Opposition beats Merkel team in knife-edge state poll: TV

BERLIN: Germany's centre-left opposition beat Chancellor Angela Merkel's ruling alliance Sunday in a cliffhanger state poll eight months ahead of a national vote, estimates on public television showed.

In one of the tightest German state races in recent memory, the Social Democrats together with the Greens eked out a one-seat lead in Lower Saxony, just ahead of the incumbent coalition of Merkel's Christian Democrats with the Free Democrats, broadcasters ARD and ZDF said.

After a suspense-packed night with broad implications for the September general election and Merkel's bid for a third four-year term, the centre-left camp said it aimed to use its victory to create fresh momentum.

"It shows the race until September is far from over," the Social Democrats' embattled challenger to Merkel, Peer Steinbrueck, told reporters as the results came in.

Merkel enjoys a robust lead in national polls thanks to her fierce defence of German interests in the eurozone crisis.

But pundits said the state poll could help shore up the battered campaign of her gaffe-prone challenger Steinbrueck.

Merkel's Christian Democrats (CDU) were the strongest party with around 36 percent of the vote, according to the estimates, which were still pending official confirmation.

Their candidate, state premier David McAllister, a half-Scot widely seen as a potential Merkel successor, had held out hope down to the last, calling it a "heart-stopping night".

Their coalition partners for the last decade in Lower Saxony, the pro-business Free Democrats (FDP), drew nearly 10 percent -- more than doubling many pollsters' expectations and tallying their best result in the state in post-war history.

But their cumulative result fell just short of the Social Democrats' (SPD) around 33 percent and the Greens' 14 percent, meaning the opposition can build a governing majority in Germany's fourth most populous state.

Polls had indicated the FDP risked slipping below the five-percent hurdle required for seats in the state parliament, but it got a lift from conservative voters splitting their ballots under Germany's two-vote system in a bid to rescue the coalition.

ARD television said around 101,000 voters who cast ballots for the conservatives in 2008 had plumped for the FDP this time.

If the FDP failed to win representation, its embattled leader Philipp Roesler, who is also Merkel's vice-chancellor and who hails from Lower Saxony, was seen as likely to step down -- possibly as soon as Sunday night.

The outcome seemed to give him a reprieve, if perhaps only brief.

"It is a great day for the FDP in Lower Saxony but it is also a great day for the FDP and liberals in Germany as a whole," a beaming Roesler told reporters in Berlin.

Around 6.2 million people were called to the polls in Lower Saxony, a northwestern state home to European auto giant Volkswagen.

Steinbrueck, a former finance minister from Merkel's 2005-09 "grand coalition" government, was anointed by the SPD as its chancellor candidate late last year.

But he has run into trouble of late with revelations that he made around 1.25 million euros ($1.66 million) over the last three years in speaking fees, and with comments that Merkel owed much of her popularity to her gender.

The SPD's candidate in Lower Saxony, Stephan Weil, hinted that he had been forced to campaign in the face of headwinds out of Berlin.

"The SPD made gains, which is remarkable considering the not exactly easy conditions under which we fought for voters' support in recent weeks," he said.

After Lower Saxony, only the southern state of Bavaria is expected to vote before the September general election.

-AFP/ac

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Schmidt, daughter open up about trip to North Korea

Google's Eric Schmidt (right) arrives in North Korea on January 7 with former New Mexico Gov. Bill Richardson.

(Credit:
CBS News/Screenshot by CNET)

Google's Eric Schmidt is back from his much-publicized trip to North Korea, and he's got a few details to share about his humanitarian mission.

The search giant's executive chairman had already revealed some of the reasoning behind his trip to reporters during a briefing a week and a half ago at the Beijing airport, saying that his private delegation urged North Korean officials to open up global Internet access if they wanted to strengthen their economy. The delegation was led by former New Mexico Gov. Bill Richardson, who is also a former ambassador to the U.N.

In a post last night on his Google+ page, Schmidt opened up more about his thoughts on Internet access in the country, explaining that North Korea's decision to essentially isolate itself from the global Net is going to "make it harder for them to catch up economically."

He noted that while Internet access is possible for government officials and the military and while there is a private intranet set up for universities, the general public does not have access to the Internet unless someone is watching them.

