquarters, government buildings, rocket launching squads and a Hamas training facility in the impoverished territory.

A three-storey house belonging to Hamas official Abu Hassan Salah was also hit and completely destroyed early on Saturday. Rescuers said at least 30 people were pulled from the rubble.

"What Israel is doing is not legitimate and is not acceptable at all," Tunisian Foreign Minister Rafik Abdesslem said as he visited Haniyeh's wrecked headquarters. "It does not have total immunity and is not above international law."

Israel launched a massive air campaign on Wednesday with the declared aim of deterring Hamas from launching cross-border rocket salvoes that have plagued southern Israel for years.

The Palestinians have fired hundreds of rockets out of Gaza, including one at Jerusalem and three at Tel Aviv - Israel's commercial centre. Jerusalem had not been targeted in such a way since 1970, and Tel Aviv since 1991.

Although there were no reports of casualties or damage in either city, the long-range attacks came as a shock and advanced the prospect of an Israeli ground invasion into Gaza

"This will last as long as is needed; we have not limited ourselves in means or in time," Foreign Minister Avigdor Lieberman told Israel's Channel One television on Saturday.

Hamas says it is committed to continued confrontation with Israel and is eager not to seem any less resolute than smaller, more radical groups that have emerged in Gaza in recent years.

The Islamist Hamas has ruled Gaza since 2007. Israel pulled settlers out of Gaza in 2005 but has maintained a blockade of the territory.

EGYPTIAN PEACE EFFORTS

Prime Minister Benjamin Netanyahu held a four-hour strategy session late on Friday with a clutch of senior ministers on widening the military campaign, while other cabinet members were polled by telephone on increasing mobilization.

Political sources said they decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000. It did not necessarily mean all would be called up.

Three soldiers were lightly hurt by fire from the Gaza Strip on Saturday, the army said.

Egyptian Prime Minister Hisham Kandil paid a high-profile visit to Gaza on Friday, denouncing what he described as Israeli aggression and saying Cairo was prepared to mediate a ceasefire.

Egypt's Islamist government, which took power after free elections following an uprising that ousted veteran autocrat Hosni Mubarak, is allied with Hamas but also party to a 1979 peace treaty with Israel.

"Egypt will spare no effort ... to stop the aggression and to achieve a truce," Kandil said.

A Palestinian official with knowledge of Cairo's mediation efforts said on Saturday that Egypt was pursuing a truce.

"Egyptian mediators are continuing their mediation efforts and these will intensify in the coming hours," he told Reuters.

In a further sign Netanyahu might be clearing the way for a ground operation, Israel's armed forces decreed a highway leading to the territory and two roads bordering the enclave of 1.7 million Palestinians off-limits to civilian traffic.

Tanks and self-propelled guns were seen near the sandy border zone on Saturday, and around 16,000 reservists have already been called to active duty.

The Israeli military said some 367 rockets fired from Gaza had hit Israel since Wednesday and at least 222 more were intercepted by its Iron Dome anti-missile system.

Four Iron Domes were deployed initially and a fifth was rushed into action on Saturday, weeks ahead of schedule. The army said it was placed in the Tel Aviv area, showing Israel's concern for the safety of its heavily populated coastline.

Netanyahu is favored to win a January election, but further rocket strikes against Tel Aviv, a free-wheeling city Israelis equate with New York, and Jerusalem, which Israel regards as its capital, could be political poison for the conservative leader.

OBAMA REGRET

U.S. President Barack Obama commended Egypt's efforts to help calm the Gaza violence in a call to Egyptian President Mohamed Mursi on Friday, the White House said, and underscored his hope of restoring stability.

In a call with Netanyahu, Obama discussed options for "de-escalating" the situation, the White House added.

Obama "reiterated U.S. support for Israel's right to defend itself, and expressed regret over the loss of Israeli and Palestinian civilian lives," a statement on the call said.

Israel Radio's military affairs correspondent said the army's Homefront Command had told municipal officials to make civil defense preparations for the possibility that fighting could drag on for seven weeks. An Israeli military spokeswoman declined to comment on the report.

The Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolutions and a civil war in Syria that threatens to spread across borders.

