Subaru recalls up to 630,000 US vehicles over faulty light

WASHINGTON: Japanese automaker Subaru could recall up to 630,000 cars and SUVs in the United States because of a faulty puddle light that could short-circuit, possibly sparking a fire, the firm said Thursday.

Subaru did not say whether it was aware of any accidents or injuries as a result of the defect, which affects certain 2006 to 2012 Legacy, Outback, Tribeca and Forester vehicles equipped with an optional accessory light.

"A short circuit can develop when either the puddle light or connector are exposed to an electrolytic moisture source (i.e. salt water) and it penetrates the circuit board of the puddle light or the pins of the puddle light connector," the company wrote in a notice to federal safety regulators.

"This may generate heat which may melt the plastic resulting in smoke or fire."

Subaru said the first complaint of "smoke and/or fire" was in 2007, adding that the company had made several changes to try to fix it.

After determining in a review begun in 2011 that the defect related to safety, the company ordered the recall. Affected vehicles will be equipped with an additional fused-harness, free of charge.

- AFP/ir

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PM unveils new science policy

KOLKATA: India today unveiled a new science policy that lays greater thrust on innovation, establishing research institutes and encourage women scientists with an aim to position itself among the top five scientific powers in the world by 2020.

The Science, Technology and Innovation (STI) Policy, 2013 also speaks of modifying the intellectual property regime to provide for marching rights for social good when supported by public funds and co-sharing of patents generated in the public private partnership mode.

Unveiling the STI policy, Prime Minister Manmohan Singh said it aspires to position India among the top five global scientific powers by 2020.

"It is an ambitious goal," he said, adding the policy also aims at producing and nurturing talent in science, to stimulate research in universities, to develop young leaders in the field of science and to reward performance.

It also seeks to create a policy environment for greater private sector participation in research and innovation and to forge international alliances and collaborations to meet the national agenda, he said.

The policy also talks of raising gross expenditure in R&D to two per cent of GDP from the current one per cent in this decade by encouraging enhanced private sector contribution.

"The policy is truly aspirational and seeks to accelerate the pace of discovery and delivery of science-led solutions for faster, sustainable and inclusive growth," Science and Technology Minister S Jaipal Reddy said.

He dubbed the policy as a "rare and resounding expression of collective will and wisdom of the Indian scientific community that is at once a product of and a clarion call of the scientific community".

The document is a revision of the 2003 policy which sought to bring science and technology together and emphasised on the need for higher investment into R&D to address national problems.

The (STI) policy also seeks to trigger an ecosystem for innovative abilities to flourish by leveraging partnerships among diverse stakeholders and by encouraging and facilitating enterprises to invest in innovations.

The aim of the policy is to accelerate the pace of discovery, diffusion and delivery of science-led solutions for serving the aspirational goals of India for faster, sustainable and inclusive growth.

The key features of the STI Policy 2013 include making careers in science, research and innovation attractive, establishing world-class infrastructure for R&D for gaining global leadership in some select frontier areas of science.

The policy also includes linking contributions of science, research and innovation system with the inclusive economic growth agenda and combining priorities of excellence and relevance.

It also stresses on creating an environment for enhanced private sector participation in R&D, enabling conversion of R&D outputs into societal and commercial applications by replicating successful models as well as establishing of new public-private partnership structures.

India first unveiled its Scientific Policy Resolution in 1958 which resolved to "foster, promote and sustain" the cultivation of science and scientific research in all its aspects.

The Technology Policy Statement of 1983 focused on the need to attain technological competence and self reliance.

Officials said in today's world, innovation was no longer a mere appendage to S&T but has assumed centre stage in its own right in the development of countries around the world.

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Flu? Malaria? Disease forecasters look to the sky

NEW YORK (AP) — Only a 10 percent chance of showers today, but a 70 percent chance of flu next month.

That's the kind of forecasting health scientists are trying to move toward, as they increasingly include weather data in their attempts to predict disease outbreaks.