Furthermore, he said that it was obvious that the country's technology is limited. "There is a 3G network that is a joint venture with an Egyptian company called Orascom. It is a 2100 Megahertz SMS-based technology network, that does not, for example, allow users to have a data connection and use smart phones," he wrote.

A separate blog post written by Schmidt's daughter Sophie, who accompanied him on the trip, included even more details of their visit, along with a series of photos. She described the country as "very, very cold" and "very, very strange."

"Nothing I'd read or heard beforehand really prepared me for what we saw," she wrote.

The delegation apparently visited the Palace of the Sun, Kim Il Sung's former office and now the national mausoleum where Kim Il Sung's and Kim Jong Il's bodies lie in state, as well as the Kim II Sung University e-Library, which she described eerily as a room of 90 desks, all manned, with just one problem: "No one was actually doing anything. A few scrolled or clicked, but the rest just stared."

Some other interesting tidbits from her post:

• We left our phones and laptops behind in China, since we were warned they'd be confiscated in NK, and probably infected with lord knows what malware.
• Our trip was a mixture of highly staged encounters, tightly-orchestrated viewings and what seemed like genuine human moments. We had zero interactions with non-state-approved North Koreans and were never far from our two minders (2, so one can mind the other).
• Ordinary North Koreans live in a near-total information bubble, without any true frame of reference.
• We were told well ahead of time to assume that everything was bugged: phones,
  cars, rooms, meetings, restaurants and who knows what else.
• This is a country in a permanent revolutionary state, and everything you see reflects that dug-in, determined, fiercely independent quality.
• Their mobile network, Koryolink, has between 1-2 million subscribers. No data service, but international calls were possible on the phones we rented. Realistically, even basic service is prohibitively expensive, much like every other consumption good (fuel, cars, etc.).
• North Korea has a national intranet, a walled garden of scrubbed content taken from the real Internet. Our understanding is that some university students have access to this.
  

The State Department had frowned upon the group's visit to the country, saying that the timing wasn't right. A department spokeswoman cited recent missile launches by North Korea as a reason for discouraging the mission.

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Algerian assault ends crisis, 23 hostages dead

Last Updated 4:18 p.m. ET

AIN AMENAS, Algeria Algerian special forces stormed a natural gas complex in the middle of the Sahara desert on Saturday in a "final assault" that ended a four-day-old hostage crisis, according to the state news agency and two foreign governments.

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Panetta: "We know that lives have been lost" in Algeria

The Algerian government says 32 militants and 23 captives were killed during a three-day military operation to end the hostage crisis.

The provisional death toll was issued by the Interior Ministry on Saturday after the special forces operation crushed the last holdout of militants at the gas refinery, resulting in 11 extremists killed along with seven hostages.

A total of 685 Algerian and 107 foreigner workers were freed over the course of the standoff, which began on Wednesday, the statement added.

The military also confiscated machine guns, rocket launchers, missiles and grenades attached to suicide belts.

The ministry added that the militants involved consisted of 32 men of various nationalities, including three Algerians.

An earlier report said the army was forced to intervene Saturday after a fire broke out in the plant, and said the militants killed the hostages. It wasn't immediately possible to verify who killed the captives.

The report, quoting a security source, also didn't give the nationalities of the dead.

The Ain Amenas plant is jointly run by BP, Norway's Statoil and Algeria's state-owned oil company. The governments of Norway and Britain said they received confirmation the siege was over.

A high-resolution satellite image of the Amenas gas facility taken on Dec 7, 2012.

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GeoEye Satellite Image

The entire refinery was mined with explosives and set to blow up, the Algerian state oil company Sonatrach said in a statement, adding that the process of clearing the explosives had begun. The Algerian media reported that the militants had planned to blow up the complex.

The siege transfixed the world after radical Islamists linked to al Qaeda stormed the complex, which contained hundreds of plant workers from all over the world.

Algeria's response to the crisis was typical of the country's history in confronting terrorists — military action over negotiation — and caused an international outcry from countries worried about their citizens. Algerian military forces twice assaulted the areas where the hostages were being held with minimal apparent negotiation — first on Thursday and then on Saturday.

