British PM to hold crisis talks on riots, cleanup starts

British Prime Minister David Cameron was to hold crisis talks on Tuesday after three nights of riots, looting and arson by masked, hooded youths that wrecked shopping centres in many parts of London and spread to three other cities

Neighbourhoods across the capital faced a massive clean-up of smashed glass, bricks, bottles and gutted buildings as police reinforcements reclaimed the streets from the youths who had coordinated the looting via mobile phones and social media.

The rioting — the worst in Britain for decades — spread to districts across London, and what police called copycat violence broke out in Bristol in the southwest, Birmingham in the Midlands and the northwest port of Liverpool.

Late on Monday, as the violence died down, cars piled high with goods drove at high speed through London streets. Witnesses were told of numerous cases of car theft by groups of looters.

In the poor eastern district of Woolwich, passersby felt the crunch of broken glass underfoot and saw shattered shop fronts and streets strewn with stolen goods, tailors'' dummies and other debris.

Police said they had arrested 334 people in London and about 100 in Birmingham.

At one point, the London fire brigade said it was running out of vehicles to tackle fires started by the rioters and police said they had called in 1,700 reinforcements to help London police cope with fast-moving groups of looters.

Cameron broke off his holiday in Italy on Monday to fly home. He was due to chair a meeting of Cobra, the government''s crisis committee, at 9 a.m. (0800 GMT) to work out a strategy to prevent more violence and consider why the riots broke out and spread so fast, taking the authorities by surprise.

Cuts in services
Some commentators have blamed the rioting partly on cuts in social services being imposed as a result of the government''s tough austerity policies to reduce a large budget deficit. Economic growth is sluggish.

Many looters were from areas of high unemployment and said they felt alienated from society.

“We

ain''t got no jobs, no money … We heard that other people were getting things for free, so why not us?” asked E.Nan, a young man in a baseball cap surrounded by other youths in Hackney, a multi-ethnic area in east London and one of the worst affected areas.

Hooded youths in Hackney pushed burning rubbish bins down a street towards police on Monday, laughing as they ran back when police charged them. Others smashed their way into a shop and ran off clutching bottles of whisky and beer.

Reuters witnesses saw similar scenes in Woolwich, Clapham in the south and Ealing in the west. In Ealing, one resident told Reuters about 150 hooded youths had walked down his road smashing car windows in a display of “mindless vandalism”.

“It''s very sad to see … But kids have got no work, no future and the cuts have made it worse. These kids are from another generation to us and they just don''t care,” said Hackney electrician Anthony Burns, 39. “You watch. It''s only just begun.”

Government officials branded the rioters criminals and said the violence would have no effect on prepI likarations for the 2012 London Olympic Games — though television images of blazing buildings and rioting were likely to dent the capital''s image.

“It was needless, opportunistic theft and violence, nothing more, nothing less. It is completely unacceptable,” said Deputy Prime Minister Nick Clegg.

Cameron has resisted calls to slow the rate at which he is cutting the budget deficit in order to lessen the impact on youth services and other facilities. He was likely to come under new pressure to do more for poor districts of the capital.

The first riots broke out on Saturday in London''s northern Tottenham district, when a peaceful protest over the police shooting of a suspect two days earlier was followed by outbreaks of looting.

Further disturbances followed on Sunday, and on Monday, emboldened by the inability of the police to concentrate their forces in every trouble spot, looting spread rapidly.

zp8497586rq

Q+A: Will BP spill taint Cameron’s U.S. visit?

(Reuters) – David Cameron is making his first trip to the United States as British prime minister on Tuesday and Wednesday, a visit expected to be overshadowed by the BP Plc oil spill in the Gulf of Mexico.

Cameron will meet President Barack Obama, Vice President Joe Biden and congressional leaders then travel to New York for talks with business leaders and at the United Nations.

Here are some questions and answers about the visit.

WILL OBAMA AND CAMERON DISCUSS THE SPILL?

The two leaders will address a range of issues that will definitely include the oil spill, aides say.

White House spokesman Robert Gibbs said they would discuss issues including Afghanistan, the global economy and the Middle East, with Afghanistan “first and foremost” on the list.

The two men have discussed the spill during two of their three telephone conversations to date and it came up during their first face-to-face meeting since Cameron became prime minister in May, during the Group of Eight and Group of 20 meetings in Canada last month.

“The conversation is likely to be drawn into a larger discussion about BP on two fronts,” wrote Heather Conley and Rick Nelson of the Center for Strategic and International Studies in Washington.

The first, they said, is ensuring BP cleans up, compensates residents and restores the Gulf Coast after the disaster while remaining financially solvent.

They also said Obama and Cameron were likely to discuss whether the British oil giant had any influence over the release of the Lockerbie bomber, Abdel Basset al-Megrahi, from a Scottish prison last year.

