North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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Keppel Corp's net profit falls 22% on-year in Q4

SINGAPORE: Falling margins from building oil rigs has hit the bottomline of Keppel Corp.

Net profit for the world's leading rig builder fell 22 per cent on-year to S$305 million in the fourth quarter last year.

Still, full year profit for the conglomerate came in 15 per cent to S$2.24 billion.

Despite lower net profit in the three months ended Dec 31, Keppel Corp still declared a final dividend of 27 cents per share.

As part of its 45th anniversary, Keppel Corp is handing out more goodies to its shareholders.

The company has proposed to distribute one Keppel REIT unit for every five Keppel Corp shares.

That is about 27.4 cents per share based on Keppel REIT's closing price of S$1.37 on Thursday.

Together with the interim dividend of 18 cents, total distribution for 2012 will be 72.4 cents per share.

Keppel Corp said the lower net profit was partly due to lower contributions from its offshore and marine unit.

Offshore and Marine's contribution was 12 per cent lower from a higher base in 2011 when margins were at record highs. It contributes to half of Keppel Corp's net profits.

"Keen rivalry from Chinese and Korean yards have suppressed prices and squeezed margins on newbuilds," said Choo Chiau Beng, chief executive officer at Keppel Corp. "In 2013, we will be completing a record of 22 newbuild units."

Analysts remained upbeat of Keppel's prospects going forward.

They say their financial results still outperformed market expectations.

Keppel Corp expects crude oil prices to stay above US$100 per barrel, supporting the need for more global exploration and production.

But global challenges like the slower US economy and the eurozone crisis from last year will continue to pose uncertainties for Keppel Corp's business.

Keppel Corp's property arm, led by the listed Keppel Land, boosted the group's earnings.

Net profit for the property division was 2.5 times higher than in 2011, offsetting the lower earnings from business in the offshore and marine, and infrastructure.

But Keppel Corp does not expect its property arm to perform better this year.

This is because recognition from sales of completed units at its development Reflections at Keppel Bay is expected to be lower this financial year.

- CNA/xq

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Union home minister Sushilkumar Shinde should be tried for sedition: Balbir Punj

BHOPAL: Journalist and Rajya Sabha BJP MP Balbir Punj on Thursday said that Union home minister Sushilkumar Shinde should be charged with sedition and tried for treason for his statement linking BJP-RSS to 'Hindu terrorism' at the recently held Jaipur Congress Conclave. Punj was in the Madhya Pradesh capital on Thursday to lead the BJP's protest here seeking Shinde's sacking from the post of the nation's home minister.

Blinded by vote-bank politics, the home minister has made a statement favouring Pakistan and feeding the anti-India propaganda machine. The home minister of the country making the statement in the presence of the entire UPA government is a dishonour to India. It is internationally known that terror is bred in Pakistan and exported to India,'' the Rajya Sabha MP said. Pakistan has so far denied having terror training camps in that country. Sushil Shinde spoke like he is the home minister of Pakistan and not of India. Going by the gravity of his crime, the government must try him for treason under the various sections of IPC,'' he added.

Attacking the UPA-Centre on its Hindu terror propaganda, Punj said that the NIA was arresting Indian nationals in connection with the Samjhauta Express blasts while the United States department of Treasury in a press note issued on July 1, 2009 specifically named Arif Qasmani, chief co-ordinator of the Lashkar-e-Tayyiba as the facilitator of the July 2006 Mumbai suburban train blasts and the February 2007 Samjhauta Express blasts.

While the government made a series of arrests to prove Hindus as terrorists, the UPA has done nothing to extradite Arif Qasmani and bring him to justice for the Samjhauta blasts. Instead they built a case to connect Hindus to terror to favour their political motives,'' Balbir Punj argued.

Punj quoted the US department of treasury press note which said: "Arif Qasmani is the chief coordinator for the Lashkar-e-Tayyiba's dealings with outside organisations and has provided significant support for LeT terrorist operations. Qasmani has worked with LeT to facilitate terrorist attacks, including the July 2006 train bombing in Mumbai, India and the February 2007 Samjhauta Express bombing in Panipat, India.''

The US treasury department press release mentioned how Qasmani was being funded by Dawood Ibrahim and how he provided logistics support to the Al Qaida.

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Burger King drops supplier linked to horsemeat

LONDON (AP) — British and Irish burger fans could face a Whopper shortage. Burger King says it has stopped buying beef from an Irish meat processor whose patties were found to contain traces of horsemeat.

The fast food chain said in a statement Thursday that it had dropped Silvercrest Foods as a supplier for its U.K. and Ireland restaurants as a "voluntary and precautionary measure."

