The Weekly News Digest March 4

WASHINGTON (AP) --The spending cuts are hereto stay if you believe the pub-lic posturing Sunday.

The Senate'sRepublican leader MitchMcConnell called them mod-est. House Speaker JohnBoehner isn't sure the cutswill hurt the economy. TheWhite House's top economicadviser, Gene Sperling, saidthe pain isn't that bad rightnow.

So after months of direwarnings, Washington didn'timplode, government didn'tshut down and the $85 billion budget trigger didn't spelldoom. And no one has yet crafted a politically viable way toroll back those cuts.

"This modest reduction of 2.4 percent in spending overthe next six months is a little more than the averageAmerican experienced just two months ago, when theirown pay went down when the payroll tax holiday expired,"McConnell said.

"I don't know whether it's going to hurt the economy ornot," Boehner said. "I don't think anyone quite understandshow the sequester is really going to work."

And Sperling, making the rounds on the Sunday newsshows, added: "On Day One, it will not be as harmful as itwill be over time."

Both parties cast blame on the other for the automatic,across-the-board spending cuts but gave little guidance onwhat to expect in the coming weeks. Republicans andDemocrats pledged to retroactively undo the cuts but sig-naled no hints as to how that process would start to takeshape. Republicans insisted there would be no new taxesand Democrats refused to talk about any bargain withoutthem.

"That's not going to work," said Sen. Kelly Ayotte, R-N.H. "If we're going to increase revenue again, it's got to goto the debt with real entitlement reform and real tax reformwhen you actually lower rates. ... I'm not going to agree toany more tax increases that are going to go to increasemore government."

Sen. Lindsey Graham, R-S.C., said any tax increaseswere unacceptable.

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H E R E T O S T A Y

"I'm not going to do anymore small deals. I'm notgoing to raise taxes to fixsequestration. We don'tneed to raise taxes to fundthe government," Grahamsaid.

All of this comes aheadof a new, March 27 dead-line that could spell a gov-ernment shutdown and adebt-ceiling clash coming inMay.

Boehner said hischamber would move thisweek to pass a measure to

keep government open through Sept. 30. McConnell said agovernment shutdown was unlikely to come from his sideof Capitol Hill. The White House said it would dodge theshutdown and roll back the cuts, which hit domestic anddefense spending in equal share.

"We will still be committed to trying to find Republicansand Democrats that will work on a bipartisan compromiseto get rid of the sequester," Sperling said.

Senate Democrats and Senate Republicans last weekput forward alternatives that would have avoided the cuts,but each side voted down the others' proposals. The HouseDemocrats proposed an alternative but the HouseRepublicans did not let them vote on it.

House Republicans twice passed alternatives last year.

Obama has phoned lawmakers but it isn't clear to whatend; the White House refused Sunday to release thenames of lawmakers Obama phoned. Boehner andMcConnell said they had a productive meeting with Obamaon Friday, but it didn't yield a deal.

"Well, no one can think that that's been a success forthe president," said Mitt Romney, Obama's unsuccessfulrival in November's election. "He didn't think the sequesterwould happen. It is happening."

Obama and the Republicans have been fighting overfederal spending since the opposition party regained controlof the House of Representatives in the 2010 midterm elec-tions. The budget cuts were designed in 2011 to be so ruth-less that both sides would be forced to find a better deal, butthey haven't despite two years to find a compromise.

President Barack Obama gestures as he speaks to reporters inthe White House briefing room in Washington, Friday, March 1,2013, following a meeting with congressional leaders regardingthe automatic spending cuts.

Circulated Weekly In Florida Volume 002 Issue 9 Established 2012 March 4, 2013

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100 points early Tuesday, reaching an all-timehigh, powered by China's strong economic growth tar-gets and a jump in European retail sales.

Shortly after the opening bell the Dow was tradingat 14,222. It's on track to close above its record of14,164 reached on Oct. 9, 2007. It's up 7.8 percent forthe year.

The Standard & Poor's index rose 11 points to1,536. It's also within striking distance of its own recordof 1,565.

The Nasdaq was up 30 points at 3,212.Asian markets rose as China pledged to stick to

ambitious growth targets for its economy, the world'ssecond largest.

European stocks also jumped because of retailsales in the region rose sharply.

NEW YORK (AP) -- An Obama administra-tion adviser says the White Housebelieves smartphone and tablet usersshould be allowed to unlock their phonesand use the devices on the network oftheir choosing.

In a blog post entitled "It's time to legalizecell phone unlocking," R. David Edelman,White House adviser on Internet, innova-tion and privacy, responded to a petitionabout the issue by saying the administra-tion feels consumers should be allowed tounlock their phones without civil or criminalpenalties, especially if the phones werepurchased secondhand or as gifts.

Edelman says the administration's opinionon the matter also goes for tablets, sincethey are becoming similar to smartphones.

He says the White House will work withthe Federal Communications Commissionto address the issue and will also supportnew legislation.