WILL THE LOCKERBIE BOMBER COME UP?

Cameron’s office has tried to play down the concern, saying the U.S. debate over how the ill Libyan convicted of the 1988 bombing of a Pan Am flight was allowed to return home “may come up” but is not a “major issue.”

BP has confirmed it lobbied the British government in late 2007 over a prisoner transfer agreement with Libya but said it was not involved in talks on the release of al-Megrahi, which was strongly opposed by the Obama administration.

“Our viewpoint on this case last year was well-known and that was we opposed the release of the Lockerbie bomber. We made that opinion known,” Gibbs said, noting that Cameron — who was not prime minister when Megrahi was sent to Libya — also opposed the release.

But Gibbs said he expected the issue would come up in some form between Obama and Cameron, who said on BBC television: “I’ve no idea what BP did. I’m not responsible for BP.”

U.S. lawmakers have demanded an investigation but Cameron’s office said it had no plans to re-examine the case. “That will be up to the British government to determine,” Gibbs said.

The four U.S. senators from New York and New Jersey who want an investigation have been invited to meet Cameron on Tuesday night.

“He understands the strengths of feelings on this issue,” Cameron’s spokesman said.

WILL BP AFFECT THE “SPECIAL” RELATIONSHIP?

Washington and London have had their differences over the BP spill since it started in late April.

Obama has sought to convince Americans he is taking a tough stance against the giant oil firm to ensure it pays for the worst oil spill in U.S. history. And Cameron has said he will stand up for BP in Washington, worried that the firm could face unreasonable compensation claims from businesses and families affected by the spill.

But the disaster is not expected to put a long-term damper on the vaunted “special relationship” between the United States and Britain — at least as long as a new cap on the well holds and the cleanup goes well.

Obama and Cameron were eager to display their closeness when they met in Canada last month. Obama gave the new prime minister a ride in his helicopter and the two held a separate bilateral meeting in Toronto, at which they exchanged beers related to a bet over World Cup soccer.

Cameron’s Conservative-Liberal Democrat coalition government is aware Britain needs to build other special ties to maintain its influence and help its economy bounce back from recession. But Cameron is an outspoken fan of the American way of life and is not likely to distance himself from Washington.

In developing his relationship with Obama, the Conservative prime minister is likely to seek middle ground between what was seen as former Labour Prime Minister Tony Blair’s subordinate “poodle” relationship with former U.S. President George W. Bush and the businesslike tone set by Gordon Brown, the Labour prime minister who preceded Cameron, the CSIS experts said.

The tone also could be affected by the cool personal style of Obama, who is not known for warm personal relationships with other world leaders.

(Editing by Patricia Wilson and John O’Callaghan)

Obama, Cameron to hold talks clouded by BP concerns

WASHINGTON, July 20 (Reuters) – U.S. President Barack Obama and British Prime Minister David Cameron will hold talks on Tuesday overshadowed by controversy over BP Plc (BP.L)(BP.N) that could test the vaunted “special relationship” between their countries.

They are expected to discuss BP’s role in the Gulf of Mexico oil spill and whether the British energy giant had influence in the release of the Lockerbie bomber from a Scottish prison last year — issues that have complicated transatlantic ties. [ID:nN19218995]

Cameron’s first visit to Washington as British prime minister comes amid a U.S. backlash against BP. With an eye to British pensioners and other investors at home, he has pledged to stand up for the embattled company.

Aides to both leaders insist the talks aim to build on a personal rapport they struck up at last month’s Group of 20 summit in Canada and that the agenda will focus more on the war in Afghanistan, the global economy and the Middle East.

But BP and its role in the worst oil spill in U.S. history loom large. Differences over BP’s treatment and over approaches to economic recovery raise fresh questions about a historic Anglo-American alliance already past its heyday.

Scoffing at “endless British preoccupation with the health of the special relationship,” Cameron wrote in the Wall Street Journal that he would be “hard-headed and realistic” about U.S. ties and said both countries must also strengthen bonds with rising powers like China and India. [ID:nLDE66I0I8]

DEMANDS FOR INQUIRY

Under heavy criticism over the Gulf disaster, BP faces demands from U.S. lawmakers for an official inquiry into whether it had a hand in the release of the Libyan convicted in the 1988 bombing of a Pan Am flight over Lockerbie, Scotland.

BP has confirmed it lobbied the British government in 2007 over a prisoner transfer deal because it was concerned a slow resolution would hurt an offshore drilling deal with Libya.

But the company said it was not involved in talks on the release of Abdel Basset al-Megrahi, sentenced to life for the deaths of 270 people, including 189 Americans.

On the eve of Cameron’s visit, the British government reiterated that BP had no role in the decision to free Megrahi and said it had no plans to re-examine the release, which took place despite fierce U.S. objections.