Last week Silvercrest, which is owned by ABP Food Group, shut down its production line and recalled 10 million burgers from supermarket shelves in Britain and Ireland after horse DNA was found in some beef products.

Burger King said the decision to drop the supplier "may mean that some of our products are temporarily unavailable." It stressed that "this is not a food safety issue."

The presence of horsemeat in beef is a sensitive issue in Britain and Ireland, which do not have a tradition of eating horses. The British tabloid The Sun reported the Burger King story under the headline "Shergar King," a reference to a famous racehorse.

Products from another Irish firm and one in Britain also were contaminated by horsemeat. Most had only small traces, but one burger of a brand sold by the British supermarket chain Tesco contained 29 percent horsemeat.

Irish food officials say an ingredient imported from an unspecified European country and used as filler in cheap burgers is the likely source of the horsemeat contamination.

Burger King says its patties are made from 100 percent beef.

Officials say the horsemeat poses no risk to human health, but the episode has raised food security worries.

More concern arose Thursday when lawmaker Mary Creagh, environment spokeswoman for Britain's opposition Labour Party, said that several horses slaughtered in the country last year had tested positive for phenylbutazone, an anti-inflammatory drug given to horses that can cause cancer in humans.

"It is possible that those animals entered the human food chain," she said.

The Food Standards Agency confirmed that meat from five horses had tested positive for the drug, but said none had been approved for sale in Britain. It said the relevant food safety authorities were informed in cases where the meat was exported to other countries.

The agency said no horsemeat in the current scandal contained phenylbutazone.

Very little horsemeat is sold in Britain but the country sends thousands of horses a year abroad to be killed for meat.

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N. Korea Vows More Nuke Tests Targeting U.S.

In a bellicose statement singling out the United States as the "sworn enemy" of the Korean people, North Korea today announced plans for a third nuclear test and continued rocket launches.

The move is seen as a disappointment to those who hoped the country's new leader, Kim Jong-Un, might take a less aggressive path than his predecessor and father, Kim Jong-il.

It is also seen as a direct challenge to President Obama and South Korea's newly elected president, Park Geun-hye, who takes office next month.

The statement from North Korea's National Defense Commission read:

"Settling accounts with the U.S. needs to be done with force, not with words as it regards jungle law as the rule of its survival."

North Korea Launches Missile After 4 Failed Attempts Watch Video

The renewed threats come in response to the U.S. backed resolution tightening sanctions against North Korea after its December rocket launch.

At that time, North Korea repeatedly insisted that the launch was simply part of its peaceful space program. The recent statement made no mention of that.

It read: "We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States."

South Korean officials analyzed debris from the December launch that, they say, indicates North Korea built and tested crucial components for a missile that can fly further than 6,200 miles.

Analysts say that preparations at the Pungyee test site in northeastern North Korea are underway and that a new underground test could take place on short notice.

Within the international monitoring community it is not believed that North Korea currently has the capability to launch a long-range rocket with the capacity to reach the United States or the technology to mount a nuclear warhead on a long-range missile. But the U.S. is not pleased with North Korea's plans. Glyn Davies, the top U.S. envoy to the region, said in Seoul, "We hope they don't do it. We call on them not to do it."

China, North Korea's main ally in the region, is also urging restraint. China backed the U.S. resolution at the United Nations and today the Foreign Ministry cautioned North Korea not to take further steps to increase tension.

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Cameron promises Britons straight choice on EU exit

LONDON (Reuters) - Prime Minister David Cameron promised on Wednesday to give Britons a referendum choice on whether to stay in the European Union or leave if he wins an election in 2015, placing a question mark over Britain's membership for years.

Cameron ended months of speculation by announcing in a speech the plan for a vote sometime between 2015 and the end of 2017, shrugging off warnings that this could imperil Britain's economic prospects and alienate its biggest trading partner.

He said the island nation, which joined the EU's precursor European Economic Community 40 years ago, did not want to retreat from the world, but public disillusionment with the EU was at "an all-time high".

"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said. His Conservative party will campaign for the 2015 election promising to renegotiate Britain's EU membership.

"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."

The speech firmly ties Cameron to an issue that was the bane of a generation of Conservative leaders. In the past, he has avoided partisan fights over Europe, the undoing of the last two Conservative prime ministers, John Major and Margaret Thatcher.

Britain would seek to claw back powers from Brussels, he said, a proposal that will be difficult to sell to other European countries. London will do an "audit" to determine which powers Brussels has that should be delegated to member states.

Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.