The latest deaths bring the official Algerian tally of dead to 19 hostages and 29 militants, although reports on the number of dead, injured and freed have been contradictory throughout the crisis. Militants originally said they had seized 41 foreign hostages.

The al Qaeda-linked militants attacked the plant Wednesday morning. They crept across the border from Libya, 60 miles (100 kilometers) away, and fell on a pair of buses taking foreign workers to the airport. The buses' military escort drove off the attackers in a blaze of gunfire that sent bullets zinging over the heads of crouching workers. A Briton and an Algerian — probably a security guard — were killed.

Frustrated, the militants turned to the vast gas complex, divided between the workers' living quarters and the refinery itself, and seized hostages, the Algerian government said. The gas flowing to the site was cut off.

On Thursday, Algerian helicopters opened fire on a convoy carrying both kidnappers and their hostages, resulting in many deaths, according to witnesses.

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Algeria Hostage Crisis Over, One American Dead

After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.

One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.

But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."

Inside Algerian Hostage Crisis, One American Dead Watch Video

American Hostages Escape From Algeria Terrorists Watch Video

In a statement, President Obama said, "Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria. The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."

According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.

The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.

Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.

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Algerian army stages "final assault" on gas plant

ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army carried out a dramatic final assault to end a siege by Islamist militants at a desert gas plant on Saturday in which 23 hostages were killed, many of them believed to be foreigners, the interior ministry said.

Thirty-two al Qaeda-linked militants were killed in the army operation to recapture the complex, according to a provisional toll from the ministry. A statement said 107 foreign hostages and 685 Algerian hostages had survived.

Militants seized the remote compound in the Sahara desert before dawn on Wednesday, taking a large number of hostages, including foreigner workers, and booby-trapped the compound with explosives.

The crisis marked a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

The gas plant near the town of In Amenas was home to expatriate workers from Britain's BP, Norway's Statoil, Japanese engineering firm JGC Corp and others. One American and one British citizen have been confirmed dead.

British Prime Minister David Cameron said on Saturday he feared for the lives of five British citizens still unaccounted for. Statoil said five of its workers, all Norwegian nationals, were still missing. Japanese and American workers are also unaccounted for.

"We feel a deep and growing unease ... we fear that over the next few days we will receive bad news," Statoil Chief Executive Helge Lund said on Saturday. "People we have spoken to describe unbelievable, horrible experiences."

The Islamists' attack has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamist radicalism in northern Africa to centre stage.

British Foreign Secretary William Hague confirmed that Algerian military operations at the plant had been concluded.

"We understand that the site is not yet fully safe because of hazards such as booby traps and so they are still working on that," Hague said.

Some Western governments expressed frustration at not being informed of the Algerian authorities' plans to storm the complex. Algeria's response to the raid will have been conditioned by the legacy of a civil war against insurgents in the 1990s which claimed 200,000 lives.

HOSTAGES FREED

As the army closed in, 16 foreign hostages were freed, a source close to the crisis said. They included two Americans and one Portuguese.

BP's chief executive Bob Dudley said on Saturday four of its 18 workers at the site were missing. The remaining 14 were safe.

The captors said their attack on the Algerian gas plant was a response to the French offensive in Mali. However, officials say the elaborate raid would have been planned well before France launched its strikes.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified gas compound when it was seized on Wednesday.

Hundreds escaped on Thursday when the army launched a rescue operation, but many hostages were killed.

Before the interior ministry released its provisional death toll, an Algerian security source said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.

The U.S. State Department said on Friday one American, Frederick Buttaccio, had died but gave no further details.

U.S. Defense Secretary Leon Panetta said nobody was going to attack the United States and get away with it.

"We have made a commitment that we're going to go after al Qaeda wherever they are and wherever they try to hide," he said during a visit to London. "We have done that obviously in Afghanistan, Pakistan, we've done it in Somalia, in Yemen and we will do it in North Africa as well."

BURNED BODIES

Earlier on Saturday, Algerian special forces found 15 unidentified burned bodies at the plant, a source told Reuters.

The field commander of the group that attacked the plant is a fighter from Niger called Abdul Rahman al-Nigeri, according to Mauritanian news agencies. His boss, Mokhtar Belmokhtar, a veteran of fighting in Afghanistan and Algeria's civil war of the 1990s, appears not to have joined the raid.