Scottish authorities said they freed the intelligence officer because he was terminally ill and they believed he had only three months to live. He is still alive in Libya.

U.S. Secretary of State Hillary Clinton told senators she was urging Scottish and British authorities to review the case.

Cameron’s aides have sought to play down the issue. He stressed in a BBC interview that, as opposition leader at the time, he thought the release was “utterly wrong.”

His visit also comes as U.S. lawmakers consider a range of rules that could require tougher safety standards on offshore drilling or bar companies like BP from new offshore leases.

Cameron has made clear he will defend BP, saying it must remain “strong and stable” to make good on its promise to compensate oil spill victims and for the sake of employees and people with pension funds invested in the company in both countries.

Obama, whose approval ratings have been undercut by public anger over the disaster, has taken a hard line with BP, although his rhetoric has softened recently amid criticism his administration had gone too in bashing the company.

Obama and Cameron will meet amid hopes a capping test on the blown-out well, which has largely choked off the undersea flow of oil, will pave the way for a permanent fix. [ID:nLDE66I13M]

UNITED FRONT, DIFFERENCES

Against this backdrop, they will present a united front on issues like sanctions against Iran and try to strike a balance between keeping up the fight in Afghanistan while signaling to skeptical voters they are progressing on exit strategies.

Obama and Cameron are sure to pay homage to their countries’ special relationship — in keeping with predecessors since Winston Churchill coined the phrase in 1946 — when they hold a joint news conference after they meet and have lunch.

But Cameron has indicated his new Conservative-Liberal Democrat coalition will work together pragmatically without being too slavish to U.S. interests.

Obama has also demonstrated a desire to see relations evolve, although he has been careful to avoid offending British sensibilities as he did earlier when he returned a loaned bust of Churchill on display in the Oval Office.

Cameron has led European attempts to cut budget deficits that have ballooned in the wake of the global financial crisis, while the United States has urged caution, arguing that reducing borrowing too fast could hinder the fragile recovery.

Both sides have agreed to disagree for now.

Cameron seems unwilling to be cast as America’s “poodle” — as British media dubbed former Labour Prime Minister Tony Blair to former President George W. Bush. But he has acknowledged that Britain is the “junior partner” of the United States.

With more to gain from their encounter, Cameron is also looking to benefit from sharing a stage with Obama, who is more popular in Britain and much of Europe than he is at home. (Additional reporting by Matt Falloon; Editing by John O’Callaghan)

India PM: Global economic recovery tentative

July 27 (Reuters) – Indian Prime Minister Manmohan Singh said the global economic recovery was still tentative, required concerted efforts by countries to anchor it firmly, and suggested government spending could make up for weak private demand, an official said on Sunday.

Bonds | Global Markets

Singh made the remarks to British Prime Minister David Cameron on Saturday when the two leaders met on the sidelines of the G20 summit, Indian Foreign Ministry spokesman Vishnu Prakash told reporters.

“Prime Minister Dr Manmohan Singh said that India would like to see continued concerted efforts by all countries to ensure the global economic recovery gets further consolidated as the process was still somewhat tentative,” Prakash said on Sunday.

“He said the slack in private demand could be compensated by fiscal measures and stimulus packages.”

(Reporting by C.J. Kuncheria)

Israeli ministers weigh easing Gaza blockade

June 16 (Reuters) – Israel’s security cabinet met on Wednesday to consider easing the Gaza blockade, officials said, in the face of world pressure for change since a deadly raid on an aid flotilla to the territory last month.

Ministers may approve a plan to expand a list of more than 100 goods Israel permits the Hamas-ruled territory to import across its border, in coordination with Tony Blair, an official said.

The former British prime minister is the envoy for the Quartet of international powers — the United States, European Union, United Nations and Russia — seeking peace in the region.

Blair, who held talks last week with Israeli Prime Minister Benjamin Netanyahu, said on Monday that Israel had agreed in principle to begin easing the blockade “in days”.

Israeli cabinet minister Isaac Herzog, who has called for the lifting of the blockade, told Army Radio on Wednesday:

“We must understand that the blockade implemented until this time is outdated, and no longer applicable in the current international and diplomatic climate.”

Herzog said on Tuesday that Israel had informed Blair, who briefed EU foreign ministers on Monday, that it intends to “permit an easier passage of goods” to the Gaza Strip.

Israel imposed the blockade soon after Hamas, which has rejected Western calls to recognise the Jewish state’s right to exist, won legislative elections in 2006. Restrictions were tightened after Hamas seized power in Gaza the following year.

The EU wants Israel to move from a policy of banning the entry of many commercial goods into Gaza, except a few designated items, to accepting all products and prohibiting only those proscribed on a list.

Israel has said it wants to prevent the Iranian-backed Hamas from smuggling in any weapons, and officials say Israel would continue to ban the import of building materials to Gaza it says may be used to support military infrastructure.

