Obama urges balanced approach to deficit reduction

WASHINGTON: US President Barack Obama urged Congress Saturday to find a balanced approach to deficit reduction, warning that steep budget cuts known as "the sequester" would hurt the economy and threaten thousands of American jobs.

"If the sequester is allowed to go forward, thousands of Americans who work in fields like national security, education or clean energy are likely to be laid off," Obama said in his weekly radio and Internet address.

"All our economic progress could be put at risk," he added.

The cuts, which are due to take effect on March 1, would also affect US military readiness, said the president.

"As our military leaders have made clear, changes like this affect our ability to respond to threats in an unstable part of the world," Obama pointed out.

The sequester was agreed by the president and Congress in 2011 to be so punishing that it would force Washington's warring political factions to forge an agreement on a way to cut the US budget deficit.

But amid partisan gridlock, no agreement on cutting the deficit has been reached and cuts due in March will slash defense spending by $55 billion and non-defense discretionary spending by $27 billion this year.

On Friday, the White House issued a doom-laden survey of the impact of sequestration.

It said 10,000 teacher jobs were at risk, food inspections could stop, 373,000 mental health patients would lose treatment and prosecutors could be furloughed.

The FBI would have 1,000 fewer officers, small business loans would be cut by $540 million, and around 600,000 women and children could lose government-funded emergency nutrition, according to the White House.

"The good news is, there's another option," Obama said.

He reminded his audience that two months ago, the White House and Congress faced a similar prospect of deep cuts and tax hikes, known as the "fiscal cliff".

On that occasion, said the president, Democrats and Republicans managed to come together and make "responsible cuts and manageable changes to our tax code" to pull back from the brink.

"This time, Congress should pass a similar set of balanced cuts and close more tax loopholes until they can find a way to replace the sequester with a smarter, longer-term solution," Obama said.

- AFP/ck

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Afzal Guru's life should become extinct, ruled SC

NEW DELHI: "The incident, which resulted in heavy casualties, had shaken the entire nation and the collective conscience of the society will only be satisfied if the capital punishment is awarded to the offender," the Supreme Court had said while upholding the death sentence of Afzal Guru.

Holding Afzal guilty of the conspiracy culminating in the attack on Parliament House, the apex court in its August 4, 2005, judgment added: "The conspirator, even though he may not have indulged in the actual criminal operations to execute the conspiracy, becomes liable for the punishment prescribed under Section 302 IPC (Indian Penal Code)."

Either death sentence or imprisonment for life is the punishment prescribed under Section 302 of the IPC.

The judgment delivered by Justice P Venkatarama Reddy and Justice PP Naolekar had also said that Afzal's case "has no parallel in the history of Indian Republic," and that it "presents us in crystal clear terms, a spectacle of rarest of rare cases".

"The very idea of attacking and overpowering a sovereign democratic institution by using powerful arms and explosives and imperilling the safety of a multitude of people's representatives, constitutional functionaries and officials of government of India and engaging into a combat with security forces is a terrorist act of gravest severity," it added.

The court said the "gravity of the crime conceived by the conspirators" to cause enormous casualties and dislocate the functioning of the government "cannot be described in words".

"The challenge to the unity, integrity and sovereignty of India by these acts of terrorists and conspirators, can only be compensated by giving the maximum punishment to the person who is proved to be the conspirator in this treacherous act," it added.

"The appellant (Afzal Guru), who is a surrendered militant and who was bent upon repeating the acts of treason against the nation, is a menace to the society and his life should become extinct. Accordingly, we uphold the death sentence," the apex court ruled.

"In the instant case, there can be no doubt that the most appropriate punishment is death sentence. That is what has been awarded by the trial court and the high court," the judgment said.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

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Online:

CDC: http://www.cdc.gov/flu/

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Blizzard Drops 2 Feet of Snow on Northeast

A behemoth storm packing hurricane-force wind gusts and blizzard conditions swept through the Northeast on Saturday, dumping more than 2 feet of snow on New England and knocking out power to 650,000 homes and businesses.

More than 28 inches of snow had fallen on central Connecticut by early Saturday, and areas of southeastern Massachusetts, Rhode Island and New Hampshire notched 2 feet or more of snow — with more falling. Airlines scratched more than 5,300 flights through Saturday, and New York City's three major airports and Boston's Logan Airport closed.