Britain, Japan and other countries have expressed irritation that the army assault was ordered without consultation and officials grumbled at the lack of information.

But French President Francois Hollande said the Algerian military's response seemed to have been the best option given that negotiation was not possible.

"When you have people taken hostage in such large number by terrorists with such cold determination and ready to kill those hostages - as they did - Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation," Hollande said.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in the civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

France says the hostage incident proves its decision to fight Islamists in neighboring Mali was necessary. Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Rosalind Russell)

(This story was refiled to correct Algerian hostages)

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Football: Pogba at double for Juve as Palermo hold Lazio

MILAN: French teenager Paul Pogba scored a sensational brace to inspire depleted Juventus to a 4-0 rout of Udinese which helped the Serie A champions extend their lead over Lazio on Saturday.

Juve started their 21st match of the campaign with a three-point lead on both Napoli and Lazio but missing key midfielders Andrea Pirlo, Claudio Marchisio and Arturo Vidal due to recent injuries.

After Lazio had to settle for a share of the points in a 2-2 draw at strugglers Palermo, Juve took full advantage.

The champions now have a five-point lead over Lazio, who sit second on 43 points, and will be hoping Napoli, third on 42, find similar trouble Sunday in their away game against Fiorentina.

Pogba, signed in the off-season on a free transfer from Manchester United, had already scored two sensational goals earlier this season.

And the 19-year-old broke the deadlock near the end of a frustrating first half for the hosts by unleashing a 30-metre screamer which hit the crossbar before beating Daniele Padelli in the Udinese goal.

Juventus were struggling to build on their lead in the early stages of the second half when Udinese were unlucky not to score on the counter.

But again Pogba came to the rescue, this time with a long-range daisy-cutter which slotted into Padelli's bottom corner to give Juve a 2-0 lead.

Six minutes later Juve striker Mirko Vucinic made it 3-0 when Padelli parried the Montenegrin's close-range effort over his own body and into the net.

Udinese threatened through top striker Antonio Di Natale, who saw a snapshot shave the top of the crossbar.

However the former Italy striker appeared to be showing the effects of recent flu-like symptoms, which meant he only appeared early in the second half.

With 10 minutes to play, second half substitute Alessandro Matri made it 4-0 for the hosts when he latched on to a Vucinic through ball to nutmeg Padelli.

Despite missing Miroslav Klose, Abdoullay Konko and Ederson, Lazio had hoped to secure a win that would have kept them three points behind Antonio Conte's league leaders.

But after Vladimir Petkovic's side were stunned by two goals in less than two minutes the visitors were forced to launch a late fighback to grab a share of the points

Sergio Floccari gave Lazio a 10th minute lead when he headed Cristian Ledesma's cross over the static Samir Ujkani in the Palermo goal, only for Arevalo Rios (70) and Paulo Dybala (71) to give the hosts a shock lead.

It took a penalty from Brazilian Hernanes, after Floccari had been fouled in the box, for Lazio to draw level with six minutes left to play.

- AFP/de

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Microsoft blazes trail to next PC

Microsoft Surface Pro: the design isn't perfect, but the fact that it can function as a standalone tablet and is thin and light puts it ahead of the convertible-laptop pack.

(Credit:
CNET)

PC makers take note. Microsoft is pioneering the next PC.

Here are two simple reasons why the Surface Pro makes a good case as the template for the new PC. One, Microsoft realized that the device's electronics should go behind the glass, not under the keyboard. Two, the device uses a real processor.

Let's address the electronics first. Most of the newfangled laptops I saw at
CES were convertibles. That is, the displays are not detachable because the core electronics are under the keyboard, just like your father's laptop.

And most of them were unimpressive. The mechanics necessary to flip and/or slide the screen and convert the laptop to
tablet mode were more often than not kludgy and some seemed destined for mechanical problems down the pike.

And the more problematic designs weren't thin or light, either. At least not when compared with popular tablets like Apple's
iPad or Google's Nexus.

One of the few exceptions -- as I noted before -- was the HP EliteBook Revolve. That 11.6-inch design was about as well conceived as a convertible can be.