"Israel should understand that many things have changed and that lots of water has run in the Arab river," Tunisia's Abdesslem told reporters in Gaza.

It is the stiffest challenge yet for Mursi, a veteran politician from the Muslim Brotherhood who was elected this year after protests ended Mubarak's 30-year rule in 2011.

Egypt's Muslim Brotherhood are spiritual mentors of Hamas, yet Mursi has also pledged to respect Cairo's peace accord with Israel, which is seen in the West as the foundation of regional security. Egypt and Israel both receive billions of dollars in U.S. military aid to underwrite their treaty.

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009, killed more than 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

U.N. Secretary-General Ban Ki-moon is expected to visit Israel and Egypt next week to push for an end to the fighting in Gaza, U.N. diplomats said on Friday.

Hamas refuses to recognize Israel's right to exist. By contrast, Palestinian President Mahmoud Abbas, who rules in the nearby West Bank, does recognize Israel, but peace talks between the two sides have been frozen since 2010.

Abbas' supporters say they will push ahead with a plan to have Palestine declared an "observer state" rather than a mere "entity", at the United Nations later this month.

(Additional reporting by Maayan Lubell and Ori Lewis in Jerusalem; Writing by Crispian Balmer and Jeffrey Heller; Editing by)

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Japan PM dissolves parliament; vote set for Dec 16

TOKYO (AP) — Japanese Prime Minister Yoshihiko Noda dissolved the lower house of parliament Friday, paving the way for elections in which his ruling party will likely give way to a weak coalition government divided over how to solve the nation's myriad problems.

Elections are set for Dec. 16. If Noda's center-left party loses, the economically sputtering country will get its seventh prime minister in six and a half years.

The opposition Liberal Democratic Party, which led Japan for most of the post-World War II era, is in the best position to take over. The timing of the election likely pre-empts moves by more conservative challengers, including former Tokyo Gov. Shintaro Ishihara, to build electoral support.

Campaigning is set to begin Dec. 4, but leaders were already switching into campaign mode.

"What's at stake in the upcoming elections is whether Japan's future is going to move forward or backward," Noda declared to fellow leaders of the Democratic Party of Japan. "It is going to be a crucial election to determine the fate of Japan."

The DPJ, in power for three years, has grown unpopular largely because of its handling of the Fukushima nuclear crisis and its recent doubling of the sales tax.

Noda's most likely successor is LDP head and former Prime Minister Shinzo Abe. He resigned as Japan's leader in 2007 after a year in office, citing health problems he says are no longer an issue.

"I will do my utmost to end the political chaos and stalled economy," Abe told reporters. "I will take the lead to make that happen."

The path to elections was laid suddenly Wednesday during a debate between Abe and Noda. Noda abruptly said he would dissolve parliament if the opposition would agree to key reforms, including a deficit financing bill and electoral reforms, and Abe jumped at the chance.

Polls indicate that the conservative, business-friendly LDP will win the most seats in the 480-seat lower house but will fall far short of a majority. That would force it to cobble together a coalition of parties with differing policies and priorities.

"It's unlikely that the election will result in a clear mandate for anybody," said Koichi Nakano, a political science professor at Sophia University. "So in that sense, there's still going to be a lot of muddling through."

The election, and the divided government that is likely to follow, complicate efforts to extricate Japan from its two-decade economic slump and effectively handle the cleanup from its 2011 nuclear disaster.

Still, many saw the prospect of change as positive: Japan's Nikkei 225 stock index jumped 2.2 percent Friday to 9,024.16.

Japan's leaders urgently need to devise strategies for coping with a soaring national debt, now more than double the national GDP, and a rapidly aging population. Japan must also decide whether it will follow through with plans to phase out nuclear power by 2040 — a move that many in the LDP oppose.

Perhaps most pressing is Japan's festering territorial dispute with China, which has hammered Japanese exports to its biggest trading partner.

A staunch nationalist, Abe has railed against China in the dispute over a cluster of uninhabited islands in the East China Sea controlled by Japan but also claimed by China and Taiwan.

Japan is going through a messy political transition, with a merry-go-round of prime ministers and the emergence of various parties to challenge the long-dominant LDP.