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SAN DIEGO (AP) -- The California Coastal Commissionon Friday rejected a Navy explosives and sonar trainingprogram off the Southern California coast that critics saidcould harm endangered blue whales and other sea life.

Commissioners meeting in San Diego ruled unanimouslythat the Navy lacked enough information to back up itsargument that the threat to marine mammals would benegligible.

The Navy is expected to ramp up its training in thewaters over the next five years with the war inAfghanistan winding down and the military shifting itsfocus to the Pacific as part of the Obama administration'snational security strategy.

Commissioners said they are concerned the increasedactivity - especially near marine protected areas - couldbe detrimental for endangered mammals such as theblue, fin and beaked whales.

"The Navy needs to understand the significance of theCalifornia coast in relationship to the entire worldbecause we're doing research that will assist future gen-erations," Commissioner Martha McClure told Navy offi-cials before her vote: "I also would like to reiterate that Ibelieve your documentation was absolutely short."

Alex Stone, who directs the Navy's environmental teamon the project, told commissioners that additional marinesafeguards being sought by the panel would limit thetraining program's scope and make it less realistic.

He said the Navy's measures effectively protect sea life -an argument disputed by environmentalists who packedthe hearing.

The panel and the Navy could now seek mediation toiron out their differences - or the Navy could simply

C A L I F R E G U L A T O R S R E J E C T

N A V Y O F F S H O R E T R A I N I N G

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SEOUL, SouthKorea (AP) --North Koreavowed Tuesday tocancel the 1953cease-fire thatended the KoreanWar, citing a U.S.-led push for pun-ishing U.N. sanc-tions over its recentnuclear test andongoing U.S.-South Korean jointmilitary drills.

Without elabo-rating, the KoreanPeople's Army Supreme Command warned of"surgical strikes" meant to unify the dividedKorean Peninsula and of an indigenous, "preci-sion nuclear striking tool." The statement cameamid reports that Washington and North Koreanally Beijing have approved a draft of a U.N.Security Council resolution calling for sanctionsin response to North Korea's Feb. 12 nuclear test.The draft is expected to be circulated at the U.N.this week.

Heated military rhetoric is common fromNorth Korea when tensions rise on the KoreanPeninsula and during U.S.-South Korean wargames, but this latest statement is unusually spe-cific. It threatens to block a communications linebetween North Korea and the United States at theborder village separating the two Koreas, and tonullify the 60-year-old Korean War armisticeagreement on March 11, when two weeks ofU.S.-South Korean military drills will draw10,000 South Korean and 3,500 U.S. forces. Anearlier round of drills between the allies beganearlier this month.

Pyongyang's recent nuclear test and rocketlaunches, and the subsequent call for U.N. pun-ishment, have increased already high animositybetween the North and Washington and Seoul.

The United States and others worry thatNorth Korea's third nuclear test takes it a big stepcloser toward its goal of having nuclear-armedmissiles that can reach America, and condemn itsnuclear and missile efforts as threats to regional

security and adrain on theresources thatcould go to NorthKorea's largelydestitute people.

North Koreasays its nuclearprogram is aresponse to U.S.hostility that datesback to the 1950-53 Korean War,which ended withan armistice, not apeace treaty, leav-ing the Korean

Peninsula still technically in a state of war.

Even amid the tension, however, North Koreahas welcomed high-profile American visitors,including former basketball star Dennis Rodman,known for his piercings and tattoos as much ashis Hall of Fame career with the Detroit Pistonsand Chicago Bulls.

Rodman met the North Korean leader, KimJong Un, called him an "awesome guy" and saidKim wanted President Barack Obama to call him.The trip was criticized for giving the authoritari-an leader a propaganda boost, but Rodman sug-gested "basketball diplomacy" could warm rela-tions. Google's executive chairman, EricSchmidt, made a four-day trip in January, but didnot meet Kim.

North Korean propaganda regularly citesdecades-old, Cold War-era American threats asthe reason for its nuclear efforts and holds thatthe North remains at risk of an unprovokednuclear attack. Washington and others say brinks-manship is the North's true motive for the nuclearpush.

The North's statement called U.S.-SouthKorean military drills a "dangerous nuclear wartargeted at us."

"We aim to launch surgical strikes at any timeand any target without being bounded by thearmistice accord and advance our long-cherishedwish for national unification," the statement said.

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U.S. Ambassador to China Gary Locke, center, is mobbed by journalists ashe attends the opening session of the annual National People's Congressat the Great Hall of the People in Beijing Tuesday, March 5, 2013. TheUnited States and China have reached an agreement on a new draft sanc-tions resolution to punish North Korea for its latest nuclear test, U.N. diplo-mats said late Monday.

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T A X B I L L S F O R R I C H F A M I L I E SA P P R O A C H 3 0 - Y E A R H I G H

The Weekly News Digest, March 4, 2013 3

With Washington gridlocked again over whetherto raise their taxes, it turns out wealthy familiesalready are paying some of their biggest federaltax bills in decades even as the rest of the popu-lation continues to pay at historically low rates.