In one recent study, two scientists reported they could predict — more than seven weeks in advance — when flu season was going to peak in New York City. Theirs was just the latest in a growing wave of computer models that factor in rainfall, temperature or other weather conditions to forecast disease.

Health officials are excited by this kind of work and the idea that it could be used to fine-tune vaccination campaigns or other disease prevention efforts.

At the same time, experts note that outbreaks are influenced as much, or more, by human behavior and other factors as by the weather. Some argue weather-based outbreak predictions still have a long way to go. And when government health officials warned in early December that flu season seemed to be off to an early start, they said there was no evidence it was driven by the weather.

This disease-forecasting concept is not new: Scientists have been working on mathematical models to predict outbreaks for decades and have long factored in the weather. They have known, for example, that temperature and rainfall affect the breeding of mosquitoes that carry malaria, West Nile virus and other dangerous diseases.

Recent improvements in weather-tracking have helped, including satellite technology and more sophisticated computer data processing.

As a result, "in the last five years or so, there's been quite an improvement and acceleration" in weather-focused disease modeling, said Ira Longini, a University of Florida biostatistician who's worked on outbreak prediction projects.

Some models have been labeled successes.

In the United States, researchers at Johns Hopkins University and the University of New Mexico tried to predict outbreaks of hantavirus in the late 1990s. They used rain and snow data and other information to study patterns of plant growth that attract rodents. People catch the disease from the droppings of infected rodents.

"We predicted what would happen later that year," said Gregory Glass, a Johns Hopkins researcher who worked on the project.

More recently, in east Africa, satellites have been used to predict rainfall by measuring sea-surface temperatures and cloud density. That's been used to generate "risk maps" for Rift Valley fever — a virus that spreads from animals to people and in severe cases can cause blindness or death. Researchers have said the system in some cases has given two to six weeks advance warning.

Last year, other researchers using satellite data in east Africa said they found that a small change in average temperature was a warning sign cholera cases would double within four months.

"We are getting very close to developing a viable forecasting system" against cholera that can help health officials in African countries ramp up emergency vaccinations and other efforts, said a statement by one of the authors, Rita Reyburn of the International Vaccine Institute in Seoul, South Korea.

Some diseases are hard to forecast, such as West Nile virus. Last year, the U.S. suffered one of its worst years since the virus arrived in 1999. There were more than 2,600 serious illnesses and nearly 240 deaths.

Officials said the mild winter, early spring and very hot summer helped spur mosquito breeding and the spread of the virus. But the danger wasn't spread uniformly. In Texas, the Dallas area was particularly hard-hit, while other places, including some with similar weather patterns and the same type of mosquitoes, were not as affected.

"Why Dallas, and not areas with similar ecological conditions? We don't really know," said Roger Nasci of the Centers for Disease Control and Prevention. He is chief of the CDC branch that tracks insect-borne viruses.

Some think flu lends itself to outbreak forecasting — there's already a predictability to the annual winter flu season. But that's been tricky, too.

Seasonal flu reports come from doctors' offices, but those show the disease when it's already spreading. Some researchers have studied tweets on Twitter and searches on Google, but their work has offered a jump of only a week or two on traditional methods.

In the study of New York City flu cases published last month in the Proceedings of the National Academy of Sciences, the authors said they could forecast, by up to seven weeks, the peak of flu season.

They designed a model based on weather and flu data from past years, 2003-09. In part, their design was based on earlier studies that found flu virus spreads better when the air is dry and turns colder. They made calculations based on humidity readings and on Google Flu Trends, which tracks how many people are searching each day for information on flu-related topics (often because they're beginning to feel ill).

Using that model, they hope to try real-time predictions as early as next year, said Jeffrey Shaman of Columbia University, who led the work.

"It's certainly exciting," said Lyn Finelli, the CDC's flu surveillance chief. She said the CDC supports Shaman's work, but agency officials are eager to see follow-up studies showing the model can predict flu trends in places different from New York, like Miami.