Pressure had built on Israel to end the blockade since its troops shot and killed nine people on board a Turkish-backed vessel of an aid flotilla on May 31, while enforcing its naval blockade on Gaza.

(Writing by Allyn Fisher-Ilan; Editing by Michael Roddy)

Blair hopes Gaza blockade could be eased within days

(Reuters) – Middle East envoy Tony Blair said on Sunday he hoped to see movement in the next few days on easing the Israeli blockade of the Gaza Strip.

World

Israeli Prime Minister Benjamin Netanyahu, under rising pressure to ease the embargo since a deadly raid on a Turkish-backed aid ship heading to Gaza last month, held talks on the issue with Blair on Friday.

Asked when supplies could begin getting through to Gaza, Blair told the BBC: “I think it’s got to be pretty soon.”

“As fast as the next few days I hope we can get significant movement on this because otherwise I think the pressure will build up,” he said.

“As Benjamin Netanyahu has quite rightly said today, there is a way to distinguish between the security aspect and the daily life aspect. And if we keep that distinction in our mind then I think we will get the right answer and we can start that quickly,” he said.

The former British prime minister said the Palestinian authorities and the European Union, as well as Israel, could play a role in policing the flow of goods into Gaza.

“There are all sorts of different ways that you can help police this material, the main thing is to make whatever policing system you have effective,” said Blair, the envoy for the Quartet of international powers — the United States, European Union, United Nations and Russia — seeking peace in the region.

Arab League chief Amr Moussa visited the Gaza Strip on Sunday, the highest Arab official to do so since its seizure by Hamas Islamists in 2007, and called for an end to Israel’s blockade of the Palestinian territory.

Israel said on Friday it wanted to enlist global support to improve the flow of civilian goods to the Gaza Strip, while ensuring weapons did not reach the territory.

Israeli soldiers shot dead nine Turkish protesters last month after being assaulted with knives and clubs when they boarded the humanitarian aid vessel to prevent it from breaching the blockade.

A variety of goods enter Gaza from neighboring Egypt as well as from Israel, but aid groups have warned of a looming humanitarian disaster in the area home to 1.5 million Palestinians, due to Israel’s restrictions on goods transiting its crossings.

Israel says the embargo it imposed when Hamas rose to power in 2006 is aimed at preventing weapons from reaching the Iranian-backed Islamists who have refused peace initiatives with Israel because they reject its right to exist.

Blair said he believed reconciliation between Hamas and Palestinian President Mahmoud Abbas’s Fatah faction was possible.

“For people like myself it would be far better if we were engaging with Hamas constructively. The difficulty is when Hamas are still prepared to say ‘we don’t give up the use of violence …’,” he said.

“I hope they decide they do want to be part of it (the peace process) because the door is open if they want to go through it,” Blair added.

(Reporting by Adrian Croft; Editing by Matthew Jones)

Afghan president visits Taliban spiritual home

KANDAHAR, Afghanistan, June 13 (Reuters) – Afghan President Hamid Karzai visited the Taliban’s spiritual home on Sunday, launching a campaign that promises better governance and development alongside a security push by foreign forces.

Accompanied by the commander of foreign forces in Afghanistan, U.S. General Stanley McChrystal, Karzai pleaded for support from a gathering of several hundred elders in Kandahar, the city that launched the Taliban and the capital of the province where their insurgency is at its strongest.

“Right now the life of Kandahar is a very bad life,” he said at a conference hall in the city. “Step by step, we can go forward.”

In recent years Karzai has rarely ventured to Kandahar, where he survived an assassination attempt in 2005. He has strong family roots there, however. His brother chairs the provincial assembly and has been accused of corruption, charges he denies.

Washington’s strategy to end the nine-year-old war involves a surge of troops to improve security accompanied by development schemes that provide jobs and an improvement in government services.

Karzai’s administration has been accused in the past of not keeping its side of the bargain, but McChrystal said he believed the government was taking action now.

“I thought I saw extraordinary ownership on the part of a national leader,” he said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For more on Afghanistan click [ID:nAFPAK]

or see link.reuters.com/syx62d

Afghan blog: blogs.reuters.com/afghanistan/ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Foreign troop deployment is expected to peak at 150,000 before U.S. President Barack Obama’s planned withdrawal starts in July 2011. Visiting British Prime Minister David Cameron made clear last week he wanted his troops out as soon as possible.

This month alone some 37 foreign service members have died in Afghanistan.

Asked what changes the residents of Kandahar would notice after this operation — military officials are keen not to use the word “offensive” — McChrystal said:

“I think it won’t look shockingly different than it does now. … I think it may feel very different.”

“There will be more ANP (police). I think more mothers will feel comfortable with their husbands going to the mosque to pray. I think there will be fewer killings. I think there will be a sense that some of the constricting or menacing pressure on the part of the insurgency has been released.