The wind-whipped snowstorm mercifully arrived at the start of a weekend, which meant fewer cars on the road and extra time for sanitation crews to clear the mess before commuters in the New York-to-Boston region of roughly 25 million people have to go back to work. But it also could mean a weekend cooped up indoors.

For a group of stranded European business travelers, it meant making the best of downtime in a hotel restaurant Friday night in downtown Boston, where snow blew outside and drifted several inches deep on the sidewalks.

The six Santander bank employees found their flights back to Spain canceled, and they gave up on seeing the city or having dinner out.

AP Photo/Standard Times, Peter Pereira

Blizzard 2013: Boston Families Brace for Extreme Weather Watch Video

"We are not believing it," said Tommaso Memeghini, 29, an Italian who lives in Barcelona. "We were told it may be the biggest snowstorm in the last 20 years."

The National Weather Service says up to 3 feet of snow is expected in Boston, threatening the city's 2003 record of 27.6 inches. A wind gust of 76 mph was recorded at Logan Airport.

In heavily Catholic Boston, the archdiocese urged parishioners to be prudent about attending Sunday Mass and reminded them that, under church law, the obligation "does not apply when there is grave difficulty in fulfilling this obligation."

Halfway through what had been a mild winter across the Northeast, blizzard warnings were posted from parts of New Jersey to Maine. The National Weather Service said Boston could get close to 3 feet of snow by Saturday evening, while most of Rhode Island could receive more than 2 feet, most of it falling overnight Friday into Saturday. Connecticut was bracing for 2 feet, and New York City was expecting as much as 14 inches.

Early snowfall was blamed for a 19-car pileup in Cumberland, Maine, that caused minor injuries. In New York, hundreds of cars began getting stuck on the Long Island Expressway on Friday afternoon at the beginning of the snowstorm and dozens of motorists remained disabled early Saturday as police worked to free them.

About 650,000 customers in the Northeast lost power during the height of the snowstorm, most of them in Massachusetts and Rhode Island. The Pilgrim Nuclear Power Plant in Plymouth, Mass., lost electricity and shut down Friday night during the storm. Authorities say there's no threat to public safety.

At least four deaths were being blamed on the storm, three in Canada and one in New York. In southern Ontario, an 80-year-old woman collapsed while shoveling her driveway and two men were killed in car crashes. In New York, a 74-year-old man died after being struck by a car in Poughkeepsie; the driver said she lost control in the snowy conditions, police said.

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Tens of thousands mourn slain Tunisia opposition leader

TUNIS (Reuters) - Tens of thousands of Tunisians took to the streets amid scattered violence on Friday to mourn secular opposition leader Chokri Belaid, whose assassination has plunged Tunisia deeper into political crisis.

Braving chilly rain, at least 50,000 people turned out for Belaid's funeral in his home district of Jebel al-Jaloud in the capital, chanting anti-Islamist and anti-government slogans.

It was Tunisia's biggest funeral since the death of Habib Bourguiba, independence leader and first president, in 2000.

Tunisia, cradle of the Arab uprisings, is riven by tensions between dominant Islamists and their secular opponents, and by frustration at the lack of social and economic progress since President Zine al-Abidine Ben Ali was ousted in January 2011.

"The people want a new revolution," shouted mourners in Tunis, who also sang the national anthem.

Crowds surged around an open army truck carrying Belaid's coffin, draped in a red and white Tunisian flag, from a cultural center in Jebel al-Jaloud towards the leafy Jallaz cemetery, as a security forces helicopter flew overhead.

Police fired teargas and shots in the air to disperse youths who were smashing cars near the cemetery, forcing some mourners to run from the choking clouds. Police also used teargas against demonstrators outside the Interior Ministry.

"Belaid, rest in peace, we will continue the struggle," mourners chanted, holding portraits of the politician killed near his home on Wednesday by a gunman who fled on a motorcycle.

Some demonstrators denounced Rachid Ghannouchi, leader of the ruling Islamist Ennahda party. "Ghannouchi, assassin, criminal," they chanted. "Tunisia is free, terrorism out."

Police fired teargas to disperse anti-government protesters throwing stones and petrol bombs in the southern mining town of Gafsa, a stronghold of support for Belaid, witnesses said.

Crowds there had chanted "The people want the fall of the regime", a slogan first used against Ben Ali.

