Assad's forces battle to retake Damascus suburb

AMMAN (Reuters) - Elite Syrian government troops backed by tanks battled on Monday to recapture a strategic Damascus suburb from rebels who have advanced within striking distance of the center of Syria's capital.

Five people, including a child, died from army rocket fire that hit the Daraya suburb during the fighting, opposition activists said. Daraya is part of a semi-circle of Sunni Muslim suburbs south of the capital that have been at the forefront of the 21-month-old revolt against President Bashar al-Assad.

"This is the biggest attack on Daraya in two months. An armored column is trying to advance but it is being held (back) by the Free Syrian Army," said Abu Kinan, an opposition activist in the area, referring to a rebel group.

Clashes were also reported near the airport in Aleppo, Syria's largest city, which is in the north. Insurgents have made that airport a target in the hope of limiting government access to Aleppo, which is largely under rebel control.

Rebels have taken much of the north and east of Syria over the past six months, but government forces still hold most of the densely populated southwest around the capital, the main north-south highway and the Mediterranean coast.

Government forces scored a victory on Saturday, pushing rebels out of Deir Baalbeh, a district in Homs, an important central city that straddles the highway linking Damascus with the north and the Mediterranean.

Some opposition activists have said scores or even hundreds of people were executed in Deir Baalbeh by troops that seized it after several days of fighting. However, reports of killings there on a large scale could not be verified.

More than 45,000 people are estimated to have been killed in the 21-month war, the longest and deadliest of the revolts that began throughout the Arab world two years ago. Mainly Sunni Muslim rebels are fighting to topple Assad, a member of the Alawite minority sect whose family has ruled Syria since his father seized power 42 years ago in a coup.

The opposition refuses to hold peace talks unless Assad relinquishes power, and military successes over the last six months have reinforced its belief it can drive him out by force.

However, government troops still heavily outgun the fighters and maintain air bases scattered across the country.

The Damascus suburbs have become one of the major fronts of the war, with the rebels hoping to finally bring their uprising to the capital, heart of Assad's power.

Activist Abu Kinan said that tens of thousands of civilians had fled Daraya during weeks of government assault on the suburb, but that 5,000 remained, along with hundreds of rebels. Daraya is located near the main southern highway connecting Damascus to the Jordanian border 85 km (50 miles) to the south.

Activists said Republican Guard forces are trying to push back rebels who have been slowly advancing from the outskirts of Damascus to within striking distance of government targets and central districts inhabited by Assad's Alawite minority sect.

Assad's forces have mostly relied on aerial and artillery bombardment, rather than infantry. Rebels have been able take outlying towns and have clashed with government troops near Damascus International Airport, halting flights by foreign airlines.

Another activist in Damascus with links to rebels, who did not want to be named, said Daraya has been a firing position for rebels using mortars and homemade rockets. From it, they have been able to hit a huge presidential complex located on a hilltop overlooking Damascus and target pro-Assad shabbiha militia in an Alawite enclave nearby known as Mezze 86.

"So far they have missed the palace but they are getting better. I think the regime has realized that it no longer can afford to have such a threat so close by, but it has failed to overrun Daraya before," he said.

"HELL OR THE POLITICAL PROCESS"

The opposition is backed by most Western and Arab states, while Assad has enjoyed the diplomatic protection of Moscow, which sells arms to his government and maintains a naval base in one of his ports.

Western countries have been searching for signs that Moscow is lifting its protection of Assad, hoping that would bring him down much as Russia's withdrawal of support heralded the fall of Serbian leader Slobodan Milosevic 12 years ago.

Moscow said on Saturday that it has no power to make Assad leave office, and accused the rebels of prolonging the bloodshed by refusing to negotiate with him.

U.N. envoy Lakhdar Brahimi has called on outside powers to push all sides to talk, arguing that Syria faces a choice of "hell or the political process".

Brahimi is touting a peace plan agreed to in principle by international powers six months ago, but the plan does not explicitly call for Assad to be excluded from power, which the opposition regards as a precondition to any talks.

The opposition-linked Syrian Observatory for Human Rights said that rebels clashed with government troops near Aleppo's international airport. Rami Abdelrahman, the British-based Observatory's director, told Reuters by phone that fighting flared on Sunday night and continued into Monday morning.

He said no flights were departing or arriving from the airport. Syria's state airline canceled at least one flight there over the weekend.