Despite the optimism by some, Dr. Edward Ryan, a Harvard University professor of immunology and infectious diseases, is cautious about weather-based prediction models. "I'm not sure any of them are ready for prime time," he said.

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Senate Swears in Historic 20th Female Senator

Today the Senate will make history, swearing in a record-breaking 20 female senators -- four Republicans and 16 Democrats -- in office.

As the 113th Congress is sworn in today on Capitol Hill, ABC "World News" anchor Diane Sawyer has an exclusive joint interview with the historic class of female senators.

Diane Sawyer's complete interview will air on "World News" and "Nightline" tonight.

"I can't tell you the joy that I feel in my heart to look at these 20 gifted and talented women from two different parties, different zip codes to fill this room," Sen. Barbara Mikulksi, D-Md., said while surrounded by the group of women senators. "In all of American history only 16 women had served. Now there are 20 of us."

Senator-elect Deb Fischer, R-Neb., today becomes the first women to be elected as a senator in Nebraska.

"It was an historic election," Fischer said, "But what was really fun about it were the number of mothers and fathers who brought their daughters up to me during the campaign and said, "Can we get a picture? Can we get a picture?' Because people realize it and -- things do change, things do change."

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The women senators all agree that women will be getting things done in this new Congress, a sign of optimism felt for the new Congress, after the bruising battles of the 112th Congress.

"We're in force and we're in leadership positions, but it's not just the position that we hold. I can tell you this is a can-do crowd," Mikulski said of both Democrats and Republican senators in the room. "We are today ready to be a force in American politics."

And while the number of women in the Senate today makes history, many of the women agreed that they want to keep fighting to boost those numbers.

Sen. Barbara Boxer, D-Calif., said that women are still "underrepresented" in the Senate.

"I think that until we get to 50, we still have to fight because it's still a problem," Boxer said. "I think this class as you look around, Republicans and Democrats. ... I think that because of this new class and the caliber of the people coming and the quality of the people coming, I think that hopefully in my lifetime -- and I really do hope and pray this is the case -- we will see 50 percent. "

No Sorority Here, Even With the Will to Work Together

The cooperation does not make them a "sorority," Sen. Dianne Feinstein, D-Calif., says. There are real differences in ideology and personality and they don't want their gender to define them as senators.

But the women also admit that they believe having more women in the room would help in fierce negotiations, compromise and legislating on Capitol Hill, traits they say do not come as naturally to their male colleagues in the Senate. That sentiment enjoys bipartisan support among the women of the Senate.

"What I find is with all due deference to our male colleagues, that women's styles tend to be more collaborative," Sen. Susan Collins, R-Maine, said.

Sen. Claire McCaskill, D-Mo., said by nature women are "less confrontational." Sen-elect Mazie Hirono, D-Hawaii, says that women are "problem solvers."

Sen. Amy Klobuchar, D-Minn., says that women have a camaraderie which helps in relationships that are key to negotiations on Capitol Hill, something she says comes natural to women more than men.

"I think there's just a lot of collaboration between the women senators and... advice and really standing up for each other that you don't always see with the men," she said.

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U.N. raises Syria death toll to 60,000

AMMAN/GENEVA (Reuters) - More than 60,000 people have died in the Syrian uprising and civil war, the United Nations said on Wednesday, dramatically raising the death toll in a struggle that shows no sign of ending.

Dozens were killed in a Damascus suburb when a government air strike turned a petrol station into an inferno, incinerating drivers who had rushed there for a rare chance to fill their tanks, activists said.

"I counted at least 30 bodies. They were either burnt or dismembered," said Abu Saeed, an activist who arrived at the area an hour after the raid occurred at 1:00 PM (1100 GMT) in Muleiha, a suburb on the eastern edge of the capital.

