Exclusive: North Korea tells China of preparations for fresh nuclear test - source

BEIJING (Reuters) - North Korea has told its key ally, China, that it is prepared to stage one or even two more nuclear tests this year in an effort to force the United States into diplomatic talks, said a source with direct knowledge of the message.

Further tests could also be accompanied this year by another rocket launch, said the source, who has direct access to the top levels of government in both Beijing and Pyongyang.

North Korea conducted its third nuclear test on Tuesday, drawing global condemnation and a stern warning from the United States that it was a threat and a provocation.

"It's all ready. A fourth and fifth nuclear test and a rocket launch could be conducted soon, possibly this year," the source said, adding that the fourth nuclear test would be much larger than the third, at an equivalent of 10 kilotons of TNT.

The tests will be undertaken, the source said, unless Washington holds talks with North Korea and abandons its policy of what Pyongyang sees as attempts at regime change.

North Korea also reiterated its long-standing desire for the United States to sign a final peace agreement with it and establish diplomatic relations, he said. North Korea remains technically at war with both the United States and South Korea after the Korean war ended in 1953 with a truce.

In Washington, U.S. State Department spokeswoman Victoria Nuland urged North Korea to "refrain from additional provocative actions that would violate its international obligations" under three different sets of U.N. Security Council resolutions that prohibit nuclear and missile tests.

North Korea "is not going to achieve anything in terms of the health, welfare, safety, future of its own people by these kinds of continued provocative actions. It's just going to lead to more isolation," Nuland told reporters.

The Pentagon also weighed in, calling North Korea's missile and nuclear programs "a threat to U.S. national security and to international peace and security."

"The United States remains vigilant in the face of North Korean provocations and steadfast in our defense commitments to allies in the region," said Pentagon spokeswoman Major Catherine Wilkinson.

Initial estimates of this week's test from South Korea's military put its yield at the equivalent of 6-7 kilotons, although a final assessment of yield and what material was used in the explosion may be weeks away.

North Korea's latest test, its third since 2006, prompted warnings from Washington and others that more sanctions would be imposed on the isolated state. The U.N. Security Council has only just tightened sanctions on Pyongyang after it launched a long-range rocket in December.

Pyongyang is banned under U.N. sanctions from developing missile or nuclear technology after its 2006 and 2009 nuclear tests.

North Korea worked to ready its nuclear test site, about 100 km (60 miles) from its border with China, throughout last year, according to commercially available satellite imagery. The images show that it may have already prepared for at least one more test, beyond Tuesday's subterranean explosion.

"Based on satellite imagery that showed there were the same activities in two tunnels, they have one tunnel left after the latest test," said Kune Y. Suh, a nuclear engineering professor at Seoul National University in South Korea.

Analysis of satellite imagery released on Friday by specialist North Korea website 38North showed activity at a rocket site that appeared to indicate it was being prepared for a launch (http://38north.org/2013/02/tonghae021413/).

NORTH 'NOT AFRAID' OF SANCTIONS

President Barack Obama pledged after this week's nuclear test "to lead the world in taking firm action in response to these threats" and diplomats at the U.N. Security Council have already started discussing potential new sanctions.

North Korea has said the test was a reaction to "U.S. hostility" following its December rocket launch. Critics say the rocket launch was aimed at developing technology for an intercontinental ballistic missile.

"(North) Korea is not afraid of (further) sanctions," the source said. "It is confident agricultural and economic reforms will boost grain harvests this year, reducing its food reliance on China."

North Korea's isolated and small economy has few links with the outside world apart from China, its major trading partner and sole influential diplomatic ally.

China signed up for international sanctions against North Korea after the 2006 and 2009 nuclear tests and for a U.N. Security Council resolution passed in January to condemn the latest rocket launch. However, Beijing has stopped short of abandoning all support for Pyongyang.

Sanctions have so far not discouraged North Korea from pursuing its nuclear ambitions.

"It is like watching the same movie over and over again," said Lee Woo-young, a professor at Seoul's University of North Korean Studies. "The idea that stronger sanctions make North Korea stop developing nuclear programs isn't effective in my view."

The source with ties to Beijing and Pyongyang said China would again support U.N. sanctions. He declined to comment on what level of sanctions Beijing would be willing to endorse.