Nevertheless, the government's seizure of Deir Baalbeh in Homs is a reminder that its forces are still capable of recapturing territory from the lightly armed rebels. Syria's state news agency SANA said government forces seized a large cache of weapons and ammunition after capturing the district.

(Writing by Peter Graff; Editing by Oliver Holmes and Mark Heinrich)

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Bombs kill 23 across Iraq as sectarian strife grows

BAGHDAD (Reuters) - At least 23 people were killed and 87 wounded in attacks across Iraq on Monday, police said, underlining sectarian and ethnic divisions that threaten to further destabilize the country a year after U.S. troops left.

Tensions between Shi'ite, Kurdish and Sunni factions in Iraq's power-sharing government have been on the rise this year. Militants strike almost daily and have staged at least one big attack a month.

The latest violence followed more than a week of protests against Shi'ite Prime Minister Nuri al-Maliki by thousands of people from the minority Sunni community.

No group claimed responsibility for any of Monday's attacks, which targeted government officials, police patrols and members of both the Sunni and Shi'ite communities.

Seven people from the same Sunni family were killed by a bomb planted near their home in the town of Mussayab, south of Baghdad.

In the Shi'ite majority city of Hilla, also in the south, a parked car bomb went off near the convoy of the governor of Babil province, missing him but killing two other people, police said.

"We heard the sound of a big explosion and the windows of our office shattered. We immediately lay on the ground," said 28-year-old Mohammed Ahmed, who works at a hospital near the site of the explosion.

"After a few minutes I stood up and went to the windows to see what happened. I saw flames and people lying on the ground."

In the capital Baghdad, five people were killed by a parked car bomb targeting pilgrims before a Shi'ite religious rite this week, police and hospital sources said.

Although violence is far lower than during the sectarian slaughter of 2006-2007, about 2,000 people have been killed in Iraq this year following the withdrawal last December of U.S. troops, who led an invasion in 2003 to overthrow Sunni dictator Saddam Hussein.

SUNNIS PROTEST

Violence also hit Iraq's disputed territories, over which both the central government and the autonomous Kurdish region claim jurisdiction.

Three militants and one Kurdish guard were killed in the oil-producing, ethnically mixed city of Kirkuk, where militants driving a car packed with explosives tried to break into a Kurdish security office.

Earlier on Monday, two policemen were killed in Kirkuk when a bomb they were trying to detonate exploded prematurely. An army official and his bodyguard were also killed in a drive-by shooting in the south of the city.

Kirkuk lies at the heart of a feud between Baghdad and Kurdistan over land and oil rights, which escalated last month when both sides deployed their respective armies to the swath of territory along their contested internal boundary.

Efforts to ease the standoff stalled when President Jalal Talabani, a Kurd seen as a steadying influence, suffered a stroke and was flown abroad for medical care in December.

Maliki then detained the bodyguards of his Sunni finance minister, which ignited anti-government protests in the western province of Anbar, a Sunni stronghold on the border with Syria.

A lecturer in law at Baghdad University said the protests could help create the conditions for militant Islamist groups like al Qaeda to thrive.

"Raising tension in Anbar and other provinces with mainly Sunni populations is definitely playing into the hands of al Qaeda and other insurgent groups," Ahmed Younis said.

More than 1,000 people protested in the city of Samarra on Monday and rallies continued in Ramadi, center of the protests, and in Mosul, where about 500 people took to the streets.

In the city of Falluja, where protesters have also staged large rallies and blocked a major highway over the past week, gunmen attacked an army checkpoint, killing one soldier.

Protesters are demanding an end to what they see as the marginalization of Sunnis, who dominated the country until the U.S.-led invasion. They want Maliki to abolish anti-terrorism laws they say are used to persecute them.

On Sunday, Deputy Prime Minister Saleh al-Mutlaq, himself a Sunni, was forced to flee a protest in Ramadi when demonstrators pelted him with stones and bottles.

The civil war in neighboring Syria, where majority Sunnis are fighting to topple a ruler backed by Shi'ite Iran, is also whipping up sectarian sentiment in Iraq.

"The toppling of President Bashar al-Assad and empowerment of Sunnis (in Syria) will definitely encourage al Qaeda to regain ground," Younis said.