And I hope it is also matched by improvements in governance.”

Karzai’s brother, Ahmed Wali Karzi, said the Kandahar operation was welcomed by locals. But some remained sceptical.

“In Afghanistan, people first see and then believe,” said Ghulam Jilani Popal, head of the Afghan Independent Directorate of Local Government. (Writing by David Fox from pool notes; Editing by Elizabeth Fullerton) (For more Reuters coverage of Afghanistan and Pakistan, see: here)

BP will decide its own dividend: UK minister

(Reuters) – Energy giant BP, under pressure in the United States to suspend its dividend to help pay for damage from a huge oil spill, will decide its own dividend, Foreign Secretary William Hague said on Sunday.

U.S. | Green Business | Gulf Oil Spill

Britain and the United States sought to patch up tensions over the Gulf of Mexico spill in a telephone call between U.S. President Barack Obama and British Prime Minister David Cameron on Saturday.

Asked if there would be no more talk about British-based BP having to consult U.S. politicians on its dividend policy, Hague told the BBC: “BP will decide on its own dividend, of course.”

Hague said BP must “do its utmost to stop this oil spill, to deal with it satisfactorily on a permanent basis and to do everything it possibly can to mitigate the consequences.”

He said the British government was offering large quantities of chemical dispersant to the United States to help with the spill.

(Reporting by Adrian Croft; Editing by Alison Williams)

BP will decide its own dividend-UK minister

June 13 (Reuters) – Energy giant BP (BP.L)(BP.N), under pressure in the United States to suspend its dividend to help pay for damage from a huge oil spill, will decide its own dividend, Foreign Secretary William Hague said on Sunday.

Britain and the United States sought to patch up tensions over the Gulf of Mexico spill in a telephone call between U.S. President Barack Obama and British Prime Minister David Cameron on Saturday.

Asked if there would be no more talk about British-based BP having to consult U.S. politicians on its dividend policy, Hague told the BBC: “BP will decide on its own dividend, of course.”

Hague said BP must “do its utmost to stop this oil spill, to deal with it satisfactorily on a permanent basis and to do everything it possibly can to mitigate the consequences”.

He said the British government was offering large quantities of chemical dispersant to the United States to help with the spill. (Reporting by Adrian Croft; Editing by Alison Williams)

UK PM Cameron to talk to Obama on BP on Saturday

June 11 (Reuters) – British Prime Minister David Cameron will discuss issues including the BP oil spill with U.S. President Barack Obama on Saturday, the prime minister’s spokesman said on Friday.

Stocks | Global Markets

The call would take place on Saturday afternoon (London time), the spokesman said. (Reporting by Estelle Shirbon; editing by Keith Weir)

UK’s Cameron to discuss BP with Obama at weekend

June 10 (Reuters) – British Prime Minister David Cameron is likely to speak to U.S. President Barack Obama over the weekend and BP is sure to be among the topics discussed, the prime minister’s official spokesman said on Thursday.

Stocks | Global Markets

“There is likely to be a call at the weeekend. They will be discussing a range of issues … I’m sure that BP will be one of the topics discussed,” the spokesman said during a routine briefing to reporters. (Reporting by Estelle Shirbon)

UK, Canada highlight bank levy ahead of G20 meeting

(Reuters) – British Prime Minister David Cameron said on Thursday that his country and G20 host Canada had differences in their approach to a global banking levy.

Canadian Prime Minister Stephen Harper, speaking at a meeting with Cameron, said the bank levy would be a very lively subject of discussion at the G20. Harper said he agreed that taxpayers should not foot the bill for bank bailouts.

Harper’s government, which hosts G8 and G20 meetings later this month, strongly opposes proposals for a global bank tax, arguing that strong regulations kept Canadian banks sound through the global financial crisis and other nations should follow its example.

Britain’s new Conservative-Liberal Democrat coalition government has pledged to introduce a banking levy but has given no details. It has said it could act unilaterally.

(Reporting by; Editing by)

UK, Canada highlight bank levy ahead of G20 meeting

June 3 (Reuters) – British Prime Minister David Cameron said on Thursday that his country and G20 host Canada had differences in their approach to a global banking levy.

Regulatory News | Bonds | Global Markets

Canadian Prime Minister Stephen Harper, speaking at a meeting with Cameron, said the bank levy would be a very lively subject of discussion at the G20. Harper said he agreed that taxpayers should not foot the bill for bank bailouts.

Harper’s government, which hosts G8 and G20 meetings later this month, strongly opposes proposals for a global bank tax, arguing that strong regulations kept Canadian banks sound through the global financial crisis and other nations should follow its example.