The response from EU partners was predictably frosty. French Foreign Minister Laurent Fabius quipped: "If Britain wants to leave Europe we will roll out the red carpet for you," echoing Cameron himself, who once used the same words to invite rich Frenchmen alienated by high taxes to move to Britain.

German Foreign Minister Guido Westerwelle said his country wanted Britain to remain a full EU member, but London could not expect to pick and choose the aspects of membership it liked.

Business leaders have warned that the prospect of years of doubt over Britain's EU membership would damage the investment climate.

"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos.

"This is a political decision. This is not an economic decision. This isn't good news. You added another reason why people will postpone investment decisions."

The speech also opens a rift with Cameron's junior coalition partners, the Liberal Democrats. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.

And even allies further afield are wary: the United States has said it wants Britain to remain inside the EU with "a strong voice".

EUROSCEPTICS THRILLED

Cameron has been pushed into taking such a strong position in part by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in opinion polls, mainly at the expense of the Conservatives.

"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.

Eurosceptics in Cameron's party were thrilled by the speech. Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".

Whether Cameron will ever hold the referendum remains as uncertain as the Conservatives' chances of winning the next election in 2015.

They trail the opposition Labour party in opinion polls, and the coalition government is grappling with a stagnating economy as it pushes through public spending cuts to reduce Britain's large budget deficit.

Cameron said he would prefer Britain, the world's sixth biggest economy, to remain inside the 27-nation EU. As long as he secured the reforms he wants, he would campaign for Britain to stay inside the EU "with all my heart and soul".

But he also made clear he believed the EU must be radically reformed. It was riskier to maintain the status quo than to change, he said.

"The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.

"WAFER THIN" CONSENT

The euro zone debt crisis was forcing the bloc to change, and Britain would fight to make sure new rules were fair to countries that didn't use the common currency, he said. Britain is the largest of the 10 EU members that do not use the euro.

Democratic consent for the EU in Britain was now "wafer thin", he said, reflecting the results of opinion polls that show a slim majority would vote to leave the bloc.

"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union," said Cameron. "But the question mark is already there: ignoring it won't make it go away."

Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success."

"I want to be the prime minister who confronts and gets the right answer for Britain on these kind of issues," he said.

It is nearly 40 years since British voters last had a say in a referendum on Britain's membership of the European club. A 1975 vote saw just over 67 percent opt to stay inside with nearly 33 percent wanting to leave.

(Additional reporting by Paul Taylor in Davos and Alexandra Hudson in Berlin; Editing by Guy Faulconbridge and Peter Graff)

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Japan presses Algeria for answers as toll hits nine

ALGIERS: A senior Japanese official met Algeria's prime minister on Wednesday to press for an explanation of the gas plant siege, as Tokyo confirmed the deaths of two more nationals, taking its toll to nine.

Senior Vice Foreign Minister Shunichi Suzuki arrived aboard a government jet that is to repatriate the bodies of those known to have been killed in the hostage crisis, along with the seven Japanese who survived.

Tokyo announced late Wednesday that it knew for sure that nine Japanese were killed after Islamist gunmen overran the desert facility. One Japanese citizen remains unaccounted for.

"Unfortunately, we have been able to confirm two more deaths," said Chief Cabinet Secretary Yoshihide Suga. "The Japanese government expresses sincere condolences to the families and people concerned."

"The use of violence cannot be tolerated for any reason. We firmly condemn acts of terror," he said adding the government would do its utmost to confirm the fate of the final missing person.

Seventeen Japanese were at the facility in In Amenas when jihadists struck last Wednesday at the start of a four-day siege that left dozens of foreigners dead. Seven of them made it to safety.

Suzuki carried a letter to Algerian President Abdelaziz Bouteflika from Japan's Prime Minister Shinzo Abe, Suga told reporters in Tokyo earlier.

As well as Prime Minister Abdelmalek Saleki, Suzuki also met Foreign Minister Mourad Medelci, Japan's Kyodo News reported, citing Tokyo's foreign ministry.

Japan has asked Algeria to fully investigate events at the gas plant and exactly how individuals died, Suga said in Tokyo.

"Algeria has promised to cooperate as much as possible," he said.

Algeria has said 37 foreigners of eight different nationalities and an Algerian were killed in the siege, which ended on Saturday.

Several people are still missing and the bodies of others are so badly charred that they have not been identified.

Wednesday's visit came as it emerged that Britain, Japan, the United States and other countries whose nationals were caught up in the events at the In Amenas plant issued a joint demarche to Algeria last Friday.

A demarche is a formal diplomatic move in which a country's stance is conveyed in person -- rather than by note -- to another government.

In a conference telephone call, vice foreign minister Minoru Kiuchi told foreign minister Medelci that Tokyo wanted Algiers to do all it could to protect captives.