The DPJ ousted the LDP in a 2009 landslide, raising hopes for change. But the DPJ's failure to keep campaign promises and the government's handling of the nuclear crisis triggered by a March 11, 2011, earthquake and tsunami left many disillusioned. Noda's centerpiece achievement during nearly 15 months in office was a highly unpopular bill doubling the 5 percent national sales tax by 2015.

Polls show public support for the DPJ in the low teens, while 25 to 30 percent of voters back the LDP. Several other parties have lower levels of support, and nearly half the electorate is undecided.

"There are so many lying politicians," said Tokyo resident Michiyo Komaki. "I just wish for a leader who would do his job properly."

Ishihara recently resigned as Tokyo governor to create the Sunrise Party. As governor, he helped instigate the territorial crisis with China by declaring that Tokyo would buy and develop the disputed islands controlled by Japan but long claimed by Beijing. The central government bought the islands itself, intending to thwart Ishihara's more extreme plans, but China was still enraged.

Ishihara has been courting Toru Hashimoto, the young, outspoken mayor of Osaka, Japan's second-biggest city, in hopes of tapping voter dismay. Both have formed their own national political parties, but may not have enough time to get organized for the election.

The two men are reportedly in discussions to merge their parties and form a so-called "third force" to counter the LDP and DPJ, but apparently are struggling to reconcile conflicting policy views, including on nuclear power.

"The era of one-party dominance is clearly over and behind us," said Nakano, the professor. "We know what we are transiting from, but we don't know where we are going."

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Associated Press writers Elaine Kurtenbach and Mari Yamaguchi contributed to this report.

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Jason Mraz to make historic appearance in Myanmar

NASHVILLE, Tenn. (AP) — Jason Mraz will make history next month when he performs in Myanmar to raise awareness about human trafficking.

Mraz will headline a free outdoor concert on Dec. 16 at People's Square in Yangon, at the base of Shwedagon Pagoda.

The Grammy-winning singer-songwriter is believed to be the first international artist to perform an open-air concert in the country. The show includes local acts and is hosted by MTV EXIT, the music channel's initiative to raise awareness about human trafficking and exploitation.

"That's pretty exciting," Mraz said of the history involved, "and I'm going there with an enormous amount of gratitude and respect, and I hope we can actually make a difference. I hope it's also a testament to the songs. I've always wanted my songs to be about healing and self-empowerment, and if this is the way MTV is acknowledging that, then I am incredibly grateful."

The show, which will include local acts, will be broadcast on Myanmar national television and will air on MTV's international network in 2013. Mraz hosted a similar concert in the Philippines last year. He first became interested in the issue about four years ago when he attended the Freedom Awards, an annual salute to those working against human exploitation put on by the organization Free the Slaves.

"I thought this was something that was abolished when Abraham Lincoln signed the Emancipation Proclamation, but all it did is become hidden from our view," Mraz said in a phone interview from Zurich, Switzerland. "There was a recent estimate that there are about 27 million people enslaved on the planet, certainly due to hard economic times not just in the Western world but certainly in Third World countries. Humans as a commodity is a great way to run your business. So I signed on, lent my voice, lent my music to the cause."

Myanmar is opening itself to the world since a military junta ceded power to a new elected government last year. President Thein Sein's government has pushed the country toward democracy, and this Monday Barack Obama is scheduled to become the first sitting U.S. president to visit the country.

Mraz says there is concern predators will prey on the vulnerable in this time of great flux. The concert offers an opportunity to "educate, empower and engage." The 35-year-old singer says he plans to tailor his show to the message.

"I do curate a set list that I feel is going to be part of that educate, empower and engage (theme)," he said. "Obviously songs like 'I'm Yours,' 'I Won't Give Up' are great examples. Or '93 Million Miles' is a new one where it's about believing in yourself. And a lot of my songs are about that, about believing in yourself and really going for your dreams. Those are the kinds of songs I'll be playing at that show."

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Online:

http://jasonmraz.com

http://mtvexit.org

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott .

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Migration officials say cholera in Haiti on rise

GENEVA (AP) — The world's largest agency that deals with global migration says cholera is again on the rise in Haiti.

The International Organization for Migration says Haitian officials have confirmed 3,593 cholera cases and another 837 suspected cases since Hurricane Sandy's passage.

