Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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U.N conference adopts extension of Kyoto climate accord

DOHA, Qatar (AP) -- A U.N. climate conference agreed Saturday to extend the Kyoto Protocol, a treaty that limits the greenhouse gas output of some rich countries but which will only cover about 15 percent of global emissions.

The extension was adopted by nearly 200 countries after hard-fought sessions and despite objections from Russia. The package of decisions also included vague promises of financing to help poor countries cope with climate change.

Though expectations were low for the two-week conference in Doha, many developing countries rejected the deal as insufficient to put the world on track to fight the rising temperatures that are raising sea levels. Some Pacific island nations see this as a threat to their existence.

"This is not where we wanted to be at the end of the meeting, I assure you," said Nauru Foreign Minister Kieren Keke, who leads an alliance of small island states. "It certainly isn't where we need to be in order to prevent islands from going under and other unimaginable impacts."

The 1997 Kyoto Protocol, which controls the greenhouse gas emissions of rich countries, expires this year. It was extended through 2020 to fill the gap until a wider global treaty is expected to take effect.

However, the second phase only covers about 15 percent of global emissions after Canada, Japan, New Zealand and Russia opted out.

The U.S. never joined Kyoto, partly because it didn't include China and other fast-growing developing countries.

Poor countries came into the talks in Doha demanding a timetable on how rich countries would scale up climate change aid for them to $100 billion annually by 2020 — a general pledge that was made three years ago.

But rich nations, including the United States, members of the European Union and Japan are still grappling with the effects of a financial crisis and were not interested in detailed talks on aid in Doha.

The agreement on financing made no reference to any mid-term financing targets, just a general pledge to "identify pathways for mobilizing the scaling up of climate finance."

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Coffee from an elephant's gut fills a $50 cup

GOLDEN TRIANGLE, Thailand (AP) — In the lush hills of northern Thailand, a herd of 20 elephants is excreting some of the world's most expensive coffee.

Trumpeted as earthy in flavor and smooth on the palate, the exotic new brew is made from beans eaten by Thai elephants and plucked a day later from their dung. A gut reaction inside the elephant creates what its founder calls the coffee's unique taste.

Stomach turning or oddly alluring, this is not just one of the world's most unusual specialty coffees. At $1,100 per kilogram ($500 per pound), it's also among the world's priciest.

For now, only the wealthy or well-traveled have access to the cuppa, which is called Black Ivory Coffee. It was launched last month at a few luxury hotels in remote corners of the world — first in northern Thailand, then the Maldives and now Abu Dhabi — with the price tag of about $50 a serving.

The Associated Press traveled to the coffee's production site in the Golden Triangle, an area historically known for producing drugs more potent than coffee, to see the jumbo baristas at work. And to sip the finished product from a dainty demitasse.

In the misty mountains where Thailand meets Laos and Myanmar, the coffee's creator cites biology and scientific research to answer the basic question: Why elephants?

"When an elephant eats coffee, its stomach acid breaks down the protein found in coffee, which is a key factor in bitterness," said Blake Dinkin, who has spent $300,000 developing the coffee. "You end up with a cup that's very smooth without the bitterness of regular coffee."

The result is similar in civet coffee, or kopi luwak, another exorbitantly expensive variety extracted from the excrement of the weasel-like civet. But the elephants' massive stomach provides a bonus.

Think of the elephant as the animal kingdom's equivalent of a slow cooker. It takes between 15-30 hours to digest the beans, which stew together with bananas, sugar cane and other ingredients in the elephant's vegetarian diet to infuse unique earthy and fruity flavors, said the 42-year-old Canadian, who has a background in civet coffee.

"My theory is that a natural fermentation process takes place in the elephant's gut," said Dinkin. "That fermentation imparts flavors you wouldn't get from other coffees."

At the jungle retreat that is home to the herd, conservationists were initially skeptical about the idea.

"My initial thought was about caffeine — won't the elephants get wired on it or addicted to coffee?" said John Roberts, director of elephants at the Golden Triangle Asian Elephant Foundation, a refuge for rescued elephants. It now earns 8 percent of the coffee's total sales, which go toward the herd's health care. "As far as we can tell there is definitely no harm to the elephants."