Britain’s new Conservative-Liberal Democrat coalition government has pledged to introduce a banking levy but has given no details. It has said it could act unilaterally. (Reporting by; Editing by)

Britain’s coalition says no change on budget plan

LONDON, May 31 (Reuters) – British Prime Minister David Cameron’s new coalition government is committed to cutting a gaping budget deficit despite the resignation of a finance minister over his expenses claims, officials said on Monday.

They said the loss of Chief Treasury Secretary David Laws, number two at the finance ministry, would have no impact on the Conservative-led government’s plans to push through tough austerity measures in an emergency budget on June 22.

“I think in the first three weeks the government has now clearly demonstrated its commitment to getting on with tackling the deficit and debt,” Justice Secretary Ken Clarke told the BBC in an interview.

Clarke, a former Conservative finance minister, said it was obvious around the cabinet table that there was no division of opinion between Cameron’s Conservatives and their Liberal Democrat partners.

At the weekend Cameron appointed Danny Alexander, a former close aide to Liberal Democrat leader Nick Clegg, to replace Laws as number two to Conservative Chancellor of the Exchequer George Osborne.

“Danny has all the intelligence, ability, potential, required for the task,” said Clarke.

The Financial Times quoted an unnamed aide to Cameron as saying: “I can safely say the strategy and direction (of the coalition government) will not change at all.”

The coalition is drawing up cuts to rein in Britain’s record peacetime budget deficit, which exceeds 11 percent of gross domestic product.

LAWS’ RESIGNATION

Laws resigned on Saturday within 24 hours of a newspaper reporting the Liberal Democrat politician had claimed tens of thousands of pounds in parliamentary expenses for rent he passed on to his long-term male partner.

The loss of Laws occurred less than three weeks after the formation of Britain’s first coalition for 65 years. The coalition took power after a May 6 election ousted the Labour Party from 13 years in office.

Laws, an economist with a background in London’s financial services industry, was a key player in striking the coalition accord and appeared to have struck up an effective relationship with Osborne.

He had won the respect of his Conservative colleagues and his willingness to make cuts had reassured markets worried about a deficit forecast to top 160 billion pounds this year.

Alexander will now take over the role of seeing through a series of tough austerity measures needed to save Britain billions of pounds.

The loss of Laws is an unwelcome distraction for a new government eager to focus on the economic challenges and to start a new chapter after a scandal over parliamentary expenses that dogged the final months of the previous Labour government.

Cameron had promised a new, open administration that abides by strict rules of conduct.

Alexander, who is 38, was little known outside parliament before the election. [ID:nLDE64S0IE]

He rose to prominence during the election campaign as Clegg’s chief of staff and as a negotiator in the days of talks that led to the formation of Britain’s first coalition government since World War Two.

The coalition agreement is a delicate balance of the two parties’ policy priorities. By appointing another Liberal Democrat to replace Laws, Cameron has been careful not to upset the party balance in the coalition cabinet.

(Editing by Ralph Gowling)

West plays down Iran gesture, sticks to sanctions drive

Western powers said on Tuesday Iran’s continued stockpiling of enriched uranium devalued its deal to give up some of its potential nuclear bomb material, signalling Tehran would not evade more sanctions this way.

Under the deal agreed with Turkey and Brazil last week, Iran would send 1.2 tonnes of its low-enriched uranium (LEU) to Turkey for safekeeping until Tehran received specially processed fuel for its medical isotope reactor around a year later.

But Western critics said the accord, echoing one brokered by the U.N. nuclear watchdog in October involving the same amount of LEU, would still leave Iran with enough material for one bomb, if enriched to high purity, since it is estimated to have almost doubled its LEU reserve with daily enrichment since then.

The United States, France and Russia — parties to the original deal in principle — saw it as a way to divest Iran of enough LEU to prevent covert “weaponisation”, while giving Iran the means to maintain care for some 850,000 cancer patients.

But U.S. Secretary of State Hillary Clinton condemned Iran’s gesture, six months after it backed away from the accord, as a “transparent ploy to avoid (U.N.) Security Council action” to pass a fourth Iran sanctions resolution now on the table.

Clinton, speaking after talks with Chinese leaders in Beijing, and French officials said Iran’s launch of higher-level enrichment in February seemed to eclipse any fuel swap deal.

“We discussed at some length (with the Chinese) the shortcomings of the recent proposal put forward by Iran … There are a number of deficiencies with it that do not answer the concerns of the international community,” Clinton said.

British Prime Minister David Cameron said that even if Iran followed through on the deal, it would still retain half of its LEU reserve — sufficient for one nuclear warhead.

HARSHER SANCTIONS STAY ON TABLE

“I believe it is time to ratchet up that pressure, and the timetable is short. This government has a clear objective to ensure stronger U.N. and EU sanctions against Iran,” Cameron said during parliamentary debate in London on Tuesday.

France’s Foreign Ministry spokesman said Iran’s extended uranium enrichment activities were problematic for its proposal, conveyed on Monday to the International Atomic Energy Agency (IAEA) which passed it on to Paris, Washington and Moscow.