"Japan is strongly concerned about acts that put the lives of the hostages at risk, and it is regrettable that the Algerian government pressed military rescue operations," he said, according to the foreign ministry.

Japan was among the more forthright of nations as the hostage crisis unfolded, summoning Algiers' ambassador to demand answers and to push for military restraint as armed forces surrounded the plant.

The Japanese plane's arrival in Algiers came as Tokyo announced it was shutting its embassy in neighbouring Mali, evacuating staff and urging its nationals there to leave because of the deteriorating security situation.

The kidnappers claimed they launched their attack in protest at Algeria's complicity in a French military campaign against Islamists in Mali.

The Japanese death toll in Algeria -- the highest in a terror attack since Al-Qaeda crashed airliners into New York's Twin Towers when 24 Japanese died -- has shaken a country not accustomed to its citizens being made targets abroad.

There has been blanket media coverage of events half a world away and anguished demands for more to be done to protect Japanese working in trouble spots, including beefing up spy networks.

Kyodo on Wednesday said Suga indicated Tokyo's willingness to consider increasing the number of defence attaches at Japanese embassies to strengthen the country's ability to gather information.

"I am aware of the need. We need to think about the most effective (crisis-response) measures," Suga said.

-AFP/ac

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Congress backtracks on Telangana deadline

NEW DELHI/HYDERABAD: Going back on its word to announce a solution to the Telangana problem by Jan 28, the Congress party Wednesday said "one month does not mean 30 days".

Dashing hopes of Telangana leaders, including those from its own ranks who were expecting a decision to carve out a Telangana state, the ruling party said a decision on the vexatious issue was not likely to be made by Jan 28.

"I don't think we should see it in a tight compartment. One month does not mean one month or 30 days. Tomorrow sometimes does not mean tomorrow morning," Congress general secretary Ghulam Nabi Azad said.

"One week does not mean seven days. Sometime it can be two weeks. This is a very important issue which we have to solve. We have been trying hard to resolve it as early as possible," said Azad, who is in charge of party affairs in Andhra Pradesh.

Azad's statement came after he and Union home minister Sushilkumar Shinde, minister of overseas Indian affairs Vaylar Ravi and Lok Sabha member Ahmed Patel met Congress president Sonia Gandhi.

Azad clarified that after the Dec 28 all-party meeting on Telangana, Shinde had only stated that the government would try to find a solution in a month.

The development came even as Telangana leaders, including state ministers and MPs, were camping in the national capital to lobby with the central leadership to keep its word and take a positive decision by Jan 28.

Some Congress leaders from Telangana said they were shocked by Azad's statement while others hoped that a decision would come anytime after Jan 28. Manda Jagannadham, a Congress MP from the region, said Azad's remarks would give credence to allegations that Congress always betrayed the cause of Telangana.

Earlier, after camping in the national capital for two days to lobby against division of the state, Congress leaders of Seemandhra (Rayalaseema and Andhra regions) had met President Pranab Mukherjee, Prime Minister Manmohan Singh and Congress leaders to impress upon them the need to keep the state united.

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Foes of NYC soda size limit doubt racial fairness

NEW YORK (AP) — Opponents of the city's limit on the size of sugary drinks are raising questions of racial fairness alongside other complaints as the novel restriction faces a court test.

The NAACP's New York state branch and the Hispanic Federation have joined beverage makers and sellers in trying to stop the rule from taking effect March 12. With a hearing set Wednesday, critics are attacking what they call an inconsistent and undemocratic regulation, while city officials and health experts defend it as a pioneering and proper move to fight obesity.

The issue is complex for the minority advocates, especially given obesity rates that are higher than average among blacks and Hispanics, according to the federal Centers for Disease Control. The groups say in court papers they're concerned about the discrepancy, but the soda rule will unduly harm minority businesses and "freedom of choice in low-income communities."

The latest in a line of healthy-eating initiatives during Mayor Michael Bloomberg's administration, the beverage rule bars restaurants and many other eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces. Violations could bring $200 fines; the city doesn't plan to start imposing those until June.

The city Board of Health OK'd the measure in September. Officials cited the city's rising obesity rate — about 24 percent of adults, up from 18 percent in 2002 — and pointed to studies linking sugary drinks to weight gain. Care for obesity-related illnesses costs more than $4.7 billion a year citywide, with government programs paying about 60 percent of that, according to city Health Commissioner Dr. Thomas Farley.

"It would be irresponsible for (the health board) not to act in the face of an epidemic of this proportion," the city says in court papers. The National Association of Local Boards of Health and several public health scholars have backed the city's position in filings of their own.