(Reporting by Ali al-Rubaie in Hilla, Mustafa Mahmoud and Omar Mohammed in Kirkuk, Ali Mohammed in Baquba and Ahmed Rasheed and Aseel Kami in Baghdad; Writing by Isabel Coles; Editing by Alison Williams)

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Venezuela's Chavez in stable condition, says son-in-law

CARACAS (Reuters) - Venezuelan President Hugo Chavez is in stable condition and spent Monday with his daughters, the cancer-stricken leader's son in law said in an appeal for supporters to ignore rumors about his condition.

Chavez has not been seen in public nor heard from in more than three weeks. The vice president said on Sunday that the 58-year-old was suffering a third set of complications after surgery in Cuba on December 11, his fourth operation in 18 months.

"Compatriots, DON'T believe in ill-intentioned rumors," Science Minister Jorge Arreaza, who is married to Chavez's daughter Rosa Virginia, wrote on Twitter from Havana where they have been at the former soldier's bedside.

"President Chavez spent the day quietly and stable, together with his daughters."

Chavez has not provided details of the cancer that was first diagnosed in June 2011, leading to speculation among Venezuela's 29 million people and criticism from opposition leaders.

Officials have said he suffered unexpected bleeding as result of the complex, six-hour operation on his pelvic area, and that doctors had to fight a respiratory infection, which then caused his latest setback on Sunday.

The government has repeatedly described Chavez's condition as "delicate," warning Venezuelans to prepare for difficult days ahead and urging them to pray for "el Comandante."

The main New Year's Eve party in downtown Caracas was canceled. Instead, the information minister hosted a smaller gathering which featured musicians, speeches and prayers and was dubbed "Now More Than Ever With Chavez."

The president's death or resignation due to illness would upend politics in Venezuela, where his personalized brand of oil-financed socialism has made him a hero to the poor majority but a pariah to critics who call him a dictator.

His condition is also being watched closely around Latin America, especially in other leftist-run nations such as Cuba, Ecuador and Bolivia, which depend on subsidized fuel shipments and other Venezuelan aid for their fragile economies.

'TREMENDOUS ABSENCE'

In his New Year's message, Bolivian President Evo Morales said the region's leaders were missing Chavez badly.

"We feel that there has been a tremendous absence, especially for the presidents like us who are anti-imperialist and anti-neoliberal," Morales said.

"We are convinced that with the great will of Bolivia's people, all the world's people who pray, who do rituals to Mother Earth for his health, our brother president will be there soon. This is our great wish on the last day of 2012."

Chavez is due to be sworn in again in Venezuela on January 10 after he won re-election in October. But top officials from his ruling Socialist Party (PSUV) have suggested the ceremony could be pushed back if he were unable to return.

For the opposition, any postponement would be just the latest sign that Chavez is not fit to govern and that new elections should be held to choose his replacement.

If Chavez had to step down, new elections would be called within 30 days and his newly named heir apparent, Vice President Nicolas Maduro, would be the PSUV candidate.

Maduro has tried to copy Chavez's bombastic rhetoric in speeches during the president's absence, but he has struggled to replicate Chavez's extraordinary man-of-the-people charisma.

Opposition figures believe they would have a better chance against Maduro than against the president, who for 14 years has appeared almost unbeatable at the ballot box.

Henrique Capriles, the opposition leader who was beaten by Chavez in the presidential election in October, said in a year-end message that Venezuelans needed to unite.

"Everything indicates that 2013 will be a tough year with big changes," he said. "Venezuela has learned a lot in very little time. Today we know the value of union, of agreement, of the need to find common ground and work together to achieve it."

Polls conducted before October's vote - well before Chavez named him as his successor - showed Capriles would beat Maduro.

But it could be a very different story if a new election were to be called now, with the vice president expected to be carried on a wave of emotion from distraught Chavez supporters.

As the New Year approached in Caracas, many PSUV loyalists retweeted a message that read: "In 2012 I cried with Chavez, loved with Chavez, voted for Chavez, laughed with Chavez and prayed for Chavez. In 2013, I will continue to be with Chavez."

(Additional reporting by Mario Naranjo and Deisy Buitrago in Caracas, and Daniel Ramos in La Paz; editing by Todd Eastham)

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North Korean leader, in rare address, seeks end to confrontation with South

SEOUL (Reuters) - North Korean leader Kim Jong-un called for an end to confrontation between the two Koreas, technically still at war in the absence of a peace treaty to end their 1950-53 conflict, in a surprise New Year speech broadcast on state media.