U.N. Human Rights Commissioner Navi Pillay said in Geneva that researchers cross-referencing seven sources over five months of analysis had listed 59,648 people killed in Syria between March 15, 2011 and November 30, 2012.

"The number of casualties is much higher than we expected and is truly shocking," she said. "Given that there has been no let-up in the conflict since the end of November, we can assume that more than 60,000 people have been killed by the beginning of 2013."

There was no breakdown by ethnicity or information about whether the dead were rebels, soldiers or civilians. There was also no estimate of an upper limit of the possible toll.

Previously, the Syrian Observatory for Human Rights monitoring group, had put the toll at around 45,000 confirmed dead, but said the real number was likely to be much higher.

FATAL RUSH FOR PETROL

Mulaiha, the target of Wednesday's air strike, is a residential and industrial area in the eastern Ghouta region of Damascus that also houses a Syrian air defense base.

The activists said rockets were fired from the base at the petrol station and a nearby residential area after the air raid.

"Until the raid, Muleiha was quiet. We have been without petrol for four days and people from the town and the countryside rushed to the station when a state consignment came in," Abu Fouad, another activist at the scene, said by phone.

President Bashar al-Assad's forces control the center of the capital, while rebels and their sympathizers hold a ring of southern and eastern suburbs that are often hit by air strikes.

Video footage taken by activists showed the body of a man in a helmet still perched on a motorcycle amid flames engulfing the scene. Another man was shown carrying a dismembered body.

The video could not be verified. The government bars access to the Damascus area to most international media.

The pro-opposition Syrian Observatory for Human Rights said a separate air strike killed 12 members of a family, most of them children, in Moadamiyeh, a southwestern area near the center of Damascus where rebels have fought for a foothold.

The Syrian conflict began in March 2011 with peaceful protests against four decades of Assad family rule but turned into an armed revolt after months of government repression.

Insurgents trying to topple Assad see his air power as their main threat. They hold swathes of eastern and northern provinces, as well as some outlying parts of Damascus, but have been unable to protect their territory from relentless attack by helicopters and jets.

In the north, rebels, some from Islamist units, attacked the Afis military airport near Taftanaz air base, firing machineguns and mortars at helicopters on the ground to try and make a dent in Assad's air might, the Observatory said.

The al Qaeda-linked al-Nusra Front, Ahrar al-Sham Brigade and other units in northwestern Idlib province were attacking the base, which is near the main north-south highway linking Damascus to Aleppo, Syria's biggest city, the Observatory said.

In recent months, rebel units have besieged military bases, especially along the highway, Syria's main artery.

The Observatory's director, Rami Abdelrahman, said the attack was the latest of several attempts to capture the base. A satellite image of the airport shows more than 40 helicopter landing pads, a runway and aircraft hangars.

Syrian state media gave no immediate account of the Damascus air strikes or the fighting in the north.

"FOR GOD'S EYES"

Both sides have been accused of carrying out atrocities in the 21-month-old conflict, but the United Nations says the government and its allies have been more culpable.

In the latest evidence of atrocities, Internet video posted by Syrian rebels shows armed men, apparently fighters loyal to Assad, stabbing two men to death and stoning them with concrete blocks in a summary execution lasting several minutes.

Reuters could not verify the provenance of the footage or the identity of the perpetrators and their victims. The video was posted on Tuesday but it was not clear where or when it was filmed. However it does clearly show a summary execution and torture, apparently being carried out by government supporters.

At one point, one of the perpetrators says: "For God's eyes and your Lord, O Bashar," an Arabic incantation suggesting actions being carried out in the leader's name.

The video was posted on YouTube by the media office of the Damascus-based rebel First Brigade, which said it had been taken from a captured member of the shabbiha pro-government militia.

The perpetrators show off for the camera, smiling for close-up shots, slicing at the victims' backs, then stabbing them and bashing them with large slabs of masonry.

In Damascus, Assad's forces fired artillery and mortars at the eastern districts of Douma, Harasta, Irbin and Zamlaka, where rebels are active, activists living there said.