"When China supported U.N. sanctions ... (North) Korea angrily called China a puppet of the United States," he said. "There will be new sanctions which will be harsh. China is likely to agree to it," he said, without elaborating.

He said however that Beijing would not cut food and fuel supplies to North Korea, a measure it reportedly took after a previous nuclear test.

He said North Korea's actions were a distraction for China's leadership, which was concerned that the escalations could inflame public opinion in China and hasten military build-ups in the region.

The source said he saw little room for compromise under North Korea's youthful new leader, Kim Jong-un. The third Kim to rule North Korea is just 30 years old and took over from his father in December 2011.

He appears to have followed his father, Kim Jong-il, in the "military first" strategy that has pushed North Korea ever closer to a workable nuclear missile at the expense of economic development.

"He is much tougher than his father," the source said.

(Additional reporting by Arshad Mohammed and Phillip Stewart in WASHINGTON; Writing by David Chance; Editing by Raju Gopalakrishnan, David Brunnstrom and Jackie Frank)

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World Bank sees 'enormous potential' in Myanmar

WASHINGTON: A World Bank official said Friday that Myanmar has "enormous potential" as it undergoes reforms, which have led the Washington-based lender to launch a drive to bring electricity to millions.

World Bank East Asia and Pacific vice president Axel van Trotsenburg, who visited this month to open the bank's first office in Yangon since 1987, said he was "very, very encouraged" and sensed a feeling of optimism in Myanmar.

"All in all, we believe the country has enormous potential, provided the reforms are sustained," van Trotsenburg told reporters.

"We see that they will require a lot of hard work, but also there will be solid support by the international community when those reforms are happening," he said.

The World Bank has announced $245 million in assistance for priority needs of Myanmar, formerly known as Burma, once the "rice bowl" of Asia, but which remains desperately poor after decades under military rule.

In a project announced during van Trotsenburg's visit to Myanmar, the World Bank is supporting the installation of gas turbines that aim to boost electricity production by two and a half compared to with the aging current sites.

Van Trotsenburg expected the effort to bring power to an additional five million people, lifting health, education and economic growth in a country where only one-quarter of the population now has access to electricity.

The World Bank last month also approved a $440 million zero-interest loan to Myanmar that will help the country improve its finances and pay back a bridge loan from Japan that allowed Yangon to clear its international arrears.

President Thein Sein launched a series of reforms after taking office in 2011, including freeing political prisoners, loosening censorship and allowing pro-democracy icon Aung San Suu Kyi to enter parliament.

- AFP/fa

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Microsoft Surface Pro hoarders try to make a quick buck

Surface Pro at a Microsoft Specialty Store in Glendale, Calif. As of this afternoon, the 128GB model is still out of stock at Los Angeles Microsoft stores.

(Credit:
Brooke Crothers)

The 128GB Surface Pro is a rare commodity at the moment. And stiff eBay asking prices reflect this.

In fact, it wouldn't be a stretch to say that some eBay vendors are hoarding the device, trying to cash in on the scarcity.

Though pretty common with hard-to-get Apple products, it's unusual to see this with a Windows product -- and it's Microsoft's first PC, to boot.

One seller, with a stack of at least 10 Pros, is asking $1,300 for the 128GB model. Other sellers are asking $1,399 and even $1,499. The regular price is $999 for the 128GB model.

So, why is there a shortage to begin with? Though conspiracy theories abound about a staged shortage by Microsoft, others (mostly analysts) believe that suppliers simply weren't ready to deliver enough product to meet demand.

The 128GB model has been virtually unobtainable this week at the Microsoft Store, Best Buy, and Staples. And the status has not changed as of this afternoon based on checks at national retailers.

The Pro is one of the first
Windows 8 tablets to run legacy Windows software and sport a relatively powerful Intel Ivy Bridge processor.

Microsoft Specialty Store on Glendale, Calif.

(Credit:
Brooke Crothers)

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NRA CEO: Obama gun control effort a "charade"

National Rifle Association CEO Wayne LaPierre told the Wayne Convention and Sport Show of the National Wild Turkey Federation in Nashville today that President Obama's State of the Union address exposed the "charade" that the president's gun control efforts were tied to protecting children.

"It's not about keeping kids safe in schools...They only care about their decades-long, decades-old gun control agenda," said LaPierre.