The address by Kim, who took over power in the reclusive state after his father, Kim Jong-il, died in 2011, appeared to take the place of the policy-setting New Year editorial published in leading state newspapers.

Impoverished North Korea raised tensions in the region by launching a long-range rocket in December that it said was aimed at putting a scientific satellite in orbit, drawing international condemnation.

North Korea, which considers North and South as one country, the Democratic People's Republic of Korea, is banned from testing missile or nuclear technology under U.N. sanctions imposed after its 2006 and 2009 nuclear weapons tests.

"An important issue in putting an end to the division of the country and achieving its reunification is to remove confrontation between the north and the south," Kim said in the address that appeared to be pre-recorded and was made at an undisclosed location.

"The past records of inter-Korean relations show that confrontation between fellow countrymen leads to nothing but war."

The New Year address was the first in 19 years by a North Korean leader after the death of Kim Il-sung, Kim Jong-un's grandfather. Kim Jong-il rarely spoke in public and disclosed his national policy agenda in editorials in state newspapers.

The two Koreas have seen tensions rise to the highest level in decades after the North bombed a Southern island in 2010 killing two civilians and two soldiers.

The sinking of a South Korean navy ship earlier that year was blamed on the North but Pyongyang has denied it and accused Seoul of waging a smear campaign against its leadership.

Last month, South Korea elected as president Park Geun-hye, a conservative daughter of assassinated military ruler Park Chung-hee whom Kim Il-sung had tried to kill at the height of their Cold War confrontation.

Park has vowed to pursue engagement with the North and called for dialogue to build confidence but has demanded that Pyongyang abandon its nuclear weapons ambitions, something it is unlikely to do.

Conspicuously absent from Kim's speech was any mention of the nuclear arms program.

(Reporting by Jack Kim; Editing by Nick Macfie)

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U.N. chief names East Timor's Ramos-Horta envoy to Guinea-Bissau

UNITED NATIONS (Reuters) - U.N. Secretary-General Ban Ki-moon on Monday named Nobel Peace prize laureate and former president of East Timor, Jose Ramos-Horta, as his special representative to Guinea-Bissau, a West African nation that has become a narcotics hub.

Ramos-Horta will assume the post once the current envoy in Guinea-Bissau, Joseph Mutaboba of Rwanda, completes his term on January 31, 2013, the United Nations said in a statement.

Cocaine trafficking through drug hub Guinea-Bissau is spreading unabated amid turmoil sparked by an April military coup that has slashed the country's key cashew crop and almost halved its economic growth, the United Nations said in a report to the U.N. Security Council earlier this year.

Ramos-Horta survived an assassination attempt in 2008. He shared the Nobel prize in 1996 for working toward a peaceful solution to the East Timor conflict and his key role in the country's movement for independence from Indonesia.

Ramos-Horta was president of East Timor from 2007 to 2012. He lost a re-election bid earlier this year.

(Reporting By Louis Charbonneau; editing by Todd Eastham)

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Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

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Monti's reform path faces test beyond Italy elections

ROME (Reuters) - Mario Monti declared "mission accomplished" when he resigned as Italy's prime minister, having seen off the debt crisis that loomed as he took office just over a year ago but 2013 will test whether he has laid the foundations for lasting economic change.

Elections on February 24-25 will give Italian voters their first chance to decide whether they want to stick to the broad course he has set or turn to a growing chorus of politicians who have attacked his austerity medicine.

Monti's decision to enter the race himself has put his reform agenda at the heart of the campaign and will have effects far outside Italy, the euro zone's third-largest economy, which took the single currency to the brink of collapse last year.

Former European Commissioner Monti, favored by the markets, the business establishment and even the Catholic church, has insisted that the election must be about creating agreement on policy rather than on any individual.

In that sense, the true test of his success may be not whether he wins a second term but whether he has succeeded in convincing the other parties and the country as a whole to stay with the liberalizing agenda he has laid out.

That remains uncertain, despite the plaudits he earned abroad for his handling of the crisis, as ordinary Italians have seen their living standards fall and unemployment rise relentlessly.

The centre-left Democratic Party (PD), the favorites to win the election, have supported Monti in parliament and say they will maintain the broad course he has set, while putting more emphasis on growth and helping workers and the poor.