Iran’s simultaneous reiteration that it would not rein in enrichment in any way, defying a series of resolutions by the IAEA and Security Council, “is being taken into account and it’s part of the problem,” spokesman Bernard Valero said.

“At the time (of the October deal) we were talking about 1,200 kilogrammes and now the stockpile must be around 2-2,400 kilogrammes,” Valero said. “There’s a bit of a difference between the two and that is also part of the problem.”

Iran insists its uranium enrichment programme is for solely peaceful purposes of electricity generation and medical care. But it has a history of hiding sensitive nuclear activity from the IAEA and continues to restrict U.N. inspections.

In Moscow on Tuesday, Iran’s ambassador to Russia was quoted by Interfax news agency as warning that Tehran would reconsider the new deal if further sanctions were imposed. Iran has called for renewed talks with the big powers on details of the pact.

“If there are new sanctions, it will become obvious to the Iranian public that the ’5 + 1′ group is hiding evil intentions and pursuing political objectives. This would force us to revise the Tehran accords,” Mahmoud Reza Sadjadi was quoted as saying.

“We believe that by this (deal) Iran has demonstrated its goodwill,” Sadjadi said. “After all that lobbying by Brazil, Turkey and other countries, we believe that it makes no sense to talk about new sanctions.”

Prime Minister Benjamin Netanyahu of Israel, Iran’s arch regional enemy, dismissed Tehran’s nuclear offer as “empty”.

“(That’s because Iran)…continues to enrich uranium it has at a high level, and reserves the right, according to this proposal, to take (what) it’s meant to transfer to Turkey back to Iran at any time,” Netanyahu told the Israeli parliament.

The draft sanctions resolution agreed by six world powers — the United States, Britain, France, Germany, Russia and France — last week is being discussed with other Security Council members for what Washington hopes will be approval next month.

The extended sanctions provisions would target Iranian banks and call for high-sea inspections of vessels suspected of carrying cargo related to Iran’s nuclear or missile programmes.

(Additional reporting by Tim Castle in London, Vicky Buffery in Paris, Ari Rabinowitch in Jerusalem, Dmitry Solovyov in Moscow; Writing by Mark Heinrich; Editing by Michael Roddy)

HIGHLIGHTS – UK PM Cameron speaks in parliament

British Prime Minister David Cameron gave a speech in parliament on Tuesday after the new government unveiled its legislative programme.

Following are key quotes.

BANKING REFORM:

“We are going to bring some law and order to the banking system that Labour allowed to wreck our economy. There will be more powers to the Bank of England in our financial services regulation bill and we’ll get to grips with the unacceptable bonus culture and open up credit lines for small businesses. We want to make sure our banks serve our economy rather than the other way round.”

IRAN:

“Even if Iran were to complete the deal proposed in their recent agreement with Turkey and Brazil, it would still retain around 50 percent of its stockpile of low enriched uranium, and it is this stockpile that could be enriched to weapons grade uranium.

“For the last six years we have pursued a twin-track policy offering engagement, but being prepared to apply pressure.

“I believe it is time to ratchet up that pressure, and the timetable is short.

“This government has a clear objective to ensure stronger U.N. and EU sanctions against Iran.”

(Reporting by Estelle Shirbon and Tim Castle)

No police outriders for me: British PM

London, May 16 (IANS) British Prime Minister David Cameron has declined police outriders who travel in front of his official car, a move that has sparked concern among security expert who fear for his safety.

Cameron has told his staff that he would be happy to be stuck in traffic jams like ordinary motorists while he is on his way to official engagements, The Sun reported Saturday.

The prime minister’s special Jaguar has bullet-proof windows and bomb-proof doors. Former PM Gordon Brown used up to six specially-trained police motorcyclists, while John Major did not use any.

Cameron’s car was held up in a busy London street Saturday and passers-by were able to get within a few feet of the prime minister.

‘David is happy to put up with the same driving conditions as everyone else,’ a Downing Street source was quoted as saying.

Dai Davies, former head of Royalty Protection at Scotland Yard, was flabbergasted to see Cameron leave Buckingham Palace without outriders after the Queen invited him to become the next prime minister of Britain.

‘I thought it was some mistake. The first rule is keep moving. If you stop you get hit. I’m extremely worried and would urge Mr Cameron to reconsider his decision,’ he said.

Gordon Brown’s chances of knighthood ruined?

London, May 16 (ANI): Former British Prime Minister Gordon Brown may miss a chance to earn knighthood after his recent statement following his exit from the top post.

The ex-leader said he “loved the job” of prime minister, “not for its prestige, its titles and its ceremony.”

However, the speech has put officials, who were planning to make Brown a Knight of the Order of the Thistle, at Buckingham Palace in a fix, as the felicitation apparently would be an “insult” to the former Labour leader with such an honour.