Before presenting his proposal to the foundation, Dinkin said he worked with a Canadian-based veterinarian that ran blood tests on zoo elephants showing they don't absorb any caffeine from eating raw coffee cherries.

"I thought it was well worth a try because we're looking for anything that can help elephants to make a living," said Roberts, who estimates the cost of keeping each elephant is about $1,000 a month.

As for the coffee's inflated price, Dinkin half-joked that elephants are highly inefficient workers. It takes 33 kilograms (72 pounds) of raw coffee cherries to produce 1 kilogram of (2 pounds) Black Ivory coffee. The majority of beans get chewed up, broken or lost in tall grass after being excreted.

And, his artisanal process is labor-intensive. He uses pure Arabica beans hand-picked by hill-tribe women from a small mountain estate. Once the elephants do their business, the wives of elephant mahouts collect the dung, break it open and pick out the coffee. After a thorough washing, the coffee cherries are processed to extract the beans, which are then brought to a gourmet roaster in Bangkok.

Inevitably, the elephant coffee has become the butt of jokes. Dinkin shared his favorites: Crap-accino. Good to the last dropping. Elephant poop coffee.

As far away as Hollywood, even Jay Leno has taken cracks.

"Here's my question," Leno quipped recently. "Who is the first person that saw a bunch of coffee beans and a pile of elephant dung and said, 'You know, if I ground those up and drank it, I'll bet that would be delicious.'"

Jokes aside, people are drinking it. Black Ivory's maiden batch of 70 kilograms (150 pounds) has sold out. Dinkin hopes to crank out six times that amount in 2013, catering to customers he sees as relatively affluent, open-minded and adventurous with a desire to tell a good story.

For now, the only places to get it are a few Anantara luxury resorts, including one at the Golden Triangle beside the elephant foundation.

At sunset one recent evening in the hotel's hilltop bar, an American couple sampled the brew. They said it surpassed their expectations.

"I thought it would be repulsive," said Ryan Nelson, 31, of Tampa, Florida. "But I loved it. It was something different. There's definitely something wild about it that I can't put a name on."

His wife Asleigh, a biologist and coffee lover, called it a "fantastic product for an eco-conscious consumer," since the coffee helps fund elephant conservation.

But how does it taste?

"Very interesting," she said, choosing her words carefully. "Very novel."

"I don't think I could afford it every day on my zookeeper's salary," she said. "But I'm certainly enjoying it sitting here overlooking the elephants, on vacation."

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Crowdfunding websites clamor for clearer regulation

LONDON (Reuters) – A new breed of internet-based financiers are calling for action to end regulatory uncertainty they say is preventing them from getting money to the small and medium-sized businesses that need it.

The so-called crowdfunding sector raises cash from members of the public to fund lending and investment. Regulators, however, have proved resistant to pleas for adjustments to rules that are tailored to more traditional markets.

“Operators of these platforms find it difficult to launch and flourish because existing EU and UK regulation does not fit the new models,” operators within the sector said in an open letter to EU and UK policymakers on Friday.

The plea coincides with a summit to discuss proposals for regulating a market that has developed in reaction to reduced bank lending to small and medium-sized enterprises because of tougher capital rules and greater regulatory scrutiny.

A host of alternative financing models have cropped up online, many allowing individuals to lend to, or invest in, companies with sums from as little as 10 pounds ($ 16). Massolution, a research and advisory firm specializing in the sector, says that 1.2 billion euros ($ 1.6 billion) was raised globally from crowdfunding last year.

Though some crowdfunding websites have tried to fit their operations within the existing regulatory framework, most remain largely outside it.

Part of the problem in drawing up appropriate regulation is the wide range of activities involved. Some offer debt, some equity, while others seek donations for charity or funding for creative projects in return for some non-financial reward.

With little or no expected returns from the latter, the main regulatory focus would be on equity crowdfunding and peer-to-peer lending.

As well as making sure that individuals are aware of the inherent risk involved with putting money in start-ups, the industry wants to avoid the risk of scams by ensuring that platforms vet businesses adequately.