But some on the left of the party and among its trade union allies say inequality has risen under Monti.

On the right, Silvio Berlusconi accuses Monti of taking orders from German Chancellor Angela Merkel and penalizing middle class Italians for the benefit of German banks. He has called for sweeping tax cuts to stimulate growth.

The runaway success of the anti-establishment comic Beppe Grillo and his 5-Star Movement, which wants to hold a referendum to decide whether to leave the euro, has also underlined the widespread mood of disillusion now deeply anchored in Italy.

"I don't have any confidence in my country, absolutely not," said Rosaria Resciniti, one of thousands of young people lining up to enter a competition for a job as primary school teacher in Rome.

"It is a country for old people. We should all leave and leave the country to the pensioners," she said.

UNEMPLOYMENT EMERGENCY

Monti himself acknowledged the disaffection on Friday when he confirmed that he would be joining the election campaign as head of a centrist alliance committed to continuing his reforms.

"Fortunately, it seems that the financial emergency is over, but there is another emergency which is just as serious or even more so, which is the unemployment emergency, especially as regards youth unemployment and the lack of growth," he said.

Helped by the promise of European Central Bank support, the main gauge of investor confidence, the spread between yields on Italian 10 year government bonds and safer German Bunds has narrowed from the crisis levels of more than 550 basis points hit when Monti took office to about 320 points.

But the broader indicators of economic health have got worse, a fact constantly pointed out by critics such as Berlusconi and Grillo, who say the tax hikes and spending cuts imposed to calm the markets have dragged Italy into a recessionary spiral.

The economy has contracted for five consecutive quarters and is estimated to have shrunk by 2.4 percent in 2012. Public debt has topped the symbolic 2 trillion euro level, corruption and waste are still rampant, and youth unemployment is over 36 percent.

Italy has had the euro zone's most sluggish economy for more than a decade, and whether any of the leaders fighting the election can turn that around quickly is doubtful, as one of the possible ministers in a centre-left government acknowledged.

"This crisis will last throughout the whole of the next parliament at least," deputy PD leader Enrico Letta told Reuters last month.

The task will be greatly complicated if market sentiment turns against Italy as it did in 2011, when tensions in the Berlusconi government raised doubts about its commitment to budget discipline.

Monti, seen outside Italy at least as a guarantor of stability, has said he was "not a man sent by Providence", but whether he himself will be involved in the next government has been one of the main questions hanging over the race.

His sober, professorial style came as a welcome relief to international investors and European partners unnerved by the turmoil and scandal surrounding Berlusconi as bond markets crashed in the summer of 2011.

But if opinion polls are confirmed on election day, it is difficult to see how he could become prime minister without resorting to the kind of backroom deals that characterized the shaky coalitions of the postwar period, when governments often survived no more than months or even weeks.

The most recent opinion poll gave centre-left PD leader Pier Luigi Bersani support of 36 percent, with Monti on 23.3 percent, ahead of both Berlusconi's People of Freedom (PDL) and Grillo's 5-Star Movement.

Monti's involvement in the election has ruled him out as a candidate for president of the Republic, a post that would have given him significant behind-the-scenes influence.

That leaves the possibility of becoming finance minister in a Bersani government, though there has been little sign of enthusiasm either from his side or from the PD, which has maintained a respectful tone towards Monti but now clearly sees him as a political adversary.

GROWTH AGENDA

Beyond the issue of personalities, the deep-rooted problems afflicting the Italian economy will be a formidable challenge to any new government.

"The situation in Italy is not easy, there are too many centres of power where everybody blocks everything. Our infrastructure isn't working and we've got corruption all over," said Renzo Rosso, head of the group behind Diesel jeans, one of the Italian companies that has managed to find a way past the obstacles in its home market to create a global success.

All the main parties in the race have called for more emphasis on creating growth, which along with its towering public debt has long been Italy's Achilles heel.

Monti's own 25-page agenda lays out a range of answers, such as taxing consumption and large fortunes more than companies and workers, and opening up markets to more competition and breaking down the suffocating power of special interest groups.

Turning such ideas into practice and convincing the public to go along with them is another matter.

Reflecting on her time in office, Elsa Fornero, an academic expert recruited into Monti's technocrat government whose labor reform plans were largely stymied by resistance from both unions and employers, said she had learned the difference the hard way.