But there's a reason for that: HP has been building Windows convertibles for ages. The EliteBook 2700 series has been around since the dawn of Windows XP. So, HP has this down to a science.

But, again, that's a rare exception at present. The future leans more toward a PC with the electronics behind the glass. And there's no better example right now than the Surface Pro.

Microsoft was bold enough to go with a mainstream third-generation Core Intel "Ivy Bridge" chip, not the slower Atom processor that most Windows 8 tablet and detachable makers have opted for.

Yeah, the battery life won't be great, but Microsoft, I think, knew (rightly so) that it would be crucified if it opted for the performance-challenged Atom chip, which isn't up to the task of running serious desktop applications on Windows 8.

Remember the netbook? That's one way to look at the first crop of Atom-based Windows 8 tablets: a netbook in tablet clothing. Microsoft didn't want to go there.

And give Lenovo some credit too. It showed off the ThinkPad Helix detachable at CES that separates from the base to become a full-fledged Ivy Bridge-based tablet, not unlike the Microsoft Surface Pro.

And Intel, I think, in its heart of hearts knows Atom isn't really up to the task. Thus, the revelation at CES of the most power-efficient Ivy Bridge yet. One of Intel's goals is to get these new Ivy Bridge chips -- as well as upcoming "Haswell" chips -- behind the glass, as Intel's Adam King told me at CES.

So, I would expect to see an increasing number of Windows 8 tablets and/or detachables sporting Intel's mainstream Haswell Core processors later this year.

And battery life will improve with Haswell. I would be fine with a Windows 8 tablet packing a real Intel chip that gets six hours of battery life. And a Haswell-based Surface tablet should meet or exceed this.

Sony Vaio Duo 11 convertible: The apparatus to support the display in tablet mode isn't exactly elegant.

(Credit:
CNET)

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At least one American dead in Algerian hostage crisis

Updated at 6:41 p.m. ET

An American in the Algerian hostage standoff in the Algerian desert has been killed, CBS News has learned.

Fredrick Buttaccio from Katy, Texas near Houston, was an employee of the oil company BP. It is unknown how he died, but U.S. government sources tell CBS News his body has been recovered and his family has been notified.

Who are the terrorists that Islamic militants want freed?

Meanwhile, a U.S. military plane has landed in Amenas, Algeria to pick up nine passengers - one American and eight foreign nationals - to be transported to Landstuhl, Germany, a military source told CBS News.

The flight, which contains an air medical evacuation team, was expected to have departed Algeria by Thursday afternoon.

It's not clear exactly how many total casualties have resulted from the fighting, but Algeria's state news agency reported that 12 foreign and Algerian workers had died since the start of the operation, citing an unidentified security source. That information could not be independently confirmed.

As CBS News correspondent Mark Phillips reported, the freed hostages told of how they fled in the confusion as the Algerian army attacked. Many were injured, some badly. One person said: "It happened so fast."

But it hasn't ended quickly, reported Phillips. The Algerians say they've freed nearly a hundred foreigners. And as they were being bused away, many thanked their rescuers. "They kept us all nice and safe and fought off the bad guys," said another person.

Also, more detail of the ordeal has emerged with the freed hostages. Some say they had explosives hung around their necks as they were placed in a convoy of vehicles by their captors. When the cars began to move, the Algerian Army units surrounding the site feared the captives were being taken out of the compound -- and opened fire.

The al Qaeda-linked Masked Battalio, led from afar by Mukhtar bil Mukhtar, may still be holding some of the roughly 30 foreigners still unaccounted for.

U.S. Secretary of State Hillary Clinton did not get into specifics on the crisis Friday afternoon, but described it as an "extremely difficult and dangerous situation" and called on the Algerian government to "preserve innocent life" in their efforts to fully resolve the crisis. Clinton spoke after the State Department said that Americans were still being held hostage.

The desert siege erupted Wednesday when the militants attempted to hijack two buses at the plant, were repulsed, and then seized the sprawling refinery, which is 800 miles south of Algiers. They had claimed the attack came in retaliation for France's recent military intervention against Islamist rebels in neighboring Mali, but security experts have said it must have taken weeks of planning to hit the remote site.

Since then, Algeria's government has kept a tight grip on information about the siege.