President Barack Obama and Democratic leadersin Congress say the wealthy must pay their fairshare if the federal government is ever going to fixits finances and reduce the budget deficit to amanageable level.

A new analysis, however, shows that average taxbills for high-income families rarely have beenhigher since the Congressional Budget Officebegan tracking the data in 1979. Middle- and low-income families aren't paying as much as theyused to.

For 2013, families with incomes in the top 20 per-cent of the nation will pay an average of 27.2 per-cent of their income in federal taxes, according toprojections by the Tax Policy Center, a researchorganization based in Washington. The top 1 per-cent of households, those with incomes averaging$1.4 million, will pay an average of 35.5 percent.

Those tax rates, which include income, payroll,corporate and estate taxes, are among the high-est since 1979.The average family in the bottom 20 percent ofhouseholds won't pay any federal taxes. Instead,many families in this group will get payments fromthe federal government by claiming more in cred-its than they owe in taxes, including payroll taxes.That will give them a negative tax rate.

"My sense is that high-income people feel abusedby being targeted always for more taxes,"Roberton Williams, a fellow at the Tax PolicyCenter, said. "You can understand why they feelthat way."

Last week, Senate Democrats were unable to

advance their proposal to raise taxes on somewealthy families for the second time this year aspart of a package to avoid automatic spendingcuts. The bill failed Thursday when Republicansblocked it. A competing Republican bill that includ-ed no tax increases also failed, and the automat-ic spending cuts began taking effect Friday.

The issue, however, isn't going away.

Obama and Democratic leaders in Congressinsist that any future deal to reduce governmentborrowing must include a mix of spending cutsand more tax revenue.

"I am prepared to do hard things and to push myDemocratic friends to do hard things," Obamasaid Friday. "But what I can't do is ask middle-class families, ask seniors, ask students to bearthe entire burden of deficit reduction when weknow we've got a bunch of tax loopholes that arebenefiting the well-off and the well-connected,aren't contributing to growth, aren't contributing toour economy. It's not fair. It's not right."

On Sunday, Senate Republican Leader MitchMcConnell of Kentucky said Republicans arecommitted to reducing the budget deficit withoutraising taxes again. In a separate broadcast inter-view, White House economic adviser GeneSperling called that position unreasonable.

The Democrats' sequester bill included the"Buffett Rule," named after billionaire investorWarren Buffett. It gradually would phase in arequirement that people making more than $1 mil-lion a year pay at least 30 percent of their incomein federal taxes.

The rule targets millionaires who make most oftheir money from investments - capital gains andqualified dividends, which have a top tax rate of20 percent.

"It's fairness," said Sen. Claire McCaskill, D-Mo."We're not raising taxes with the Buffett rule asmuch as we are correcting an inequity in terms of,one guy can be working at one end of the hall andbecause he's working with hedge funds, he getstaxed at 20 percent. Another guy at the other endof the hall is on a salary at an insurance companyand he has to pay (39.6 percent). That's just notfair."

On average, households making more than $1million this year will pay 37.2 percent of theirincome in federal taxes, according to the TaxPolicy Center. But there are exceptions.

For example, the Internal Revenue Service trackstax returns for the 400 highest-paid filers eachyear. Those taxpayers made an average of $202million in 2009, the latest year available. Their

average federal income tax rate: 19.9 percent.

That's still higher than the tax rate paid by mostmiddle-income families, but not by much.

The middle 20 percent of U.S. households - thosemaking an average of $46,600 - will pay an aver-age of 13.8 percent of their income in federaltaxes for this year, according to the Tax PolicyCenter. Over the past three decades, the averagefederal tax rate for this group has been about 16percent.

The Associated Press analyzed two sets of datato compare tax burdens over time.

The CBO produces data from 1979 to 2009; thecenter has overlapping data from 2004 through2013. Both get tax data from the IRS, but they useslightly different methodologies to calculate feder-al tax burdens.

Still, their numbers track closely enough to makesome general observations. For example, it isclear that for 2013, average tax bills for thewealthy will be among the highest since 1979. Italso is clear that federal taxes for middle- and low-income households will stay well below their aver-ages for the same period.

Liberals and many Democrats say rich familiescan afford to pay higher taxes because theirincomes have grown much more than incomes formiddle- and low-income families.

Average after-tax incomes for the top 1 percent ofhouseholds more than doubled from 1979 to2009, increasing by 155 percent, according to theCBO. Average incomes for those in the middleincreased by just 32 percent during the same peri-od while those at the bottom saw their incomes goup by 45 percent.

"You've got to think about the context," saidChuck Marr, director of federal tax policy for theCenter on Budget and Policy Priorities, a liberalthink tank. "We just had three decades in theUnited States where we had a tremendousincrease in inequality."

The growing disparity in income is a big reasonwhy tax bills for the rich are approaching 30-yearhighs, Williams said. As the rich get richer, agreater share of their income is taxed at the toprate, he said.