"In this period of almost a year now, I have been able to measure the distance between being a professor and being a minister," she told foreign reporters last month.

"It's something completely different. I have been more used to formulating rational solutions, but the rationality of a solution is not enough because society is more differentiated and doesn't just live on rationality."

(Additional reporting by Hanna Rantala, Cristiano Corvino and Antonella Ciancio; Editing by Will Waterman)

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Pakistan militants kill 41 in mass execution, attack on Shi'ites

PESHWAR, Pakistan (Reuters) - Pakistani militants, who have escalated attacks in recent weeks, killed at least 41 people in two separate incidents, officials said on Sunday, challenging assertions that military offensives have broken the back of hardline Islamist groups.

The United States has long pressured nuclear-armed ally Pakistan to crack down harder on both homegrown militants groups such as the Taliban and others which are based on its soil and attack Western forces in Afghanistan.

In the north, 21 men working for a government-backed paramilitary force were executed overnight after they were kidnapped last week, a provincial official said.

Twenty Shi'ite pilgrims died and 24 were wounded, meanwhile, when a car bomb targeted their bus convoy as it headed toward the Iranian border in the southwest, a doctor said.

New York-based Human Rights Watch has noted more than 320 Shias killed this year in Pakistan and said attacks were on the rise. It said the government's failure to catch or prosecute attackers suggested it was "indifferent" to the killings.

Pakistan, seen as critical to U.S. efforts to stabilize the region before NATO forces withdraw from Afghanistan by the end of 2014, denies allegations that it supports militant groups like the Afghan Taliban and Haqqani network.

Afghan officials say Pakistan seems more genuine than ever about promoting peace in Afghanistan.

At home, it faces a variety of highly lethal militant groups that carry out suicide bombings, attack police and military facilities and launch sectarian attacks like the one on the bus in the southwest.

Witnesses said a blast targeted their three buses as they were overtaking a car about 60 km (35 miles) west of Quetta, capital of sparsely populated Baluchistan province.

"The bus next to us caught on fire immediately," said pilgrim Hussein Ali, 60. "We tried to save our companions, but were driven back by the intensity of the heat."

Twenty people had been killed and 24 wounded, said an official at Mastung district hospital.

CONCERN OVER EXTREMIST SUNNI GROUPS

International attention has focused on al Qaeda and the Pakistani Taliban.

But Pakistani intelligence officials say extremist Sunni groups, lead by Lashkar-e-Jhangvi (LeJ) are emerging as a major destabilizing force in a campaign designed to topple the government.

Their strategy now, the officials say, is to carry out attacks on Shi'ites to create the kind of sectarian tensions that pushed countries like Iraq to the brink of civil war.

As elections scheduled for next year approach, Pakistanis will be asking what sort of progress their leaders have made in the fight against militancy and a host of other issues, such as poverty, official corruption and chronic power cuts.

Pakistan's Taliban have carried out a series of recent bold attacks, as military officials point to what they say is a power struggle in the group's leadership revolving around whether it should ease attacks on the Pakistani state and join groups fighting U.S.-led forces in Afghanistan.

The Taliban denies a rift exists among its leaders.

In the attack in the northwest, officials said they had found the bodies of 21 men kidnapped from their checkpoints outside the provincial capital of Peshawar on Thursday. The men were executed one by one.

"They were tied up and blindfolded," Naveed Anwar, a senior administration official, said by telephone.

"They were lined up and shot in the head," said Habibullah Arif, another local official, also by telephone.

One man was shot and seriously wounded but survived, the officials said. He was in critical condition and being treated at a local hospital. Another had escaped before the shootings.

Taliban spokesman Ihsanullah Ihsan claimed responsibility for the attacks.

"We killed all the kidnapped men after a council of senior clerics gave a verdict for their execution. We didn't make any demand for their release because we don't spare any prisoners who are caught during fighting," he said.

The powerful military has clawed back territory from the Taliban, but the kidnap and executions underline the insurgents' ability to mount high-profile, deadly attacks in major cities.

This month, suicide bombers attacked Peshawar's airport on December 15 and a bomb killed a senior Pashtun nationalist politician and eight other people at a rally on December 22.