IOM spokesman Jumbe Omari Jumbe told reporters Friday in Geneva "the numbers are going up" particularly in camps around the capital, Port-au-Prince.

He said his organization has responded by handing out about 10,000 cholera kits in 31 camps this week "badly hit by cholera in the area."

Cholera is a bacterial infection that spreads through water, and Haiti's lack of proper sanitation and sewage systems makes the country more vulnerable.

Haiti was spared a direct hit from Hurricane Sandy on Oct. 24, but received heavy rain for several days.

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Egypt presses truce as violence escalates

GAZA CITY, Gaza Strip (AP) — Egypt's prime minister rushed to the aid of the Gaza Strip's Hamas rulers Friday in the midst of an Israeli offensive there, calling for an end to the operation. Palestinian militants took advantage of an Israeli halt in fire during the visit to rain rockets on Israel, including a strike on the bustling metropolis of Tel Aviv for a second straight day.

Three days of fierce fighting between Israel and Gaza militants has widened the instability gripping the region, straining already frayed Israel-Egypt relations. The Islamist Cairo government recalled its ambassador in protest and dispatched Prime Minister Hesham Kandil to the Palestinian territory Friday in a show of solidarity with Hamas.

Israel, meanwhile, showed signs it was preparing to widen the offensive. After days of battering militant targets with airstrikes, Israeli forces were massing along the border in preparation for a possible ground invasion.

The operation began Wednesday with the assassination of Hamas' military chief and dozens of airstrikes on rocket launching sites. While Israel claims to have inflicted heavy damage, militants have fired hundreds of rockets into southern Israel, bringing the entire region to a standstill. At least 21 Palestinians and three Israelis have been killed, according to medical officials on both sides.

Israel, at Egypt's request, suspended its attacks during the Egyptian official's brief visit, but Palestinians brushed aside this first possible break in the escalating conflict with a wide-ranging rocket barrage. Hamas officials claimed Israel carried out several airstrikes during the visit — a claim that Israel rejected.

Israel promised to "hold its fire" during Kandil's visit "on the condition that during that period, there won't be hostile fire from Gaza into Israel," an Israeli official said, speaking on condition of anonymity to disclose the decision. The official also said Prime Minister Benjamin Netanyahu remained committed to maintaining the historic 1979 peace treaty with Egypt.

But militant factions rejected the gesture and the Israeli military said Gaza militants fired off 60 rockets after Kandil crossed into Gaza from Egypt, heavily guarded by Egyptian security personnel wearing flak jackets and carrying assault rifles.

Kandil was greeted by Gaza's Hamas prime minister, Ismail Haniyeh, who was making his first public appearance since Israel launched the offensive. The two visited wounded Palestinians at Shifa hospital in Gaza City, where medics had brought in the lifeless body of a 4-year-old boy.

Tears streaming from his eyes, Kandil claimed afterward that the boy was killed in an Israeli airstrike, and called for an end to the operation.

"What I saw today in the hospital, the wounded and the martyrs, the boy, the martyr Mohammad Yasser, whose blood is still on my hands and clothes, is something that we cannot keep silent about," he said.

Neighbors said the boy was killed in a blast around 8:30 am, around the time Kandil was entering the territory.

Israel, which ordinarily confirms strikes, vociferously denied carrying out any form of attack in the area since the previous night.

Kandil's visit came after a night of fierce exchanges and signals that Israel might be preparing to invade Gaza. Overnight, the military said it targeted about 150 of the sites Gaza gunmen use to fire rockets at Israel, as well as ammunition warehouses, bringing to 450 the number of sites struck since the operation began Wednesday.

Israeli troops, tanks and armored personnel carriers massed near the Palestinian territory, signaling a ground invasion might be imminent.

Militants unleashed dozens of rocket barrages overnight, setting off air-raid sirens throughout an area that is home to some 1 million Israelis.

One rocket, fired Friday afternoon, set off air raid sirens and an explosion in Tel Aviv, Israel's bustling cultural and commercial capital. Police spokesman Micky Rosenfeld said no one was injured and it appears the rocket landed in the Mediterranean.

It was the second straight day that rockets have reached the Tel Aviv area, marking a significant improvement in the militants' capabilities. Gaza militants have never before managed to strike the city.