Syria's civil war is the longest and deadliest conflict to emerge from uprisings that began sweeping the Arab world in 2011 and has developed a significant sectarian element.

Rebels, mostly from the Sunni Muslim majority, confront Assad's army and security forces, dominated by his Shi'ite-derived Alawite sect, which, along with some other minorities, fears revenge if he falls.

U.N.-led diplomatic peace efforts have stumbled. Western and many Sunni Arab states demand Assad's immediate removal, an idea resisted by Russia, China and Syria's Shi'ite ally Iran.

The rebels say they will not negotiate unless Assad, who has vowed to fight to the death, leaves power.

More than 110 people, including at least 31 of Assad's soldiers and militiamen, were killed in Syria on the first day of 2013, according to the Observatory, which tracks the conflict from Britain using a network of contacts inside the country.

(Additional reporting by Oliver Holmes in Beirut; Writing by Peter Graff; Editing by Alistair Lyon)

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US manufacturing rebounds in December

WASHINGTON: US manufacturing activity expanded slightly in December after contracting the previous month, the ISM monthly survey showed on Monday.

The Institute for Supply Management's manufacturing sector index rose to 50.7 last month from 49.5 in November, with 50 the break-even line between growth and contraction.

The index has hovered around that line for the past six months, the ISM said, reflecting weakness in both US and global economic growth.

Only seven of 18 manufacturing industries covered in the ISM survey actually reported growth in the month, and overall production growth slowed.

But the employment sub-index rose to 52.7 from 48.4, showing the industry returned to hiring at a modest clip in December.

- AFP/de

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Link ration cards to Aadhar: HC to Maharashtra govt

MUMBAI: The Bombay High Court has suggested to the state government to consider linking ration cards with Aadhar cards to tackle the menace of bogus and duplicate ration cards

"Aren't two years enough to unravel the mystery of bogus ration cards?" asked a division bench of Justice A M Khanwilkar and Justice R D Dhanuka. Will it not be a prudent approach in the matter to make it compulsory to produce the Aadhar card for issuing a new ration card? Why is the government not considering this? Unless you put a verification process in place, you cannot track duplicate or bogus ration cards.''

The state's claim that it was short staffed failed to impress the court. "Link everything to the Aadhar card scheme and make one team to run it. No great change is necessary. The state will have to only link both the cards via a software," said the judges.

The court was hearing a PIL about bogus ration cards in a village, but its scope was widened to include the whole state. Following a December 2010 order, the government carried out a state-wide exercise. The stat detected and cancelled 53.39 lakh ineligible cards during the special campaign. The court had sought action against government officers who issued the cards.

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Brain image study: Fructose may spur overeating

This is your brain on sugar — for real. Scientists have used imaging tests to show for the first time that fructose, a sugar that saturates the American diet, can trigger brain changes that may lead to overeating.

After drinking a fructose beverage, the brain doesn't register the feeling of being full as it does when simple glucose is consumed, researchers found.

It's a small study and does not prove that fructose or its relative, high-fructose corn syrup, can cause obesity, but experts say it adds evidence they may play a role. These sugars often are added to processed foods and beverages, and consumption has risen dramatically since the 1970s along with obesity. A third of U.S. children and teens and more than two-thirds of adults are obese or overweight.

All sugars are not equal — even though they contain the same amount of calories — because they are metabolized differently in the body. Table sugar is sucrose, which is half fructose, half glucose. High-fructose corn syrup is 55 percent fructose and 45 percent glucose. Some nutrition experts say this sweetener may pose special risks, but others and the industry reject that claim. And doctors say we eat too much sugar in all forms.

For the study, scientists used magnetic resonance imaging, or MRI, scans to track blood flow in the brain in 20 young, normal-weight people before and after they had drinks containing glucose or fructose in two sessions several weeks apart.