(Additional reporting by Saud Mehsud in DERA ISMAIL KHAN and Gul Yousufzai in QUETTA; Writing by Katharine Houreld; Editing by Michael Georgy and Ron Popeski)

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No end to Syria war if sides refuse to talk: envoy

AZAZ, Syria/CAIRO (Reuters) - The international peace negotiator for Syria pleaded with outside countries on Sunday to push the warring parties to the table for talks, warning that the country would become a failed state ruled by warlords unless diplomacy is given a chance.

Lakhdar Brahimi, who inherited the seemingly impossible task of bringing an end to the war after his predecessor Kofi Annan resigned in frustration in July, has launched an intensified diplomatic campaign to win backing for a peace plan.

He spent five days this week in Damascus, where he met President Bashar al-Assad. On Saturday he visited Assad's main international backers in Moscow, and on Sunday he travelled to Cairo, where President Mohamed Mursi has emerged as one of Assad's most vocal Arab opponents.

"The problem is that both sides aren't speaking to one another," he said. "This is where help is needed from outside."

Brahimi's peace plan - inherited from Annan and agreed to in principle in Geneva in June by countries that both oppose and support Assad - has the seemingly fatal flaw of making no mention of whether Assad would leave power.

The Syrian leader's opponents - who have seized much of the north and east of the country in the past six months - say they will not cease fire or join any talks unless Assad goes and have largely dismissed Brahimi's initiative.

But Brahimi says the plan is the only one on the table, and predicts "hell" if countries do not push both sides to talk.

"The situation in Syria is bad, very, very bad, and it is getting worse, and the pace of deterioration is increasing," Brahimi told reporters.

"People are talking about Syria being split into a number of small states ... This is not what will happen. What will happen is Somalization: warlords." Somalia has been without effective central government since civil war broke out there in 1991.

More than 45,000 people have been killed in Syria's 21-month war, the longest and deadliest of the revolts that began sweeping the Arab world two years ago.

The rebels are mainly from the Sunni Muslim majority, fighting against Assad, a member of the Shi'ite-derived Alawite minority sect, giving the war a dangerous sectarian dimension.

The rebels increasingly believe that their military successes of the past half year are bringing victory within reach. But Assad's forces still hold the densely-populated southwest of the country, the main north-south highway and the Mediterranean coast in the northwest.

The government also holds airbases scattered throughout the country, and has an arsenal including jets, helicopters, missiles and artillery that the fighters cannot match.

ASSAD FORCES SEIZE HOMS DISTRICT

Government troops scored a victory on Saturday after several days of fighting, seizing a Sunni district in Homs, a central town that controls the vital road linking Damascus to the coast.

Opposition activists said on Sunday that many people had been killed in the Deir Baalbeh district after it was captured, although it was not immediately possible to verify claims that a "massacre" had taken place. The opposition Syrian Network for Human Rights said it documented the summary execution of 17 men.

"They were young and old, mostly refugees who had fled to Deir Baalbeh from central parts of Homs," it said in a statement. Footage taken by activists showed the bodies of eight men with what appeared to be bullet wounds in the face and head.

With severe restrictions by Syrian authorities on independent media in place since the revolt broke out in March last year, the footage could not be confirmed.

Najati Tayyara, a veteran opposition campaigner from Homs in contact with the city, told Reuters residents believed the death toll was as high as 260, although the area was sealed off by government forces and allied militia.

"I am afraid that we have seen a massacre in Deir Baalbeh and a military setback for the rebels because of their lack of organization. They have been in need of ammunition for a long time and it finally ran out," he said.

"Communications are difficult and we are trying to piece together what happened in Deir Baalbeh. We so far know that regime forces went in after the rebels retreated and summarily executed dozens of people, including civilians."

Tayyara said the fall of Deir Baalbeh undermined supply lines to rebel held areas inside the city.

Bilal al-Homsi, an opposition activist in Old Homs, said MiG warplanes bombarded the area overnight and medium range rockets and hit the area of al-Khalidiya, a rebel-held Sunni district.

In the north, opposition activists said fighters had surrounded an air defense base near Aleppo airport, south of the contested city. Fighting raged in the area and warplanes bombed rebel positions near the base to try and break the siege.

In the northern city of Azaz, where activists said 11 people were killed when air strikes destroyed six homes, gravediggers were already digging graves for whichever victims will be next.

"We know the plane is coming to hit us, so we're being prepared," said Abu Sulaiman, one of a few men digging at the Sheikh Saad cemetery.