High-income families also have been targeted bytax increases this year, including a new tax lawpassed by Congress on Jan. 1 as well as taxincreases in the president's health care law.

The new tax law made the federal income taxmore progressive, increasing the top tax rate from35 percent to 39.6 percent, on taxable incomeabove $400,000 for individuals and $450,000 formarried couples filing jointly. Lower tax rates onincome below those amounts were made perma-nent. Also, tax breaks for low-income families firstenacted as part of Obama's 2009 stimulus pack-age were extended through 2017.

Conservatives say raising taxes again on thewealthy would reduce their incentive to save andinvest, hurting long-term economic growth.

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The $85 billion in cuts apply to the remainder of the2013 fiscal year, which ends Sept. 30. But without a dealthey will continue slashing government spending by about$1 trillion more over a 10-year period.

McConnell spoke to CNN's "State of the Union."Boehner was interviewed on NBC's "Meet the Press."Sperling appeared on ABC's "This Week," NBC and CNN.Ayotte appeared on ABC. Graham spoke with CBS' "Facethe Nation." Romney was a guest on "Fox NewsSunday."NEW YORK (AP) -- The Dow has never beenhigher.

The Dow Jones industrial average jumped nearly 100points early Tuesday, reaching an all-time high, powered byChina's strong economic growth targets and a jump inEuropean retail sales.

Shortly after the opening bell the Dow was trading at14,222. It's on track to close above its record of 14,164reached on Oct. 9, 2007. It's up 7.8 percent for the year.

The Standard & Poor's index rose 11 points to 1,536.It's also within striking distance of its own record of 1,565.

The Nasdaq was up 30 points at 3,212.Asian markets rose as China pledged to stick to ambi-

tious growth targets for its economy, the world's secondlargest.

European stocks also jumped because of retail sales inthe region rose sharply.

Continued from page 1

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Officials in the Egyptian presidency said Kerrystressed the need for consensus with the oppositionin order to restore confidence in Egypt that it canride out the crisis. Morsi was reported to haveexpressed the importance of Egypt's relationshipwith United States, which is based on "mutualrespect," and focused on the importance of thedemocratic process in building a strong and stablenation.

Kerry made clear that in all his meetings, he con-veyed the message that Egyptians who rose up andoverthrew Mubarak "did not risk their lives to seethat opportunity for a brighter future squandered."

On Saturday, he told the country's bickering politi-cians that they must overcome differences to getEgypt's faltering economy back on track and main-tain its leadership role in the volatile Middle East.

The U.S. is deeply concerned that continued insta-bility in Egypt will have broader consequences in aregion already rocked by unrest.

U.S. officials said Kerry planned to stress the impor-tance of upholding Egypt's peace agreement withIsrael, cracking down on weapons smuggling toextremists in the Gaza Strip and policing theincreasingly lawless Sinai Peninsula while continu-ing to play a positive role in Syria's civil war.

The impact of Kerry's message of unity to the oppo-sition coalition seemingly was blunted when only sixof the 11 guests invited by the U.S. Embassy turnedup for a Saturday session with him and three ofthose six said they still intended to boycott the Aprilparliamentary election, according to participants.

Kerry said that the U.S. would not pick sides inEgypt, and he appealed to all sides to come togeth-er around human rights, freedom and speech andreligious tolerance.

In an apparent nod to the current stalemate inWashington over the U.S. federal budget, Kerryacknowledged after meeting Foreign Minister KamelAmr that compromise is difficult yet imperative.

"I say with both humility and with a great deal ofrespect that getting there requires a genuine give-and-take among Egypt's political leaders and civilsociety groups just as we are continuing to strugglewith that in our own country," he said. `There mustbe a willingness on all sides to make meaningfulcompromises on the issues that matter most to all ofthe Egyptian people."

The opposition accuses Morsi and the Brotherhoodof following in the footsteps of Mubarak, failing tocarry out reforms and trying to install a more reli-giously conservative system.

Morsi's administration and the Brotherhood say theirfoes, who have trailed significantly behind Islamistsin all elections since the uprising against Mubarak,are running away from the challenge of the ballotbox and are trying to overturn democratic gains.

After meeting Morsi and his defense and intelligencechiefs on Sunday, Kerry flew to Riyadh, SaudiArabia, and planned later stops in the United ArabEmirates and Qatar, where his focus is expected tobe the crisis in Syria and Iran.

Kerry is set to return to Washington on Wednesday.

6 The Weekly News Digest, March 4, 2013________________________________________________________

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Give Some Back

CAIRO (AP) -- U.S. Secretary of State John Kerryon Sunday rewarded Egypt for PresidentMohammed Morsi's pledges of political and eco-nomic reforms by releasing $250 million in Americanaid to support the country's "future as a democracy."