Israel considers an attack on the city to be a major escalation. The rocket attacks on Tel Aviv appear to be raising the likelihood of an Israeli ground invasion of Gaza.

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Teibel reported from Jerusalem.

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Parents slam Irish abortion laws after woman dies

NEW DELHI (AP) — The parents of an Indian woman who suffered a miscarriage and died after being refused an abortion in an Irish hospital slammed Ireland's abortion laws Thursday.

Savita Halappanavar was 17 weeks pregnant when she miscarried and died last month. Ireland's government confirmed Wednesday that Halappanavar suffered from blood poisoning and died after being denied an abortion, reigniting the debate over legalizing abortion in the predominantly Catholic country.

"In an attempt to save a 4-month-old fetus they killed my 30-year-old daughter. How is that fair you tell me?" A. Mahadevi, Halappanavar's mother, told several Indian television stations. Her daughter actually was 31 when she died.

"How many more cases will there be? The rules should be changed as per the requirement of Hindus. We are Hindus, not Christians," she said.

Savita Halappanavar's father, Andanappa Yalagi, said the combination of medical negligence and Irish abortion laws led to his daughter's death.

The spokesman for India's Ministry of External Affairs, Syed Akbaruddin, said in a Twitter post that the Indian Embassy in Dublin was "following the matter."

Halappanavar's husband, Praveen, said doctors at University Hospital Galway in western Ireland determined that his wife was miscarrying within hours of her hospitalization for severe pain on Oct. 21. He said over the next three days, doctors refused their requests for an abortion to combat her searing pain and fading health.

It was only after the fetus died that its remains were surgically removed. Within hours, Savita was placed under sedation in intensive care with blood poisoning, her husband said. By Oct. 27, her heart, kidneys and liver had stopped working, and she was pronounced dead the next day.

Three separate investigations are looking into the cause of Halappanavar's death.

Ireland's constitution officially bans abortion, but a 1992 Supreme Court ruling said the procedure should be legalized for situations when the woman's life is at risk from continuing the pregnancy. Five governments since have refused to pass a law resolving the confusion, leaving Irish hospitals reluctant to terminate pregnancies except in the most obviously life-threatening circumstances.

An estimated 4,000 Irish women travel next door to England every year, where abortion has been legal on demand since 1967. But that option is difficult, if not impossible, if the woman's health is failing.

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'30 Rock' heroine Liz Lemon to wed this month

NEW YORK (AP) — NBC says Liz Lemon, the harried heroine of "30 Rock," will soon be getting married.

The network said Thursday the perennial bridesmaid played by Tina Fey will wed on the "30 Rock" episode that airs Nov. 29.

Who's the lucky groom? He's Criss Chros, played by guest star James Marsden. Criss, who arrived on the scene last season, is a would-be entrepreneur with a bright smile and a dim wit.

"30 Rock" is the saga of Lemon, the overextended producer of a fictitious comedy series. She is surrounded by kookie comrades like company boss Jack Donaghy, played by Alec Baldwin, and her boisterously unhinged star Tracy Jordan, played by Tracy Morgan.

"30 Rock" will conclude its seven-season run early next year.

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Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

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Online:

CDC report: http://www.cdc.gov/nchs/

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Sources: BP to pay record fine for Gulf Coast disaster

HOUSTON/WASHINGTON (Reuters) - BP Plc is expected to pay a record U.S. criminal penalty and plead guilty to criminal misconduct in the 2010 Deepwater Horizon disaster through a plea deal reached with the Department of Justice (DoJ) that may be announced as soon as Thursday, according to sources familiar with discussions.

Three sources, who spoke to Reuters on condition of anonymity, said BP would plead guilty in exchange for a waiver of future prosecution on the charges.

BP confirmed it was in "advanced discussions" with the DoJ and the Securities & Exchange Commission (SEC).

The talks were about "proposed resolutions of all U.S. federal government criminal and SEC claims against BP in connection with the Deepwater Horizon incident," it said in a statement on Thursday, but added that no final agreements had been reached.

The discussion do not cover federal civil claims, both BP and the sources said.