LOST IN THE CROWD

Britain’s Financial Services Authority (FSA) warned in August that inexperienced investors should be aware of the risks in crowdfunding websites. A few days later United States securities regulators put crowdfunding at the top of their annual investment scams list.

Views differ about how to tackle these risks without stifling an increasingly important source of funding, and the matter is complicated by the varying rules already in place in different countries across Europe.

Measures taken by Seedrs, the only crowdfunding website to have received FSA approval, include requiring investors to pass a test to show that they understand the risks.

“It is hard to come up with a whole securities regulation; sometimes it does have to be a bit incremental and adaptive,” Seedrs founder Jeff Lynn said. “There is no question at all this is going to be a space that will continue to move.”

Some would like the operation of such platforms to be a distinct regulated activity, but others argue for smaller steps, such as a cap on the sums that people can invest or lend.

The British government, keen to improve the flow of finance to small businesses to boost the sluggish economy, has set up a working group to look at all aspects of policy on such sites.

The FSA said that it considers authorization of crowdfunding schemes case by case. The European Commission, meanwhile, is considered as so far having had a largely observational role.

Though the introduction of a separate regulated activity could still be some way off, the co-founder of peer-to-peer site Zopa, Simon Deane-Johns, believes that increased engagement with governments and regulators shows that things are moving in the right direction.

“Over the next year or two it should become progressively easier to set up a platform,” he said, “possibly through a combination of the FSA understanding more readily where things fit within the current regime and balancing that with some self-regulation.”

(Editing by Alexander Smith and David Goodman)

Internet News Headlines – Yahoo! News

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Hospital: Nurse involved in Kate hoax call dies

LONDON (AP) — A nurse who fell victim to a prank telephone call seeking information about the pregnant Duchess of Cambridge has died, the London hospital where she worked reported Friday.

The King Edward VII hospital said nurse Jacintha Saldanha took the hoax call by two Australian radio disc jockeys who impersonated Queen Elizabeth II and Prince Charles early Tuesday to elicit private information on the duchess's condition. Saldanha later transferred the call to the nurse caring for the duchess, who is suffering from acute morning sickness. That second nurse spoke freely about her 30-year-old patient, one of the world's most photographed women.

Saldanha was found dead early Friday. Police say her death is unexplained.

"Our thoughts and deepest sympathies at this time are with her family and friends," said John Lofthouse, the hospital's chief executive, said in a statement. "Everyone is shocked by the loss of a much-loved and valued colleague."

St. James's Palace, which speaks for Prince William, the duchess' husband, also expressed sadness about the nurse's death, but insisted that it had not complained about the hoax.

"On the contrary, we offered our full and heartfelt support to the nurses involved and hospital staff at all times," the palace said in a statement.

The prank phone call took place early Tuesday and the two radio personalities apologized the following day.

A woman using the often-mimicked voice of Britain's monarch asked after the duchess' health. She was told by the second nurse who took the call from Saldanha that the duchess, the former Kate Middleton, "hasn't had any retching with me and she's been sleeping on and off."

The nurse went on to say the duchess had had an uneventful night, as another radio employee pretended to be a dog yapping in the background. The alleged queen and prince then talked about traveling to the London hospital to check in on the patient, who is married to the queen's grandson, Prince William.

The hospital said it supported Saldanha in the aftermath of the call and that its phone protocols were under review.

The Australian station 2DayFM placed the recording of the conversation on its website but later said it was sorry. Australian radio personalities Mel Greig and Michael Christian apologized for the hoax.

"We were very surprised that our call was put through. We thought we'd be hung up on as soon as they heard our terrible accents," they said in a joint statement with the station at the time. "We're very sorry if we've caused any issues and we're glad to hear that Kate is doing well."

However, the disc jockeys also described the call as the "easiest prank call ever made," and promoted it through the station's website and social media accounts.

The Sydney-based 2Day FM continued promote its prank call on air early Saturday morning. It described the hoax as "the prank call the world is talking about" before playing clips of news programs reporting on the original call.

Christian's Twitter account has since been taken down.

Officials from St. James's Palace have said the duchess is not yet 12 weeks pregnant. The child would be the first for her and Prince William and become third in line to the British throne, after Charles and William.