Scans showed that drinking glucose "turns off or suppresses the activity of areas of the brain that are critical for reward and desire for food," said one study leader, Yale University endocrinologist Dr. Robert Sherwin. With fructose, "we don't see those changes," he said. "As a result, the desire to eat continues — it isn't turned off."

What's convincing, said Dr. Jonathan Purnell, an endocrinologist at Oregon Health & Science University, is that the imaging results mirrored how hungry the people said they felt, as well as what earlier studies found in animals.

"It implies that fructose, at least with regards to promoting food intake and weight gain, is a bad actor compared to glucose," said Purnell. He wrote a commentary that appears with the federally funded study in Wednesday's Journal of the American Medical Association.

Researchers now are testing obese people to see if they react the same way to fructose and glucose as the normal-weight people in this study did.

What to do? Cook more at home and limit processed foods containing fructose and high-fructose corn syrup, Purnell suggested. "Try to avoid the sugar-sweetened beverages. It doesn't mean you can't ever have them," but control their size and how often they are consumed, he said.

A second study in the journal suggests that only severe obesity carries a high death risk — and that a few extra pounds might even provide a survival advantage. However, independent experts say the methods are too flawed to make those claims.

The study comes from a federal researcher who drew controversy in 2005 with a report that found thin and normal-weight people had a slightly higher risk of death than those who were overweight. Many experts criticized that work, saying the researcher — Katherine Flegal of the Centers for Disease Control and Prevention — painted a misleading picture by including smokers and people with health problems ranging from cancer to heart disease. Those people tend to weigh less and therefore make pudgy people look healthy by comparison.

Flegal's new analysis bolsters her original one, by assessing nearly 100 other studies covering almost 2.9 million people around the world. She again concludes that very obese people had the highest risk of death but that overweight people had a 6 percent lower mortality rate than thinner people. She also concludes that mildly obese people had a death risk similar to that of normal-weight people.

Critics again have focused on her methods. This time, she included people too thin to fit what some consider to be normal weight, which could have taken in people emaciated by cancer or other diseases, as well as smokers with elevated risks of heart disease and cancer.

"Some portion of those thin people are actually sick, and sick people tend to die sooner," said Donald Berry, a biostatistician at the University of Texas MD Anderson Cancer Center in Houston.

The problems created by the study's inclusion of smokers and people with pre-existing illness "cannot be ignored," said Susan Gapstur, vice president of epidemiology for the American Cancer Society.

A third critic, Dr. Walter Willett of the Harvard School of Public Health, was blunter: "This is an even greater pile of rubbish" than the 2005 study, he said. Willett and others have done research since the 2005 study that found higher death risks from being overweight or obese.

Flegal defended her work. She noted that she used standard categories for weight classes. She said statistical adjustments were made for smokers, who were included to give a more real-world sample. She also said study participants were not in hospitals or hospices, making it unlikely that large numbers of sick people skewed the results.

"We still have to learn about obesity, including how best to measure it," Flegal's boss, CDC Director Dr. Thomas Frieden, said in a written statement. "However, it's clear that being obese is not healthy - it increases the risk of diabetes, heart disease, cancer, and many other health problems. Small, sustainable increases in physical activity and improvements in nutrition can lead to significant health improvements."

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Online:

Obesity info: http://www.cdc.gov/obesity/data/trends.html

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

Mike Stobbe can be followed at http://twitter.com/MikeStobbe

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Obama Hails 'Cliff' Deal, Warns of Next Fiscal Fight

Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.

"This is one step in the broader effort to strengthen our economy for everybody," Obama said.

Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."

But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.

"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."

An hour after his remarks, Obama boarded Air Force One to rejoin his family in Hawaii, where they have been since before Christmas.

AP Photo/Charles Dharapak

House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.

A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.

The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.

The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.

But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.

The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.

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Syrian government forces go on attack on first day of year

BEIRUT (Reuters) - Government war planes bombed opposition-held areas of Syria and President Bashar al-Assad's forces and rebels fought on the outskirts of the capital Damascus on New Year's Day on Tuesday.