London-based oil giant BP has been locked in months-long negotiations with the U.S. government and Gulf Coast states to settle billions of dollars of potential civil and criminal liability claims resulting from the April 20, 2010, explosion aboard the Deepwater Horizon rig.

The sources did not disclose the amount of BP's payment, but one said it would be the largest criminal penalty in U.S. history. That record is now held by Pfizer Inc, which paid a $1.3 billion fine in 2009 for marketing fraud related to its Bextra pain medicine.

The DoJ declined to comment.

The deal could resolve a significant share of the liability that BP faces after the explosion killed 11 workers and fouled the shorelines of four Gulf Coast states in the worst offshore spill in U.S. history. BP, which saw its market value plummet and replaced its CEO in the aftermath of the spill, still faces economic and environmental damage claims sought by U.S. Gulf Coast states and other private plaintiffs.

The fine would far outstrip BP's last major settlement with the DoJ in 2007, when it payed about $373 million to resolve three separate probes into a deadly 2005 Texas refinery explosion, an Alaska oil pipeline leak and fraud for conspiring to corner the U.S. propane market.

The massive settlement, which comes a week after the U.S. presidential election, could ignite a debate in Congress about how funds would be shared with Gulf Coast states, depending on how the deal is structured. Congress passed a law last year that would earmark 80 percent of BP penalties paid under the Clean Water Act to the spill-hit states of Louisiana, Mississippi, Alabama, Florida and Texas.

POTENTIAL LIABILITY

In an August filing, the DoJ said "reckless management" of the Macondo well "constituted gross negligence and willful misconduct" which it intended to prove at a civil trial set to begin in New Orleans in February 2013. The U.S. government has not yet filed any criminal charges in the case.

Given that the deal will not resolve any civil charges brought by the Justice Department, it is also unclear how large a financial penalty BP might pay to resolve the charges, or other punishments that BP might face.

Negligence is a central issue to BP's potential liability. A gross negligence finding could nearly quadruple the civil damages owed by BP under the Clean Water Act to $21 billion in a straight-line calculation.

Still unresolved is potential liability faced by Swiss-based Transocean Ltd, owner of the Deepwater Horizon vessel, and Halliburton Co, which provided cementing work on the well that U.S. investigators say was flawed. Both companies were not immediately available for comment.

According to the Justice Department, errors made by BP and Transocean in deciphering a pressure test of the Macondo well are a clear indication of gross negligence.

"That such a simple, yet fundamental and safety-critical test could have been so stunningly, blindingly botched in so many ways, by so many people, demonstrates gross negligence," the government said in its August filing.

Transocean in September disclosed it is in discussions with the Justice Department to pay $1.5 billion to resolve civil and criminal claims.

The mile-deep Macondo well spewed 4.9 million barrels of oil into the Gulf of Mexico over a period of 87 days. The torrent fouled shorelines from Texas to Florida and eclipsed in severity the 1989 Exxon Valdez spill in Alaska.

BP has already announced an uncapped class-action settlement with private plaintiffs that the company estimates will cost $7.8 billion to resolve litigation brought by over 100,000 individuals and businesses claiming economic and medical damages from the spill.

(Additional reporting by Andrew Callus in London; Editing by Edward Tobin and David Stamp)

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China's Hu clears way for Xi to take party helm

BEIJING (AP) — President Hu Jintao stepped aside as ruling party leader Wednesday to clear the way for Vice President Xi Jinping to take China's helm as part of only the second orderly transfer of power in 63 years of Communist rule.

In a possible break from tradition, Hu may also be giving up his post as head of the commission that oversees the military, which would give Xi greater leeway to consolidate his authority when he takes over. A top general indicated Hu would not stay on in the military post.

Hu and other senior leaders mostly in their late 60s are handing over power to leader-in-waiting Xi and other colleagues in their late 50s over the next several months. The new leadership faces daunting challenges including slowing growth in the world's No. 2 economy, rising unrest among increasingly assertive citizens and delicate relations with neighboring countries.

In keeping with the widely anticipated succession plans, Hu was not re-elected a member of the party's Central Committee on the final day of a pivotal party congress, showing that he's no longer in the political leadership.