The militants had seized hundreds of workers from 10 nations at Algeria's remote Ain Amenas natural gas plant. The overwhelming majority were Algerian and were freed almost immediately.

Algerian forces retaliated Thursday by storming the plant in an attempted rescue operation that left leaders around the world expressing strong concerns about the hostages' safety.

Militants claimed 35 hostages died on Thursday when Algerian military helicopters opened fire as the Islamists transported the hostages around the gas plant. While Algerian officials acknowledged some hostage deaths, the number could not be independently confirmed.

On Friday, trapped in the main refinery area, the militants offered to trade two American hostages for two prominent terror figures jailed in the United States. Those the militants sought included Omar Abdel Rahman, the blind sheikh who was convicted of plotting to blow up New York City landmarks and considered the spiritual leader of the 1993 World Trade Center bombing, and Aafia Siddiqui, a Pakistani scientist convicted of shooting at two U.S. soldiers in Afghanistan.

But U.S. Defense Secretary Leon Panetta said there would be "no place to hide" for anyone who looks to attack the United States.

"Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere," Panetta said Friday.

Workers kidnapped by the militants came from around the world — Americans, Britons, French, Norwegians, Romanians, Malaysians, Japanese, Algerians.

World leaders have expressed strong concerns in the past few days about how Algeria was handing the situation and its apparent reluctance to communicate.

Terrorized hostages from Ireland and Norway trickled out of the plant. BP, which jointly operates the plant, said it had begun to evacuate employees from Algeria.

A U.S. military C-130 transport plane flew a number of people including former Ain Amenas hostages from the Algerian capital of Algiers to a U.S. facility in Europe, a U.S. official said. He declined to be specific about the destination, their nationalities or the extent of the wounds that he said some had.

A flood of foreign energy workers were being evacuated from the North African nation amid security concerns.

BP evacuated one U.S. citizen along with other foreign energy workers from Algeria to Mallorca and then London. The oil giant said three flights left Algeria on Thursday, carrying 11 BP employees and several hundred energy workers from other companies.

A fourth plane was taking more people out of the country on Friday, BP said.

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One American Confirmed Dead in Algeria

U.S. officials told ABC News that at least one American has been killed in the hostage standoff at an Algerian gas plant, and the family of the deceased American has been notified.

An al Qaeda-linked group called the Masked Brigade and led by the one-eyed jihadi Mokhtar Belmokhtar raided the BP joint venture facility in In Amenas on Wednesday, taking an undetermined number of hostages from more than half a dozen nations, including at least two Americans.

On Friday, the group demanded the release of two convicted terrorists held in U.S. prisons, including the "blind sheikh" who helped plan the first attack on New York's World Trade Center, in exchange for the freedom of two American hostages, according to an African news service.

The terror group reportedly contacted a Mauritanian news service with the offer. In addition to the release of Omar Abdel-Rahman, who planned the 1993 World Trade Center bombing, they demanded the release of Aifia Siddiqui, a Pakistani scientist who shot at two U.S. soldiers in Afghanistan in 2008.

Asked about the unconfirmed report of a proposed swap, State Department spokeswoman Victoria Nuland said firmly, "The United States does not negotiate with terrorists." She repeated the statement again when questioned further. She also said she was not prepared to get into any details about the status of Americans in "an ongoing hostage situation."

At least three Americans were being held hostage by the militants when the Algerian military mounted a rescue operation at the facility Thursday that reportedly resulted in casualties.

Five other Americans who were at the facility when it was attacked by the terrorists are now safe and believed to have left the country, according to U.S. officials.

Algeria Hostage Situation: Military Operation Mounted Watch Video

Reports that dozens of hostages were killed during the Algerian military's attempt to retake the compound have not been confirmed, though Algeria's information minister has confirmed that there were casualties. It's known by U.S. and foreign officials that multiple British, Japanese and Norwegian hostages were killed.

According to an unconfirmed report by an African news outlet, the militants said seven hostages survived the attack, including two Americans, one Briton, three Belgians and a Japanese national. U.S. officials monitoring the case had no information indicating any Americans have been injured or killed, but said the situation is fluid and casualties cannot be ruled out.