CRADLE OF REVOLT

In Sidi Bouzid, the southern town where the revolt against the ousted strongman began, about 10,000 marched to mourn Belaid and shout slogans against Ennahda and the government.

Banks, factories and some shops were closed in Tunis and other cities in response to a strike called by unions in protest at Belaid's killing, but buses were running normally.

Tunis Air suspended all its flights because of the strikes, a spokesman for the national airline said, adding that flights operated by other airlines were not affected.

However, airport sources in Cairo said Egypt's national airline EgyptAir had canceled two flights to Tunisia after staff at Tunis airport joined the general strike.

After Belaid's assassination, Prime Minister Hamdi Jebali, an Islamist, said he would dissolve the government and form a cabinet of technocrats to rule until elections could be held.

But his own Ennahda party and its secular coalition partners complained they had not been consulted, casting doubt over the status of the government and compounding political uncertainty.

No one has claimed responsibility for the killing of Belaid, a lawyer and secular opposition figure.

His family have blamed Ennahda but the party has denied any hand in the shooting. Crowds have attacked several Ennahda party offices in Tunis and other cities in the past two days.

"Hope still exist in Tunisia," Fatma Saidan, a noted Tunisian actor, told Reuters at Belaid's funeral. "We will continue to struggle against extremism and political violence."

She called for national unity, saying: "We are ready to accept Islamists, but they don't accept us."

SECULAR SYMBOL

While Belaid had only a modest political following, his criticism of Ennahda policies spoke for many Tunisians who fear religious radicals are bent on snuffing out freedoms won in the first of the revolts that rippled through the Arab world.

Secular groups have accused the Islamist-led government of a lax response to attacks by ultra-orthodox Salafi Islamists on cinemas, theatres and bars in recent months.

The economic effect of political uncertainty and street unrest could be serious in a country which has yet to draft a new constitution and which relies heavily on the tourist trade.

Mohamed Ali Toumi, president of the Tunisian Federation of Travel Agencies, described the week's events as a catastrophe that would have a negative impact on tourism, but he told the national news agency TAP no cancellations had been reported yet.

France, which had already announced the closure of its schools in Tunis on Friday and Saturday, urged its nationals to stay clear of potential flashpoints in the capital.

"Unless unavoidable, it is best to stay away from the city center today, and steer clear of demonstrations and major road crossings or sensitive buildings," said Helene Conway-Mouret, minister in charge of French people living abroad.

The Austrian foreign ministry issued a similar warning.

The cost of insuring Tunisian government bonds against default rose to its highest level in more than four years on Thursday and ratings agency Fitch said it could further downgrade Tunisia if political instability continues or worsens.

(For an interactive look at Tunisia please click on http://link.reuters.com/tub85t )

(Additional reporting by Alexander Dziadosz in Cairo, Brian Love in Paris and Michael Shields in Vienna; Editing by Andrew Heavens)

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Police working with Interpol in global effort against match-fixing

SINGAPORE: The Singapore Police Force (SPF) is working with Interpol in relation to recent claims of a match-fixing syndicate originating in Singapore.

SPF said that evidence of alleged match-fixing needs to be further developed in order for Singapore law enforcement agencies to take concrete follow-up actions against the alleged suspects.

That is why the SPF will send its officers to Interpol to assist in the current investigations and join the global fight against match-fixing and illegal betting in football.

The authorities reiterated that Singapore remains highly committed in the fight against match-fixing and other trans-national crimes.

If evidence of such crimes exist, the police will pursue the case vigorously to bring the perpetrators to justice.

- CNA/al

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Quiet lunch shatters EU boycott of Narendra Modi

NEW DELHI: A quiet lunch between European Union ambassadors and prime ministerial contender Narendra Modi has shattered what remained of a decade-old informal boycott of the Hindu nationalist political leader.

The January 7 lunch at the German ambassador's residence in New Delhi will likely be seen as a major boost to Modi's quest for mainstream acceptance. The meeting went unpublicized until an Indian newspaper reported on it on Friday.

Modi, the charismatic chief minister of Gujarat, is praised by corporate India and foreign investors for presiding over an economic boom in his state.

However, charges he was complicit in riots in Gujarat that killed at least 1,000 people, most of them Muslims, have cast a shadow over his ambitions. Critics accuse him of not having done enough to stop the violence, allegations he has strenuously denied and have never been proven.