Yet Kerry also served notice that the Obama admin-istration will keep close watch on how Morsi, whocame to power in June as Egypt's first freely electedpresident, honors his commitment and that addition-al U.S. assistance would depend on it.

"The path to that future has clearly been difficult andmuch work remains," Kerry said in a statement afterwrapping up two days of meetings in Egypt, adeeply divided country in the wake of the revolutionthat ousted longtime President Hosni Mubarak.

Egypt is trying to meet conditions to close on a $4.8billion loan package from the International MonetaryFund. An agreement would unlock more of the $1billion in U.S. assistance promised by PresidentBarack Obama last year and set to begin flowingwith Kerry's announcement.

"The United States can and wants to do more,"Kerry said. "Reaching an agreement with the IMFwill require further effort on the part of the Egyptiangovernment and broad support for reform by allEgyptians. When Egypt takes the difficult steps tostrengthen its economy and build political unity and

justice, we will work with our Congress at home onadditional support."

Kerry cited Egypt's "extreme needs" and Morsi's"assurances that he plans to complete the IMFprocess" when he told the president that the U.S.would provide $190 million of a long-term $450 mil-lion pledge "in a good-faith effort to spur reform andhelp the Egyptian people at this difficult time." Therelease of the rest of the $450 million and the other$550 million tranche of the $1 billion that Obamaannounced will be tied to successful reforms, offi-cials said.

Separately, the top U.S. diplomat announced $60million for a new fund for "direct support of keyengines of democratic change," including Egypt'sentrepreneurs and its young people. Kerry held outthe prospect of U.S. assistance to this fund climbingto $300 million over time.

Recapping his meetings with political figures, busi-ness leaders and representatives of outside groups,Kerry said he heard of their "deep concern about thepolitical course of their country, the need to strength-en human rights protections, justice and the rule oflaw, and their fundamental anxiety about the eco-nomic future of Egypt."

Those issues came up in "a very candid and con-structive manner" during Kerry's talks with Morsi.

"It is clear that more hard work and compromise willbe required to restore unity, political stability andeconomic health to Egypt," Kerry said.

Syria and Iran were topics of discussion, accordingto officials.

With parliamentary elections in April approachingand liberal and secular opponents of Morsi's MuslimBrotherhood saying they will boycott, Kerry calledthe vote "a particularly critical step" in Egypt's demo-cratic transition.

Violent clashes between protesters and securityforces have created an environment of insecurity,complicating Egyptian efforts to secure vital interna-tional aid.

K E R R Y S A Y S U S R E L E A S I N G

M I L L I O N S I N A I D T O E G Y P T

.S. Secretary of State John Kerry, left, shakes hands withEgyptian President Mohamed Morsi at the PresidentialPalace in Cairo, Egypt on Sunday, March 3, 2013. U.S.Secretary of State John Kerry met with Egypt's presidentSunday, wrapping up a visit to the deeply divided countrywith an appeal for unity and reform. The U.S. is deeplyconcerned that continued instability in Egypt will havebroader consequences in a region already rocked byunrest.

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choose to proceed with the training scheduled to begin inJanuary, as it did after the commission requested addi-tional protections in 2007 and 2009.

If talks fail, the commission could sue to try to force theNavy to adopt the measures, as it has done in the pastbut unsuccessfully.

The commissioners said they decided to reject the planoutright Friday rather than approve it conditionallybecause the Navy has shown it is unwilling to cooperate.

"We've got this stumbling block of the Navy being com-pletely unwilling to accept any of the mitigations that ourstaff has proposed and there has been no explanationthat is evidence-based to give us a rationale to acceptyour position," Commissioner Jana Zimmer told Navyofficials at the hearing.

The Navy has estimated 130 marine mammals could dieand another 1,600 could suffer hearing loss from thetraining program, which plans annually for more than50,000 underwater explosions and more than 10,000hours of high-intensity sonar use.

Michael Jasny with the Natural Resources DefenseCouncil said the Navy severely underestimates the harmin waters traversed by more than 30 endangeredspecies. The testing area encompasses 120,000 nauticalsquare miles of the Pacific off the Southern Californiacoast and includes a corridor between the state andHawaii, among other areas.

"There are no other areas in the country or possibly theworld where Navy activity will be as concentrated ashere in Southern California," Jasny said. "It will be a realtrain wreck because this space is also shared by somany endangered species."

The commission wants the Navy to create safety zonesthat would guarantee no high-intensity sonar activity nearmarine sanctuaries and protected areas and in spots thatexperience a high concentration of blue, fin and graywhales seasonally.

It also believes a kilometer from shore should also be off-limits to protect bottlenose dolphins.

After the vote, Stone said the Navy wants to reach anagreement with the state agency but stood by its argu-ments the commission's measures would unnecessarilyinterfere with training.

"I can't really identify any areas where I see that wewould change, you know, based on the condition," hesaid. "We've already kind of coming into this processspent a long time developing mitigation measures thatwe think are highly effective."