On Friday, a U.S. military plane evacuated between 10 and 20 people in need of medical attention, none of them American, from In Amenas and took them to an American medical facility in Europe. A second U.S. plane is preparing to evacuate additional passengers in need of medical attention.

British Prime Minister David Cameron told parliament today that the terror attack "appears to have been a large, well coordinated and heavily armed assault and it is probable that it had been pre-planned."

"The terrorist group is believed to have been operating under Mokhtar Belmokhtar, a criminal terrorist and smuggler who has been operating in Mali and in the region for a number of years," said Cameron.

Cameron said Algerian security forces are still in action at the facility. On Thursday, he said that the situation was "very bad … A number of British citizens have been taken hostage. Already, we know of one who has died. ... I think we should be prepared for the possibility for further bad news, very difficult news in this extremely difficult situation."

The kidnappers had earlier released a statement saying there are "more than 40 crusaders" held "including 7 Americans."

U.S. officials had previously confirmed to ABC News that there were at least three Americans held hostage at the natural gas facility jointly owned by BP, the Algerian national oil company and a Norwegian firm at In Amenas, Algeria.

"I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation," said Panetta. "I don't think there's any question that [this was] a terrorist act and that the terrorists have affiliation with al Qaeda."

He said the precise motivation of the kidnappers was unknown.

"They are terrorists, and they will do terrorist acts," he said.

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Foreigners still trapped in Sahara hostage crisis

ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were captive or missing inside a desert gas plant on Saturday, nearly two days after the Algerian army launched an assault to free them that saw many hostages killed.

The standoff between the Algerian army and al Qaeda-linked gunmen - one of the biggest international hostage crises in decades - entered its fourth day, having thrust Saharan militancy to the top of the global agenda.

The number and fate of victims has yet to be confirmed, with the Algerian government keeping officials from Western countries far from the site where their countrymen were in peril.

Reports put the number of hostages killed at between 12 to 30, with possibly dozens of foreigners still unaccounted for - among them Norwegians, Japanese, Britons, Americans and others.

By nightfall on Friday, the Algerian military was holding the vast residential barracks at the In Amenas gas processing plant, while gunmen were holed up in the industrial plant itself with an undisclosed number of hostages.

Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified compound when it was seized before dawn on Wednesday by Islamist fighters who said they wanted a halt to a French military operation in neighboring Mali.

Hundreds escaped on Thursday when the army launched an operation, but many hostages were killed in the assault. Algerian forces destroyed four trucks holding hostages, according to the family of a Northern Irish engineer who escaped from a fifth truck and survived.

Leaders of Britain, Japan and other countries have expressed frustration that the assault was ordered without consultation and officials have grumbled at the lack of information. Many countries also withheld details about their missing citizens to avoid releasing information that might aid the captors.

An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.

Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.

The base was home to foreign workers from Britain's BP, Norway's Statoil and Japanese engineering firm JGC Corp and others.

Norway says eight Norwegians are still missing. JGC said it was missing 10 staff. Britain and the United States have said they have citizens unaccounted for but have not said how many.

The Algerian security source said 100 foreigners had been freed but 32 were still unaccounted for.

"We must be prepared for bad news this weekend but we still have hope," Norwegian Prime Minister Jens Stoltenberg said.

The attack has plunged international capitals into crisis mode and is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.

Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.

"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," Algeria's state news agency said on Friday, quoting a security source.

MULTINATIONAL INSURGENCY

Algerian commanders said they moved in on Thursday about 30 hours after the siege began, because the gunmen had demanded to be allowed to take their captives abroad.

A French hostage employed by a French catering company said he had hidden in his room for 40 hours under the bed before he was rescued by Algerian troops, relying on Algerian employees to smuggle him food with a password.

"I put boards up pretty much all round," Alexandre Berceaux told Europe 1 radio. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

The captors said their attack was a response to the French military offensive in neighboring Mali. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the single week since France first launched its strikes.

Paris says the incident proves its decision to fight Islamists in neighboring Mali was necessary.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in a civil war in the 1990s. But in the past two years the regional wing of Al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year, prompting the French intervention in that poor African former colony.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere... Those who would wantonly attack our country and our people will have no place to hide."

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humphries in Dublin; Writing by Philippa Fletcher and Peter Graff; Editing by Andrew Roche and Tom Pfeiffer)

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