"In an hour-long speech, nowhere were the words 'school safety' to be found," he said. "Just think about that. Less than two months after saying we had to look at our schools, the president made not one mention in his entire speech of the need to improve security for our schoolchildren."

While it is true that Mr. Obama did not utter the exact phrase "school safety," he did specifically reference protecting children within the context of gun violence.

"Of course, what I've said tonight matters little if we don't come together to protect our most precious resource: our children," he said. "It has been two months since Newtown. I know this is not the first time this country has debated how to reduce gun violence. But this time is different. Overwhelming majorities of Americans -- Americans who believe in the Second Amendment -- have come together around common-sense reform, like background checks that will make it harder for criminals to get their hands on a gun. Senators of both parties are working together on tough new laws to prevent anyone from buying guns for resale to criminals. Police chiefs are asking our help to get weapons of war and massive ammunition magazines off our streets, because these police chiefs, they're tired of seeing their guys and gals being outgunned."

The president went on to call on Congress to hold a vote on gun control measures in the name of victims of gun violence, including 15-year-old Chicago native Hadiya Pendleton who was shot to death soon after performing at inauguration-related ceremonies last month.

LaPierre's speech follows an op-ed in which he suggested that Americans need guns to protect themselves from "Hurricanes. Tornadoes. Riots. Terrorists. Gangs. Lone criminals." He claimed that "superstorm" Sandy exposed "the hellish world that the gun prohibitionists see as their utopia" and that "Latin American drug gangs have invaded every city of significant size in the United States."

"It's not paranoia to buy a gun," he wrote. "It's survival."

In his remarks in Nashville, LaPierre renewed his call to put armed guards in every public school in the country and said that his warnings that Mr. Obama would work to "destroy our Second Amendment rights" if reelected were coming true. He railed against the president's proposal for universal background checks - which polls show are supported by more than nine in 10 Americans, including 85 percent of NRA members - saying "there's nothing universal about it at all."

"Think about it - criminals won't be part of that database," he said. "It's common sense. They'll steal their guns or they'll get everything else they want on the black market."

"It's going to be our names, the names of good people, that will be put in this massive database," LaPierre added.

The NRA CEO said that Mr. Obama has "taken the art of public deception and manipulation to a whole new level" and told the audience that NRA membership is five million strong and growing by "tens of thousands."

"For our Second Amendment freedom, Mr. President, we will stand and fight throughout this country for our freedom," he said. "We promise you that. Every single one of us from one end of the country to the other."

LaPierre left the stage after his 20-minute speech to a standing ovation.

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Pistorius' Girlfriend Saw Self as 'Brainy, Bombshell'

Reeva Steenkamp hit the headlines in America today as the alleged murder victim of her boyfriend, Olympic and Paralympic athlete Oscar "Blade Runner" Pistorius -- but in her homeland of South Africa, she already was known as a top model, a men's magazine cover girl and a budding reality show star.

Asked to describe herself in three words, Steenkamp chose, "brainy, blonde, bombshell," according to the website of "Tropika Island of Treasure 5," the reality show on which she was going to be featured starting Saturday.

"She was definitely destined for success," her publicist, Sarit Tomlinson of Capacity Relations, told the BBC. "She was a gorgeous girl both inside and out, and also had a brain. ... She had an incredible entrepreneurial spirit.

"She was an absolute angel -- the sweetest, sweetest human being, kind human being," she told the BBC. "It's very, very sad."

READ: Pistorius Kept Guns in Bedroom for Security: Journalist

PHOTOS: Paralympic Champion Charged with Murder

Ice Model Management/AP Photo

Runner Oscar Pistorius Arrested in Girlfriend's Killing Watch Video

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Steenkamp, who police said was 30 but was listed in profiles as 29, burned up social media, describing herself on Instagram as a "cover girl, law graduate, Instagram fanatic," and on Twitter as a "child of God."

"What do you have up your sleeve for your love tomorrow??? #getexcited #ValentinesDay," she tweeted Wednesday, perhaps referring to her boyfriend, Pistorius -- though maybe not.

She had plans to celebrate Valentine's Day this morning by giving a motivational speech to high schoolers in Johannesburg about love, valueing themselves and following their dreams, according to reports.