“Brown may well come round to the idea. Other Labour prime ministers, such as Harold Wilson, couldn””t wait for an honour,” the Telegraph quoted Hugo Vickers, the author of Royal Orders, as saying.

Even though there is a vacancy in the Order of the Garter, Vickers feels Brown will be offered the Thistle.

He added: “If you are Scottish, it is in some ways more prestigious. Unfortunately, there are no vacancies for the Thistle at the moment, but the Queen doesn””t like to rush these things.”

Meanwhile, Brown has said he will continue as the MP for Kirkcaldy. (ANI)

Allies would lost Second World War had Hitler used deadly nerve gas: Expert

New York, May 15 (ANI): As the D-Day anniversary approaches, a professor of chemistry and biochemistry at Canisius College in Buffalo, New York, Frank J. Dinan, has revealed what could have happened if Nazi dictator Adolf Hitler had used the deadly nerve gas Tabun.

According to Professor Dinan, had Hitler used Tabun, the Allies could have been forced back into the sea with enormous casualties.

He further goes on to say that the political repercussions of a D-Day defeat for U.S. President Franklin Roosevelt, British Prime Minister Winston Churchill and commander-in-chief Dwight Eisenhower, the three men most responsible for the Normandy landings would have been devastating.

He also believed the war would have been prolonged and could have resulted in the Allies using their still developing atomic bombs against Germany rather than Japan.

Seeing Tabun’s effectiveness as a weapon and the lack of an Allied response, Hitler certainly would have used it against the Russians.

The Tabun story began on December 23, 1936, when a single drop of that newly-made chemical fell to the floor of a laboratory in Germany.

The two men working there immediately suffered diminished vision, labored breathing and a loss of muscle control.

Ironically, Tabun was made to be an insecticide that was toxic to insects but harmless to humans.

The Nazis government required that all discoveries of potential military value be passed along to them.

The men’s employer, the giant I.G. Farben Corporation, complied, and its representatives were soon called to Berlin to discuss Tabun with the military.

Demonstrations of Tabun’s lethal effects at extraordinarily low concentrations made its potential as a devastating weapon obvious. Everything about Tabun was immediately classified as top secret and few were aware of its existence.

A weapon oriented Tabun research program began and construction of a plant designed for its production soon started. By mid 1943 thousands of tons of Tabun had been produced, loaded into artillery shells and bombs that were moved to storage sites throughout Germany.

The secrecy that surrounded Tabun was so effective that the Allies had no hint of its existence and had no comparable weapons to retaliate with if the Nazis used it.

Nerve agents such as Tabun, are among the deadliest chemicals ever devised and are now classified as weapons of mass destruction by the United Nations. (ANI)

Allies would lost Second World War had Hitler used deadly nerve gas: Expert

New York, May 15 (ANI): As the D-Day anniversary approaches, a professor of chemistry and biochemistry at Canisius College in Buffalo, New York, Frank J. Dinan, has revealed what could have happened if Nazi dictator Adolf Hitler had used the deadly nerve gas Tabun.

According to Professor Dinan, had Hitler used Tabun, the Allies could have been forced back into the sea with enormous casualties.

He further goes on to say that the political repercussions of a D-Day defeat for U.S. President Franklin Roosevelt, British Prime Minister Winston Churchill and commander-in-chief Dwight Eisenhower, the three men most responsible for the Normandy landings would have been devastating.

He also believed the war would have been prolonged and could have resulted in the Allies using their still developing atomic bombs against Germany rather than Japan.

Seeing Tabun’s effectiveness as a weapon and the lack of an Allied response, Hitler certainly would have used it against the Russians.

The Tabun story began on December 23, 1936, when a single drop of that newly-made chemical fell to the floor of a laboratory in Germany.

The two men working there immediately suffered diminished vision, labored breathing and a loss of muscle control.

Ironically, Tabun was made to be an insecticide that was toxic to insects but harmless to humans.

The Nazis government required that all discoveries of potential military value be passed along to them.

The men’s employer, the giant I.G. Farben Corporation, complied, and its representatives were soon called to Berlin to discuss Tabun with the military.

Demonstrations of Tabun’s lethal effects at extraordinarily low concentrations made its potential as a devastating weapon obvious. Everything about Tabun was immediately classified as top secret and few were aware of its existence.

A weapon oriented Tabun research program began and construction of a plant designed for its production soon started. By mid 1943 thousands of tons of Tabun had been produced, loaded into artillery shells and bombs that were moved to storage sites throughout Germany.

The secrecy that surrounded Tabun was so effective that the Allies had no hint of its existence and had no comparable weapons to retaliate with if the Nazis used it.

Nerve agents such as Tabun, are among the deadliest chemicals ever devised and are now classified as weapons of mass destruction by the United Nations. (ANI)