After the riots, he was shunned by western governments. Washington denied him a visa and EU ambassadors in Delhi cold-shouldered him. However, in recent years the EU's informal boycott had crumbled. Sweden and Denmark decided it was better to engage with him than ostracize him and Britain's ambassador met Modi in Gujarat last year.

Since being re-elected for a fourth successive term as chief minister in December, Modi has been on a seemingly unstoppable march towards becoming the Bharatiya Janata Party's candidate for prime minister in elections due by May 2014.

EU ambassador Joao Cravinho told CNN-IBN television that Modi was a "major political figure" and it was therefore important to listen to his views. European and US companies have made major investments in Gujarat.

Cravinho said the ambassadors had pressed Modi on the 2002 riots to find out "what went wrong, what should have happened, what the situation is now".

"We were pleased that he was able to tell us that because of a number of changes that he has introduced that such events could not be repeated in 2013," Cravinho said, without elaborating on what those changes were.

He did not respond to a Reuters request for comment, and the German embassy referred foreign media inquiries to Berlin.

If Modi is nominated as the BJP's candidate he could face Rahul Gandhi, heir to the Nehru-Gandhi dynasty, who is widely seen as the ruling Congress party's likeliest contender for the premiership if it and allies win a convincing majority.

Government minister Manish Tewari of the Congress party tweeted: "EU says accountability for Gujarat pogrom must be fixed. Does buck not stop with their lunch guest?"

Modi's challenge in projecting himself as a national leader was underscored this week when police were forced to use water cannon to disperse left-wing protesters at a New Delhi university where he was giving a speech.

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Southern diet, fried foods, may raise stroke risk

Deep-fried foods may be causing trouble in the Deep South. People whose diets are heavy on them and sugary drinks like sweet tea and soda were more likely to suffer a stroke, a new study finds.

It's the first big look at diet and strokes, and researchers say it might help explain why blacks in the Southeast — the nation's "stroke belt" — suffer more of them.

Blacks were five times more likely than whites to have the Southern dietary pattern linked with the highest stroke risk. And blacks and whites who live in the South were more likely to eat this way than people in other parts of the country were. Diet might explain as much as two-thirds of the excess stroke risk seen in blacks versus whites, researchers concluded.

"We're talking about fried foods, french fries, hamburgers, processed meats, hot dogs," bacon, ham, liver, gizzards and sugary drinks, said the study's leader, Suzanne Judd of the University of Alabama in Birmingham.

People who ate about six meals a week featuring these sorts of foods had a 41 percent higher stroke risk than people who ate that way about once a month, researchers found.

In contrast, people whose diets were high in fruits, vegetables, whole grains and fish had a 29 percent lower stroke risk.

"It's a very big difference," Judd said. "The message for people in the middle is there's a graded risk" — the likelihood of suffering a stroke rises in proportion to each Southern meal in a week.

Results were reported Thursday at an American Stroke Association conference in Honolulu.

The federally funded study was launched in 2002 to explore regional variations in stroke risks and reasons for them. More than 20,000 people 45 or older — half of them black — from all 48 mainland states filled out food surveys and were sorted into one of five diet styles:

—Southern: Fried foods, processed meats (lunchmeat, jerky), red meat, eggs, sweet drinks and whole milk.

—Convenience: Mexican and Chinese food, pizza, pasta.

—Plant-based: Fruits, vegetables, juice, cereal, fish, poultry, yogurt, nuts and whole-grain bread.

—Sweets: Added fats, breads, chocolate, desserts, sweet breakfast foods.

—Alcohol: Beer, wine, liquor, green leafy vegetables, salad dressings, nuts and seeds, coffee.

"They're not mutually exclusive" — for example, hamburgers fall into both convenience and Southern diets, Judd said. Each person got a score for each diet, depending on how many meals leaned that way.

Over more than five years of follow-up, nearly 500 strokes occurred. Researchers saw clear patterns with the Southern and plant-based diets; the other three didn't seem to affect stroke risk.

There were 138 strokes among the 4,977 who ate the most Southern food, compared to 109 strokes among the 5,156 people eating the least of it.

There were 122 strokes among the 5,076 who ate the most plant-based meals, compared to 135 strokes among the 5,056 people who seldom ate that way.

The trends held up after researchers took into account other factors such as age, income, smoking, education, exercise and total calories consumed.