"I've realized that although Valentine's Day can be a cheesy, money-making stint to most people, it's a day of expressing love across the world," she told the South African celebrity site ZAlebs Wednesday, purportedly just hours before her death. "It doesn't have to only be between lovers, but by telling a friend that you care, or even an old person that they are still appreciated."

Browse through her Instagram account and you'll discover a trove of snapshots documenting vivid moments in the life of a young woman who brought smiles to the faces of those around her.

She was an advocate against violence against women, posting an image of a woman with a hand over her face and the caption, "I woke up in a happy safe home this morning. Not everyone did. Speak out against the rape of individuals in SA. RIP Anene Booysen. #rape #crime #sayNO."

Steenkamp encouraged her thousands of followers on Twitter to fight against sexual abuse, re-tweeting the day before she died, "WEAR BLACK THIS FRIDAY IN SUPPORT AGAINST #RAPE AND WOMAN ABUSE #BLACKFRIDAY."

She showed her religious side by offering this poem on Instagram on Jan. 29:

     "Dear God,

     "I need you. Everyday,
     "Every moment, Every second
     "that I breathe, I need you.

     "I am not strong enough on my own.

     Amen."

"He is listening," read one of the dozen responses to the post - mostly from today. "RIP dear."

Steenkamp was pronounced dead this morning in Pistorius' gated, luxury home in Pretoria, South Africa, with four gunshot wounds to her head and upper body. Pistorius, 26, has been charged with murder.

"I must just say that her future has been cut short," Mike Steenkamp, Reeva Steencamp's uncle, told the Associated Press. "The family at the moment, Barry and June, are devastated."

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Key U.S. general backs keeping Afghan forces at peak strength

WASHINGTON (Reuters) - The U.S. general nominated to oversee a vast region that includes Afghanistan on Thursday backed keeping Afghan forces at a peak strength of 352,000, contrary to current plans to shrink them after NATO declares the war over next year.

General Lloyd Austin, nominated to lead the U.S. military's Central Command, said at his Senate confirmation hearing that a more robust Afghan force, while more costly, would "hedge against any Taliban mischief" following America's longest war.

"Keeping the larger-size force would certainly reassure the Afghans, it would also reassure our NATO allies that we remain committed," Austin said.

The comments came two days after President Barack Obama announced in his State of the Union address that 34,000 U.S. troops - roughly half of the current U.S. force in Afghanistan - would be withdrawn by early 2014.

Obama reassured Americans that the costly, unpopular war was coming to an end, but he left unanswered bigger questions about America's exit strategy, including how many U.S. troops would stay in the country beyond 2014 to help train and advise the Afghans and to battle remnants of al Qaeda.

Obama also did not discuss the future size of the Afghan forces, although a White House fact sheet sent out after his address noted they would remain at 352,000 until "at least" early 2015.

Austin warned the Taliban would be waiting to test them.

"You could reasonably expect that an enemy that's been that determined, that agile, will very soon after we transition begin to try to test the Afghan security forces," Austin said.

Under current plans, the United States and its NATO allies will help build up the Afghan armed forces to 352,000 personnel, a number they are approaching, but the size of the force - which the allies will continue to fund - will be trimmed to 230,000 after 2015.

ECHOES OF IRAQ

The hearing frequently moved away from questions about the Afghan war and other current events to questions about Austin's past role as commander in Iraq, when a failure to strike an immunity deal for U.S. troops led to their total withdrawal in 2011.

Obama administration officials have warned that failure to strike an immunity deal with Afghanistan would also result in a pullout, but Afghan President Hamid Karzai and U.S. officials have expressed confidence a deal can be reached.

Republicans, who have criticized Obama's drawdown strategy in Afghanistan, noted that the president would have left a much smaller force in Iraq than Austin recommended, even if a deal had been struck.

Senator John McCain of Arizona lamented the lack of a U.S. presence in Iraq.

Pressed by Republicans, Austin acknowledged that the situation in Iraq was trending in a "problematic" direction, and agreed that a continued U.S. role would have helped bolster Iraqi forces.

When it came to Afghanistan, Senator Lindsay Graham of South Carolina warned Austin that if Obama sought an insufficient force for the post-2014 mission, he would refuse to vote for funding the war effort.

"It can be as low as 9 or 10,000, that I will stand with them," Graham said.

"If they overrule the commanders and create a force that cannot in my view be successful, I cannot in good conscience vote to continue this operation."