A year ago, many diplomats and analysts predicted Assad would leave power in 2012. But despite international pressure and rebel gains, he has proved resilient.

His inner circle remains largely intact and retains control of the armed forces, even if it relies on air strikes and artillery power to hold back the rebels fighting to overthrow him.

The air force pounded Damascus's eastern suburbs on Tuesday and rebel-held areas of Aleppo, the second city and commercial capital, as well as several rural towns and villages, opposition activists said.

Opposition video posted on the Internet showed plumes of grey smoke rising in Irbin, in the east of Damascus.

Residents of the capital began the new year to the boom of artillery hitting southern and eastern outskirts, which form a rebel-held arc around the capital. The heart of the city is still firmly under government control.

In the city center, soldiers manning checkpoints fired celebratory gunfire at midnight although the streets were largely deserted.

"How can they celebrate? There is no 'Happy New Year'," Moaz al-Shami, an opposition activist who lives in central Mezzeh district, said over Skype.

He said rebel fighters attacked one checkpoint in Berzeh district on Tuesday morning. Opposition groups said mortar bombs hit the southwest suburb of Daraya, which the army attacked on Monday to retake it from rebels.

An estimated 45,000 people have been killed in the conflict, which started in early 2011 with peaceful protests demanding democratic reforms but turned into an armed uprising after months of attacks on protesters by security forces.

A resident of the central city of Homs said artillery shelling had smacked into its Old City on Tuesday.

Homs lies on the north-south highway and parts of the ancient city have been leveled during months of clashes. Government forces ousted rebels from Homs early last year but militants have slowly crept back in.

"The Old City is under siege. There is shelling from all sides," said the resident, who asked to remain anonymous.

A video posted on YouTube showed the bodies of three boys who activists said were arrested at a government checkpoint on their way home from school in Damascus' Jobar suburb on Sunday.

One of the boys, who appear to have barely reached adolescence, has his hands tied behind his back. Another had a large open wound on his throat.

Reuters could not independently verify the reports and the footage.

The opposition-linked Syrian Observatory for Human Rights, a British-based monitoring group, reported 160 people killed on the final day of 2012, including at least 37 government troops.

BOMBARDMENT

The civil war in Syria is the longest and deadliest of the conflicts that rose out of the uprisings that have swept through the Arab world over the past two years.

Many Sunni Muslims, the majority in Syria, back the rebellion, while Assad, a member of the Shi'ite-derived Alawite minority sect, is backed by some minorities who fear revenge if he falls. His family has ruled Syria since his father seized power in a coup 42 years ago.

Assad's forces now rely more on air strikes and artillery bombardment rather than infantry. Residential areas where rebels are based have been targeted, killing many civilians.

Rebels have taken swathes of the northern mountains and eastern desert but have struggled to hold cities, saying they are defenseless against Assad's Soviet-equipped air force.

Diplomatic efforts to end the war have failed, with the rebels refusing to negotiate unless Assad leaves power and the president pledging to fight until death. Western and Arab states have called for him to go. He is backed by Russia and Iran.

In the last days of 2012, international mediator Lakhdar Brahimi called on countries to push the sides to talk, saying Syria faced a choice of "hell or the political process".

One Damascus resident, who asked not to be identified for security reasons, said the usual New Year's Eve crowds were absent from the increasingly isolated capital.

"There was hardly anyone on the streets, no cars, no pedestrians. Most restaurants, cafes and bars were empty," she said.

Some young people gathered at three bars in the old city.

"There was music but nobody was dancing. They just sat there with a drink in their hands and smoking. I don't think I saw one person smile," she said.

The midnight gunfire caused alarm.

"It was very scary. No one knew what was going on. People got very nervous and started making phone calls. But then I discovered that at least on my street, the gunfire was celebratory."

(Editing by Peter Graff and Angus MacSwan)

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