OFFSHORE TRAININGContinued from page 1

_____________________________________________________The Weekly News Digest, March 4, 2013 7

C A R B O M B K I L L S 3 7 , W O U N D S

1 4 1 I N S O U T H E R N P A K I S T A NIt was the third large-scale attack againstmembers of the minority sect so far this year.Two brazen attacks against a Shiite Hazaracommunity in southwestern city of Quettakilled nearly 200 people since Jan 10.

Pakistani militant group Lashkar-e-Jhangviclaimed responsibility for the bombings, whichripped through a billiard club and a market inareas populated by Hazaras, an ethnic groupthat migrated from Afghanistan more than acentury ago. Most Hazaras are Shiites.

Pakistan's intelligence agencies helped nur-ture Sunni militant groups like Lashkar-e-Jhangvi in the 1980s and 1990s to counter aperceived threat from neighboring Iran, whichis mostly Shiite. Pakistan banned Lashkar-e-Jhangvi in 2001, but the group continues toattack Shiites.

According to Human Rights Watch, more than400 Shiites were killed last year in targetedattacks across the country, the worst year onrecord for anti-Shiite violence in Pakistan. Thehuman rights group said more than 125 werekilled in Baluchistan province. Most of thembelonged to the Hazara community.

Human rights groups have accused the gov-ernment of not doing enough to protectShiites, and many Pakistanis question howthese attacks can happen with such regularity.

A resident who lived in the area where thebomb went off Sunday said there had beenanother blast nearby just a few months ago.

"The government has totally failed to providesecurity to common people in this country,"Hyder Zaidi said.

After the Jan. 10 bombing in Quetta, theHazara community held protests, whichspread to other parts of the country. The pro-testers refused to bury their dead for severaldays while demanding a military-led crack-down against the Lashkar-e-Jhangvi group.Pakistan's president dismissed the provincialgovernment and assigned a governor to runBaluchistan province.

No operation was launched against the militantgroup until another bombing in February killed89 people.

The government then ordered a police opera-tion and has said some members of the grouphave been arrested. One of the founders ofthe group, Malik Ishaq, was among thosedetained and officials said he could be ques-tioned to determine if his group is linked to thelatest violence against Shiites.

The repeated attacks have left many Shiitesoutraged at the government. After the lastblast in Quetta, Shiites in Karachi and othercities also demonstrated in support for theirbrethren in Quetta. Shiites in Karachi set fireto tires and blocked off streets leading to theairport. Many Karachi residents planned tostrike on Monday as a form of protest followingSunday's attack in their city.

KARACHI, Pakistan (AP) -- A car bombexploded outside a mosque on Sunday, killing37 people and wounding another 141 in aShiite Muslim dominated neighborhood in thesouthern Pakistan city of Karachi - the thirdmass casualty attack on the minority sect inthe country this year.

No one has taken responsibility for the bomb-ing, but Shiite Muslims have been increasinglytargeted by Sunni militant groups in Karachi,Pakistan's economic hub and site of years ofpolitical, sectarian and ethnic violence, as wellas other parts of the country.

The bomb exploded outside a Shiite mosqueas people were leaving evening prayers inPakistan's largest city. Initial reports suggestedthe bomb was rigged to a motorcycle, but atop police official, Shabbir Sheikh, said laterthat an estimated 100 kilograms (220 pounds)of explosives was planted in a car.

Col. Pervez Ahmad, an official with a Pakistaniparamilitary force called the Rangers, said achemical used in the blast caught fire andspread the destruction beyond the blast site.Several buildings nearby were engulfed inflames.

Men and women wailed and ambulancesrushed to the scene where residents tried tofind victims buried in the rubble of collapsedbuildings. The blast left a crater that was 2meters (yards) wide and more than 1 meter (4feet) deep.

"I was at home when I heard a huge blast.When I came out, I saw there was dust all

around in the streets. Then I saw flames," saidSyed Irfat Ali, a resident who described howpeople were crying and trying to run to safety.

A top government official, Taha Farooqi, saidat least 37 people were confirmed dead and141 more were wounded.

Sunni militant groups have stepped up attacksin the past year against Shiite Muslims whomake up about 20 percent of Pakistan's popu-lation of 180 million people. Sunni militantslinked to al-Qaida and the Taliban view Shiitesas heretics.

Tahira Begum, a relative of a blast victim,demanded the government take strict actionagainst the attackers.

"Where is the government?" she asked duringan interview with local Aaj News TV. "Terroristsroam free. No one dares to catch them."

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A Pakistani man, who was injured in a bomb blast, is brought toa hospital in Karachi, Pakistan, Sunday, March 3, 2013. Pakistaniofficials say a bomb blast has killed dozens of people in a neigh-borhood dominated by Shiite Muslims in the southern city ofKarachi.

O B A M A T O T A P W A L M A R T ' S

B U R W E L L F O R B U D G E T C H I E F

WASHINGTON (AP) -- President Barack Obamaon Monday will nominate Walmart's SylviaMathews Burwell as his next budget director, asenior administration official said.