Graham said he would vote for Austin's confirmation once Austin spoke with the former commander of the Afghan mission, General John Allen, about his recommendations to Obama and reported back to the committee about his opinion.

(Reporting by Phil Stewart; Editing by David Brunnstrom)

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Republicans block vote on Obama's Pentagon nominee

WASHINGTON: US Senate Republicans successfully blocked Chuck Hagel's nomination to be President Barack Obama's next Pentagon chief on Thursday, forcing a 10-day delay in his confirmation vote.

By a vote of 58-40 with one member voting present, Democrats failed to overcome a procedural roadblock put up by Republicans who had demanded more time to receive answers to their questions. One senator was absent.

It leaves Hagel's nomination in limbo while the Senate takes a week-long recess.

Democrats needed 60 votes to end debate on the nomination and head to a floor vote. Senators said the failure to proceed marked just the third time that a so-called "filibuster" against a cabinet nominee was successful.

Democratic Majority Leader Harry Reid took to the floor immediately after the vote to rail against the move, which he saw as "embarrassing the president" at a time of tensions in the Middle East, ongoing war in Afghanistan and North Korea recently testing a nuclear device.

"Republicans have made an unfortunate choice to ratchet up the level (of partisanship) here in Washington," a furious Reid said.

He added that he would call Hagel, a Republican former senator, and say, "I'm sorry for the president, I'm sorry for the country and I'm sorry for you. But I'm not going to give up on you."

In a separate statement, Reid expressed bafflement about what he described as "one of the saddest spectacles I have witnessed in my 27 years in the Senate."

The defeat does not doom Hagel's nomination to lead the Pentagon in Obama's second term, and Reid has already said he would call another procedural vote on the first working day after next week's break.

"I think we all need to take a deep breath," a White House official said on condition of anonymity.

"Senator Hagel is going to be confirmed, if not tomorrow then when the Senate returns from recess."

Republicans had blocked Reid's previous attempts to bring Hagel's nomination up for a vote on the Senate floor, demanding more details on his finances and on Obama's management of a September attack on the US consulate in Benghazi.

Several Republicans including Senators John McCain and Lindsey Graham said Thursday they were ready to drop their blocking tactics, but only after the recess, frustrating White House demands for a vote by the end of this week.

"I really really do hope that nothing happens during the next 10 days, when we won't have a secretary of defense.... I hope nothing goes wrong," Reid said.

Outgoing Secretary of Defense Leon Panetta has discussed his pending departure from Washington and return to California, but officials stress that he will officially remain secretary until a replacement is confirmed.

- AFP/jc

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PS4 prototype controller revealed?

Sony will reveal the future of the PlayStation brand at a New York City event next Wednesday, but one of the company's surprises may have just leaked. Destructoid has obtained an image of what is rumored to be the
PlayStation 4's new touch screen-equipped controller.

A "trusted source" has confirmed to IGN that the leaked PlayStation 4 controller image is indeed real, but is only a prototype. The final design could change. An industry source confirmed the same to gaming blog Kotaku.

The image matches up with previous reports, which suggested the PS4 controller would be similar in shape to the DualShock and include a front-facing touch screen. The rumored controller also does not have Start, Select, or Share buttons on its face, matching up with a past report that these buttons had been shifted or removed.

The controller in question also features some sort of illuminated light on its top as well as audio output functionality, similar to the
Wii. The pad is plugged into what looks like a development kit, though this is unclear.

Read more of "PS4 prototype controller revealed?" at GameSpot.

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American, US Airways set to clinch merger

(MoneyWatch) American Airlines and US Airways (LCC) are set to announce a merger that would create the world's biggest carrier.

Under the deal, which is expected to be unveiled Thursday if the timeline isn't moved up sooner and there are no last-minute snags, the combined airline would keep the "American" name. It would still require federal approval, although that is virtually ensured. US Air CEO Doug Parker is expected to lead the combined company.

A merger of US Air and American would surpass a 2010 tie-up between United Airlines (UAL) and Continental and a 2008 deal joining Delta (DAL) and Northwest. The merged American would be the largest carrier and sport a market valuation of roughly $10 billion.