Opponents portray the regulation as government nagging that turns sugary drinks into a scapegoat when many factors are at play in the nation's growing girth.

The American Beverage Association and other groups, including movie theater owners and Korean grocers, sued. They argue that the first-of-its-kind restriction should have gone before the elected City Council instead of being approved by the Bloomberg-appointed health board.

Five City Council members echo that view in a court filing, saying the Council is "the proper forum for balancing the city's myriad interests in matters of public health." The Bloomberg administration counters that the health board, made up of doctors and other health professionals, has the "specialized expertise" needed to make the call on limiting cola sizes.

The suit also argues the rule is too narrow to be fair. Alcohol, unsweetened juice and milk-based drinks are excluded, as are supermarkets and many convenience stores — including 7-Eleven, home of the Big Gulp — that aren't subject to city health regulations.

The NAACP and the Hispanic Federation, a network of 100 northeastern groups, say minority-owned delis and corner stores will end up at a disadvantage compared to grocery chains.

"This sweeping regulation will no doubt burden and disproportionally impact minority-owned businesses at a time when these businesses can least afford it," they said in court papers. They say the city should focus instead on increasing physical education in schools.

During Bloomberg's 11-year tenure, the city also has made chain restaurants post calorie counts on their menus and barred artificial trans fats in french fries and other restaurant food.

In general, state and local governments have considerable authority to enact laws intended to protect people's health and safety, but it remains to be seen how a court will view a portion-size restriction, said Neal Fortin, director, Institute for Food Laws and Regulations at Michigan State University.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Te'o Tells Couric He Briefly Lied About Girlfriend

Manti Te'o briefly lied to the media and the public after discovering his online girlfriend did not exist and was a part of an elaborate hoax, he admitted in an exclusive interview with ABC News' Katie Couric.

The star Notre Dame linebacker, who has been hounded by the reporters since the story broke Jan. 16, told Couric in a taped interview Tuesday that he was not lying up until December. Te'o said he was duped into believing his online girlfriend, Lennay Kekua, died of cancer.

"You stuck to the script. And you knew that something was amiss, Manti," Couric said.

Te'o found out that Kekua was a hoax on Dec. 6, but on Dec. 8 he again publicly mentioned his girlfriend. The remark came as Te'o was a finalist for the Heisman Trophy, the award for the best college football player in the country. Te'o was eventually a runner-up for the trophy.

"Katie, put yourself in my situation. I, my whole world told me that she died on Sept. 12. Everybody knew that. This girl, who I committed myself to, died on Sept. 12," Te'o said.

"Now I get a phone call on Dec. 6, saying that she's alive and then I'm going be put on national TV two days later. And to ask me about the same question. You know, what would you do?" Te'o said.

Man Allegedly Behind the Manti Te?o Dead Girlfriend Hoax Watch Video

See more exclusive previews tonight on "World News With Diane Sawyer" and "Nightline." Watch Katie Couric's interview with Manti Te'o and his parents Thursday. Check your local listings or click here for online station finder.

Te'o, 21, was joined by his parents, Brian and Ottilia, in the interview.

"Now many people writing about this are calling your son a liar. They are saying he manipulated the truth, really for personal gain," Couric said to Te'o's father.

"People can speculate about what they think he is. I've known him 21 years of his life. And he's not a liar. He's a kid," Brian Te'o said with tears in his eyes.

Click here for a who's who in the Manti Te'o case.

Diane O'Meara told NBC's "Today" show Tuesday that she was used as the "face" of the Twitter account of Manti Te'o's online girlfriend without her knowledge or consent.

O'Meara said that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating Kekua.

"I've never met Manti Te'o in my entire life. I've never spoke with him. I've never exchanged words with him," O'Meara said Tuesday.

The 23-year-old marketing executive went to high school in California with Tuiasosopo, but she says they're not close. Tuiasosopo called to apologize the day Deadspin.com broke the hoax story, she said.

Timeline of Manti Te'o girlfriend hoax story

In an interview with ESPN last week, Te'o said he had received a Twitter message from Tuiasosopo apologizing for the hoax.

The Hawaiian also spoke to Tuiasosopo on the phone the day the Deadspin report came out, according to ESPN.com. He found out that "two guys and a girl are responsible for the whole thing," he said.

But he did not know the identities of the other individuals involved, other than the man he says was Tuiasosopo.

Tuiasosopo, a 22-year-old resident of California, has not admitted involvement publicly. Tuiasosopo graduated from Paraclete High School in Lancaster, Calif., in 2007 and has posted dozens of videos online signing Christian songs.

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