"Massacres are happening. We're putting every two or three bodies together. We've been working and digging since 6 in the morning. We're going to dig 10 new graves today," he said.

"We're preparing them. Maybe we'll be buried in them."

Fida, a 15-year-old girl in a green scarf and purple coat looked on as her father shoveled dirt from the gravesite. The dead from the previous day's attacks included friends she recognized when their shrouds were pulled back.

"Yesterday was the first time I uncovered blankets to discover that my friends had died," she said, as young children near the cemetery played hopscotch on the streets and kicked stones about.

"I was just about to go visit them about a half hour before the strike hit," she said. "In the end I visited them when they were dead."

(Adiditional reporting by Khaled Yacoub Oweis in Amman, Ayman Samir and Tom Perry in Cairo and Peter Graff in Beirut; Writing by Peter Graff; Editing by Rosalind Russell)

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Chavez suffers new post-surgery complications

CARACAS (Reuters) - Venezuelan President Hugo Chavez is suffering more complications linked to a respiratory infection that hit him after his fourth cancer operation in Cuba, his vice president said in a somber broadcast on Sunday.

Vice President Nicolas Maduro flew to Cuba to visit Chavez in the hospital as supporters' fears grew for the ailing 58-year-old socialist leader, who has not been seen in public nor heard from in three weeks.

Chavez had already suffered unexpected bleeding caused by the six-hour operation on December 11 for an undisclosed form of cancer in his pelvic area. Officials said doctors then had to fight a respiratory infection.

"Just a few minutes ago we were with President Chavez. He greeted us and he himself talked about these complications," Maduro said in the broadcast, adding that the third set of complications arose because of the respiratory infection.

"Thanks to his physical and spiritual strength, Comandante Chavez is confronting this difficult situation."

Maduro, flanked by his wife Attorney-General Cilia Flores, Chavez's daughter Rosa Virginia and her husband, Science Minister Jorge Arreaza, said he would remain in Havana while Chavez's condition evolved.

He said Chavez's condition remained "delicate" - a term he has used since the day after the surgery, when he warned Venezuelans to prepare for difficult times and urged them to keep the president in their prayers.

"We trust that the avalanche of love and solidarity with Comandante Chavez, together with his immense will to live and the care of the best medical specialists, will help our president win this new battle," Maduro said.

A senior government official in Caracas said the New Year's Eve party in the capital's central Plaza Bolivar had been canceled. "Everyone pray for strength for our comandante to overcome this difficult moment," the official, Jacqueline Faria, added on Twitter after making the announcement.

OIL-FINANCED SOCIALISM

Chavez's resignation for health reasons, or his death, would upend politics in the OPEC nation where his personalized brand of oil-financed socialism has made him a hero to the poor but a pariah to critics who call him a dictator.

His condition is being closely watched around Latin America, especially in other nations run by leftist governments, from Cuba to Bolivia, which depend on subsidized fuel shipments and other aid from Venezuela for their fragile economies.

Chavez has not provided details of the cancer that was first diagnosed in June 2011, leading to speculation among Venezuela's 29 million people and criticism from opposition leaders.

Chavez's allies have openly discussed the possibility that he may not be able to return to Venezuela to be inaugurated for his third six-year term as president on the constitutionally mandated date of January 10.

Senior "Chavista" officials have said the people's wishes were made clear when the president was re-elected in October, and that the constitution makes no provision for what happens if a president-elect cannot take office on January 10.

Opposition leaders say any postponement would be just the latest sign that Chavez is not in a fit state to govern and that new elections should be called to choose his replacement. If Chavez had to step down, new elections would be called within 30 days.

Opposition figures believe they have a better shot against Maduro, who was named earlier this month by Chavez as his heir apparent, than against the charismatic president who for 14 years has been nearly invincible at the ballot box.

Any constitutional dispute over succession could lead to a messy transition toward a post-Chavez era in the country that boasts the biggest oil reserves in the world.

Maduro has become the face of the government in Chavez's absence, imitating the president's bombastic style and sharp criticism of the United States and its "imperialist" policies.

In Sunday's broadcast, Maduro said Chavez sent New Year greetings to all Venezuelans, "especially the children, whom he carries in his heart always."

(Additional reporting by Deisy Buitrago and Mario Naranjo; Editng by Kieran Murray and Christopher Wilson)

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