Although airlines tout such consolidation as a way to cut costs and expand service amid intense competition, whether industry mergers raise fares is an open question. Many analysts say yes because reduced competition in any business often results in higher prices. One study found that ticket prices went up more than 20 percent between Detroit and Atlanta after Delta bought Northwest. Fares went up more than 30 percent on routes between Chicago and Houston, as well as Newark to San Francisco, after the United-Continental deal.

In seeking to run more efficiently, merging airlines also often cut capacity and eliminate routes. 

Play Video

American close to merger with U.S. Airways

Other analysts are more optimistic about the potential benefits to travelers. They say the three largest U.S. airlines still must compete with discount carriers such as Southwest (LUV), which has flourished for years by offering low-cost flights and no-frills service.

The consolidation trend is largely blamed on the price of fuel. Oil now costs so much more per barrel than it did 10 years ago that one analyst says the margin of profit on many flights has shrunk to the value of a single seat. That means an airline can lose money if it flies with one single empty middle seat. The days of elbow room are over.

American Airlines has been operating under court supervision since declaring bankruptcy in November 2011.

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Ship Stranded: Love Boat to Horror Honeymoon

A Texas couple's fantasy wedding quickly turned into a nightmare honeymoon when the fire-damaged Carnival Cruise ship carrying them became stranded in the Gulf of Mexico.

Rob Mowlam, 37, and Stephanie Stevenson, 27, of Nederland, Texas, got married on the Carnival Triumph on Saturday. The four-day cruise was meant to be back to shore on Monday, but was left disabled by an engine fire on Sunday.

The ship is being slowly towed to shore and is expected to dock in Mobile, Ala., on Thursday if weather permits. The vessel is without air conditioning, many working toilets and some restaurant service. Passengers, many who are sleeping in tents on deck, have told ABC News the smell on the ship is foul.

That is the honeymoon setting for Mowlam and Stevenson.

"[Rob Mowlam] had been with his girlfriend, or fiance, for a long period of time and they just took the next step," Mowlam's brother James Mowlam III told ABCNews.com. "The captain is the king of the world when they're on the boat and he hitched them up."

James Mowlam said he was shocked when he heard about the stranded boat and the increasingly dire conditions on the ship.

"It is an atrocious scene to be subjected to," he said.

Mowlam said he has not been able to communicate with his brother, but that his father has had sporadic communication with him.

"It would be my guess that this would probably not be on anyone's great list of memorable wedding experiences," Mowlam said with a laugh. "Although, my mom told him that she was hoping they had a memorable wedding and I think this would classify as a memorable wedding experience."

Lt. Cmdr. Paul McConnell/U.S. Coast Guard/AP Photo

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The bride's brother, Justin Davis, told ABCNews.com that his sister works for a doctor's office and the cruise was a gift from the doctor to the staff.

Davis has not been able to speak to Stevenson but said that her two young sons are being cared for by her mother. He said his sister is tough and he guesses she's probably not scared.

"She might be a little aggravated at the situation, but I'd say she's [probably] handling it really well," he said.

Others on the ship do not seem to be handling the situation so well.

Elderly and disabled passengers aboard the ship are struggling to cope with the worsening conditions, according to at least one passenger.

"Elderly and handicap are struggling, the smell is gross," passenger Ann Barlow text-messaged ABC News overnight. "Our room is leaking sewage."

The head of Carnival Cruise Lines said the British-U.S.-owned company was working hard to ensure the thousands of passengers stranded on the disabled ship were as comfortable as possible while the vessel was being towed to a port in Alabama.

"I need to apologize to our guests and to our families that have been affected by a very difficult situation," Carnival Cruise Lines president and CEO Gerry Cahill said at a news conference Tuesday evening.

It was the first time since a fire erupted in Triumph's engine room Sunday, knocking out its four engines, that a company representative had spoken publicly. The Triumph, with roughly 4,200 people on board, was left bobbing like a 100,000-ton cork for more than 24 hours. Giant sea-faring tugboats then hooked up to the ship and began towing the nearly 900-foot-long ship to land.

Carnival spokeswoman Joyce Oliva told The Associated Press Tuesday that a passenger with a pre-existing medical condition was taken off the ship as a precaution. Everyone else will likely have to weather conditions such as scarce running water, no air conditioning and long lines for food.

Back on land, passenger Barlow's 11-year-old twins told ABC News Tuesday they are worried as more passengers continue to talk about living with limited power and sanitation.

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