If confirmed by the Senate, Burwell would take thehelm at the Office of Management and Budget ata time of heated budget battles between the WhiteHouse and congressional Republicans. She wouldalso bring more diversity to Obama's second-termCabinet following criticism that many top jobswere going to white men.

The president will announce Burwell's nominationduring a White House ceremony Monday morning,said the official, who requested anonymity in orderto confirm the nomination ahead of Obama.

Burwell is a Washington veteran, having servedas OMB's deputy director in the Clinton adminis-tration and chief of staff to former TreasurySecretary Robert Rubin. Burwell currently runs theWalmart Foundation, the retail giant's philanthrop-ic wing, and previously served as president of theGates Foundation's Global Development Program.

The official credited Burwell with being a principal

architect of a series of budget plans in the 1990sthat led to a budget surplus.

Walmart president Mike Duke called Burwell astrong leader with a "clear vision for making bigthings happen."

"She understands business and the role that busi-ness, government and civil society must play tobuild a strong economy that provides opportunityand strengthens communities across the country,"Duke said in a statement.

Burwell's nomination signals that the White Houseis trying to get back to normal business after thepresident and Congress failed to avert $85 billionin automatic spending cuts that took effect Friday.While the president has warned of dire conse-quences for the economy as a result of the cuts,the White House does not want to the standoffwith Congress to keep the president from focusingon other second-term priorities, including filling outhis Cabinet and pursuing stricter gun laws and anoverhaul of the nation's immigration system.

Obama made quick work of filling key nationalsecurity openings in his administration, but hasbeen slower to fill other Cabinet openings, includ-ing the OMB post. Vacancies also remain at theEnvironmental Protection Agency, the Commerceand Energy Departments, and the U.S. trade rep-resentative.

Burwell would replace acting OMB director JeffreyZients, a well-liked figure in the Obama adminis-tration, who has been discussed as a contenderfor other top jobs.

h t t p : / / w w w. r e d c r o s s . o r g

CAPE CANAVERAL, Fla. (AP) -- A privateEarth-to-orbit delivery service made good on its lat-est shipment to the International Space Station onSunday, overcoming mechanical difficulty and deliv-ering a ton of supplies with high-flying finesse.

To NASA's relief, the SpaceX company's Dragoncapsule pulled up to the orbiting lab with all of itssystems in perfect order. Station astronauts used ahefty robot arm to snare the unmanned Dragon, andthree hours later, it was bolted into place.

The Dragon's arrival couldn't have been sweeter- and not because of the fresh fruit on board for thesix-man station crew. Coming a full day late, the 250-mile-high linkup above Ukraine culminated a two-day chase that got off to a shaky, almost dead-endingstart.

Moments after the Dragon reached orbit Friday, aclogged pressure line or stuck valve prevented thetimely release of the solar panels and the crucial fir-ing of small maneuvering rockets. SpaceX flight con-trollers struggled for several hours before gainingcontrol of the capsule and salvaging the mission.

"As they say, it's not where you start, but whereyou finish that counts," space station commanderKevin Ford said after capturing the Dragon, "and youguys really finished this one on the mark."

He added: "We've got lots of science on there tobring aboard and get done. So congratulations to allof you."

Among the items on board: 640 seeds of a flow-ering weed used for research, mouse stem cells, foodand clothes for the six men on board the space sta-tion, trash bags, computer equipment, air purifiers,spacewalking tools and batteries. The company alsotucked away apples and other fresh treats from anemployee's family orchard.

The Dragon will remain at the space station formost of March before returning to Earth with sciencesamples, empty food containers and old equipment.

The California-based SpaceX run by billionaireElon Musk has a $1.6 billion contract with NASA tokeep the station well stocked. The contract calls for12 supply runs; this was the second in that series.

This is the third time, however, that a Dragon hasvisited the space station. The previous capsules hadno trouble reaching their destination. Company offi-cials promise a thorough investigation into what wentwrong this time; if the maneuvering thrusters had notbeen activated, the capsule would have been lost.

Ford said everything about Sunday's rendezvousended up being "fantastic."

"There sure were some big smiles all aroundhere," NASA's Mission Control replied fromHouston.

Proclaimed SpaceX on its web site: "HappyBerth Day."

In a tweet following Friday's nerve-rackingdrama, Musk said, "Just want to say thanks to(at)NASA for being the world's coolest customer.Looking forward to delivering the goods!"

Musk, who helped create PayPal, acknowledgedFriday that the problem - the first ever for an orbitingDragon - was "frightening." But he believed it was aone-time glitch and nothing so serious as to imperilfuture missions. The 41-year-old entrepreneur, whoalso runs the electric car maker Tesla, oversaw theentire operation from Hawthorne, Calif., home toSpaceX and the company's Mission Control.

The Dragon's splashdown in the Pacific, off theSouthern California coast, remains on schedule forMarch 25.