Fried foods tend to be eaten with lots of salt, which raises blood pressure — a known stroke risk factor, Judd said. And sweet drinks can contribute to diabetes, the disease that celebrity chef Paula Deen — the queen of Southern cuisine — revealed she had a year ago.

The National Institute of Neurological Disorders and Stroke, drugmaker Amgen Inc. and General Mills Inc. funded the study.

"This study does strongly suggest that food does have an influence and people should be trying to avoid these kinds of fatty foods and high sugar content," said an independent expert, Dr. Brian Silver, a Brown University neurologist and stroke center director at Rhode Island Hospital.

"I don't mean to sound like an ogre. I know when I'm in New Orleans I certainly enjoy the food there. But you don't have to make a regular habit of eating all this stuff."

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Door-to-Door Search for Suspected Cop Killer

More than 100 police officers were going door-to-door and searching for new tracks in the snow in hopes of catching suspected cop-killer Christopher Dorner overnight in Big Bear Lake, Calif., before he strikes again, as laid out in his rambling online manifesto.

Police late Thursday night alerted the residents near Big Bear Lake that Dorner was still on the loose after finding his truck burning earlier in the day.

San Bernardino County Sheriff's spokeswoman Cindy Bachman said authorities can't say for certain that he's not in the area. More than half of the 400 homes in the area had been searched by police as of late Thursday. Police traveled in two-man teams.

Bachman urged people in the area not to answer the door, unless they know the person or see a law enforcement officer in uniform.

After discovering Dorner's burning truck near a Bear Mountain ski resort, police discovered tracks in the snow leading away from the vehicle. The truck has been taken to the San Bernardino County Sheriffs' crime lab.

Read More About Chris Dorner's Allegations Against the LAPD

Bachman would not comment on Dorner's motive for leaving the car or its contents, citing the ongoing investigation. Police are not aware of Dorner's having any ties to others in the area.

Los Angeles Manhunt: Ex-Cop Christopher Dorner Sought for Killing Spree Watch Video

Los Angeles Manhunt: Who Is Christopher Dorner? Watch Video

Christopher Dorner: Ex-Cop Wanted in Killing Spree Watch Video

She added that the search in the area would continue as long as the weather cooperates. About three choppers were being used overnight, but weather conditions were deteriorating, according to Bachman.

"He could be anywhere at this point," said San Bernardino County Sheriff John McMahon, who is expected to address the media later this morning.

Dorner, 33, a former Los Angeles police officer and Navy reservist, is suspected of killing one police officer and injured two others Thursday morning in Riverside, Calif. He was also accused of killing two civilians Sunday. And he allegedly released an angry "manifesto" airing grievances against police and warning of coming violence toward cops.

In the manifesto Dorner published online, he threatened at least 12 people by name, along with their families.
"Your lack of ethics and conspiring to wrong a just individual are over. Suppressing the truth will leave to deadly consequences for you and your family," Dorner wrote in his manifesto.

One passage from the manifesto read, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," it read. "I'm terminating yours."

Hours after the extensive manhunt dragged police to Big Bear Lake, CNN's Anderson Cooper said Dorner had sent him a package at his New York office that arrived Feb. 1, although Cooper said he never knew about the package until Thursday. It contained a DVD of court testimony, with a Post-It note signed by Dorner claiming, "I never lied! Here is my vindication."

PHOTOS: Former LAPD Officer Suspected in Shootings

It also contained a keepsake coin bearing the name of former Los Angeles Police Chief William J. Bratton that came wrapped in duct tape, Cooper said. The duct tape bore the note, "Thanks, but no thanks Will Bratton."

Bratton told Cooper on his program, "Anderson Cooper 360," that he believed he gave Dorner the coin as he was headed overseas for the Navy, Bratton's practice when officers got deployed abroad. Though a picture has surfaced of Bratton, in uniform, and Dorner, in fatigues, shaking hands, Bratton told Cooper he didn't recall Dorner or the meeting.

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Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden this week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Joe Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in a speech in Munich.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed in 1979 after the overthrow of Iran's pro-western monarchy and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL "ON THE TABLE"

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel sees its existence as directly threatened by the prospect of an nuclear-armed Iran, given Tehran's refusal to recognize the existence of the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ...are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his re-election last November may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams; Editing by William Maclean and Jon Boyle)

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