Delegates said they cheered when the announced results of secret balloting showed that Xi had been unanimously chosen for the committee, a step toward being named to the topmost panel, the Politburo Standing Committee, and becoming party leader as expected on Thursday. Li Keqiang, designated as the next premier, also was elected to the Central Committee of 205 full members.

"We were very happy, and the whole assembly responded with warm applause," said delegate Si Zefu, president of the Dongfang Electric Corp. based in the central city of Chengdu.

Previous outgoing leaders, including former President Jiang Zemin, have held onto the military post for a transitional period to extend their grip on power. Asked by Hong Kong reporters if Hu would retain his chairmanship of the military commission, Zhang Qinsheng, deputy chief of general staff of the People's Liberation Army, said the central leadership "had no such arrangements."

Zhang Lifan, an independent scholar in Beijing, said relinquishing all posts would be Hu's contribution to China's political reform.

"It will be an important political legacy, as he will break the bad tradition of holding onto power by outgoing officials," he said.

As the final day of the secretive, weeklong congress drew to a close in the Great Hall of the People, and after reporters were invited in to watch the proceedings, Hu reminded party leaders of the "glorious mission and heavy responsibilities" entrusted to them.

"We must strive to be role models, bring out our best in working for the cause of the party and the country," he said.

Sitting on the dais of leaders next to Hu was his predecessor, the 86-year-old Jiang, who has emerged as a key power-broker, maneuvering his allies into the leadership at the expense of Hu. Jiang had to be helped up by attendants when congress members stood for the Communist anthem, the Internationale. Afterward, Jiang turned to Hu and shook hands before being escorted offstage.

Hu later picked up some papers, shook hands with people in the row behind him and walked off the stage.

The party's 2,200-plus delegates also rubber-stamped the report Hu delivered last week committing the party to continuing a pro-economic growth agenda while retaining firm political control. Hu urged stronger measures to rein in corruption and make the government more responsive to public demands, but offered little in the way of specifics.

The next lineup of China's most powerful body, the Politburo Standing Committee, will be announced on Thursday. Though congress and Central Committee delegates have some influence over leadership decisions, most of the lineup is decided among a core group of the most powerful party members and elders.

The congress votes are "fully democratic" but "there is a degree of inevitability," actor and party delegate Song Guofeng of Liaoning province said as he entered the hall Wednesday.

"We need to have continuity in leadership to carry on," Song said. "They are already in the leadership core. The stability of the party and of the country is important."

Xi and Li — part of a generation schooled at a time of more openness to the West than their predecessors — were inducted into the leadership five years ago and are shoo-ins for the Standing Committee. But other positions on the panel were believed up for grabs and the subject of intense jockeying ahead of the congress.

The committee currently has nine members but may be reduced to seven. Wang Qishan, another vice premier, was named to the party's disciplinary body in a sign he would likely be named to the top committee.

China's leadership transitions are always occasions for fractious backroom bargaining, but this one has been further complicated by scandals that have fed public cynicism that their leaders are more concerned with power and wealth than government.

In recent months, Bo Xilai, a senior politician seen as a rising star, was purged after his aide exposed that his wife had murdered a British businessman. An ally of Hu's was sidelined after his son died in the crash of a Ferrari he shouldn't have been able to afford. And foreign media recently reported that relatives of Xi and outgoing Premier Wen Jiabao have amassed vast wealth. The scandals have weakened Hu, on whose watch they occurred.

Hu took over as party boss in 2002 in the first power transfer that did not involve the death of a leader or the unseating of a designated successor.

He will remain in the largely ceremonial post of president until March. Whether or not he remains head of the military commission should be confirmed Thursday.

In a nod to Hu's 10 years in power, the congress upgraded his pet theory, the Scientific Outlook on Development, to rank alongside other key schools of thought in the party constitution such as Marxism-Leninsim and Mao Zedong Thought. Hu's program called for more balanced growth in an attempt to distribute benefits more fairly across society.

The congress is a largely ceremonial gathering of representatives — mostly carefully selected from the national and provincial political and military elite. The real deal-making for the top positions is done behind the scenes by the true power-holders. The newly selected Central Committee meets Thursday to select the next Politburo of about two dozen members and from that, the Politburo Standing Committee.

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Associated Press writers Chris Bodeen, Didi Tang and Charles Hutzler in Beijing contributed to this report.

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