NASA is counting on the commercial sector to


S U P P L Y S H I P M E E T S S P A C E

S T A T I O N A F T E R S H A K Y S T A R T

I N D I A R E J E C T S B A Y E R P L E A

A G A I N S T C H E A P C A N C E R D R U GNEW DELHI (AP) -- India's patent appeals officehas rejected Bayer AG's plea to stop the productionof a cheaper generic version of a patented cancerdrug in a ruling that health groups say is an impor-tant precedent for getting inexpensive lifesavingmedicines to the poor.

Last year, India's patent office allowed local drugmanufacturer Natco Pharma Ltd. to produce ageneric version of Bayer's kidney and liver cancerdrug Nexavar on the grounds it would make thedrug available to the public at a reasonably afford-able price. It was the first use of compulsory licens-ing under Indian patent laws passed in 2005.

The Intellectual Property Appellate Board rejectedthe German drug maker's appeal of the 2012 rulingon Monday. It also ruled that under the licenseNatco must pay 7 percent in royalties on net salesto Bayer.

Bayer sells a one month supply of the drug forabout $5,600. Natco's version would cost Indianpatients $175 a month, less than 1/30th as much.

Western pharmaceutical companies have beenpushing for stronger patent protections in India toregulate the country's $26 billion generics industry,which they say frequently flouts intellectual propertyrights. However, health activists and aid groupscounter that Indian generics are a lifesaver forpatients in poor countries who cannot affordWestern prices to treat diseases such as cancer,malaria and HIV.

Bayer said Tuesday it "strongly" disagreed with theappeal panel's decision and would pursue the casein the high court in India's commercial capitalMumbai.

"Bayer is committed to protecting its patents forNexavar and will rigorously continue to defend ourintellectual property rights within the Indian legalsystem," the company said in a statement.

It said one of the main barriers to access to medi-cines in developing countries such as India is the"lack of adequate healthcare services and infra-structure ensuring that drugs will effectively bringtreatment to those who most need it."

Health groups welcomed the panel's ruling saying itwould check the abuse of patents and open upaccess to affordable versions of patented medi-cines.

"The decision means that the way has been pavedfor compulsory licenses to be issued on other

drugs, now patented in India and priced out ofaffordable reach, to be produced by generic compa-nies and sold at a fraction of the price," said LeenaMenghaney of medical humanitarian aid organiza-tion Medecins Sans Frontieres.

The decision might encourage Indian drug makersto explore the compulsory license route to manufac-turing drugs that are critical in the treatment of HIVpatients.

"We have started to switch people we treat for HIVwho develop drug resistance on to newer medi-cines. But these are expensive, which means noteveryone who needs the medicine can afford it,"said Menghaney.

She said a World Health Organization-recommend-ed drug such as Raltegravir costs nearly $1,800 perperson per year, an unaffordable sum for most HIVpatients in India.

"We are waiting to see if drug manufacturers willtake up the challenge," Menghaney said.

Under World Trade Organization rules, govern-ments have the right to issue compulsory licensesto overcome barriers to access to cheaper versionsof a patented drug without the consent of the com-pany that invented the drug.

Several Western pharmaceutical giants say India's2005 Patent Act fails to guarantee the rights ofinvestors who finance drug research and develop-ment.

Bayer said the patent panel's order weakens theinternational patent system and endangers pharma-ceutical research.

"The limited period of marketing exclusivity madepossible by patents ensures that the costs associat-ed with the research and development of innovativemedicines can be recovered," the company said.

Meanwhile, Swiss drug maker Novartis AG is await-ing a decision by India's Supreme Court on therejection of patents for its cancer drug Gleevec.That case revolves around a different legal provi-sion allowing India to block "evergreening" - exten-sions of patents based on minor changes to existingtreatments.

The Supreme Court's ruling on the case is expectedsoon.

supply the space station for the rest of this decade; it'ssupposed to keep running until at least 2020. Russia,Europe and Japan are doing their part, periodicallylaunching their own cargo ships. But none of thosecraft can return items like the Dragon can; they burnup on re-entry.

Russia also is providing rides for astronauts - theonly game in town since the retirement of NASA'sspace shuttles in 2011.

SpaceX, or more formally Space ExplorationTechnologies Corp., leads the commercial pack thatis working toward launching astronauts in anotherfew years. Musk said he can have people flying on amodified Dragon by 2015.

NASA's shuttles used to be the main haulers forthe space station. At the White House direction, thespace agency opted out of the Earth-to-orbit trans-portation business in order to focus on deep spaceexploration. Mars is the ultimate destination.

This frame grab made available by NASA TV shows a view of theSpaceX Dragon capsule on the end of the International SpaceStation's robotic arm, Sunday, March 3, 2013. SpaceX, theCalifornia-based company founded by billionaire Elon Musk, hadto struggle with the Dragon following its launch Friday from CapeCanaveral. The spacecraft is delivering more than 1 ton of sup-plies to the the International Space Station

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The Weekly News Digest March 4