___

Associated Press Writers Paisley Dodds and Cassandra Vinograd contributed to this story.

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Jobless rate hits four-year low, but economists skeptical

As much as his fans scream and yell when he walks on water or levitates, most people have a pretty good idea that magician/illusionist Criss Angel is somehow tricking them and not actually defying the laws of physics.

In much the same why, when this morning's surprisingly strong jobs data came out, professional investors and economists alike knew immediately that something was up. In a month when one of the nation's most disruptive storms in recent history occurred, for the Bureau of Labor Statistics to report that Hurricane Sandy did not have an impact and the unemployment rate fell to a four-year low of 7.7% and 146,000 new jobs were created, that defies the laws of reason.

"It's a little hard to believe quite honestly," says Dan North, chief economist at Euler Hermes, in the attached video. "If there's any report that deserved caveats and conditions it's this one."

And he's not alone. Peter Kenny from Knight Capital calls the report a ''head scratcher'' in a note to clients today, saying he never looks a gift horse in the mouth, but just can't get comfortable with the numbers. And Andrew Wilkinson, chief economic strategist at Miller, Tabak & Co., who correctly called for a much stronger than expected number yesterday, is already expecting the 20,000 reduction in construction jobs to be short-lived, reminding clients that "we know what follows any disaster."

Related: Resist Urge to Panic on November Jobs Report Says Wilkinson

It's not like the markets weren't ready for a wild pitch, so to speak, of a jobs report. The Wall Street Journal went as far as calling it "the least important jobs report in five years" given the diffused post-election environment and the fact the Fed meets next week.

The reaction in financial markets so far has been modest, as investors are seeing right through the headline number and seized upon the fact that the labor force fell by 350,000 last month, while the participation rate also dipped to 63.6%.

"You saw the unemployment go down this month sharply, but probably for the wrong reason," North says, adding that the report is positive but still "way short of what we need to have for good growth."

With the jobs report now behind us, we begin to get set for the Fed's last meeting of the year, next Tuesday and Wednesday, with comparably low expectations, as economists like North, and presumably those that sit alongside Ben Bernanke at the central bank too, did not see this report as a game changer in any way.

What that means is that we can, as they say in the TV business, return to our regularly scheduled programming which means our singular focus on fiscal cliff resolutions can resume.

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Bombing wounds Afghan intelligence chief

KABUL, Afghanistan (AP) — A Taliban suicide bomber posing as a messenger of peace blew himself up near Afghanistan's newly appointed intelligence chief on Thursday, seriously wounding him, officials said.

The Taliban claimed responsibility for the attack on Asadullah Khalid — the fifth such assassination attempt on his life in as many years, the officials added.

"Thank God, he's OK. It's positive," President Hamid Karzai told reporters outside a medical facility run by the National Directorate of Security where Khalid had surgery. "Now there is hope that he'll get healthy again."

The attempted assassination of the nation's top intelligence official came just as the president described the U.S.-led military coalition as partly responsible for instability in Afghanistan.

"Part of the insecurity is coming to us from the structures that NATO and America created in Afghanistan," Karzai told NBC News in an interview broadcast on Thursday. Terrorism will not be defeated "by attacking Afghan villages and Afghan homes," he said.

Shafiqullah Tahiri, a spokesman for the intelligence service, said that the bomber had used the false peace offer as a ruse to close in on the intelligence chief.

The bombing was reminiscent of the September 2011 killing of former Afghan President Burhanuddin Rabbani, who at the time was the leader of a government-appointed peace council seeking reconciliation with militants. In that attack, an insurgent posing as a Taliban peace envoy detonated a bomb that was hidden in his turban as he met Rabbani at his home in Kabul.

Khalid, in his early 40s, suffered serious injuries to his stomach and lower part of the body when the bomb exploded at his guest house as he was receiving a visitor, a senior Afghan official said, speaking on condition of anonymity because he was not authorized to disclose the information. The intelligence chief had used the house for private meetings he preferred not to hold at his agency's official compound, he added.

The bomber passed through at least one check without the explosives being discovered, the official said. The house was not as heavily guarded as the agency's compound, he added.

Shuja Momuzai, 31, who manages a house a couple doors from Khalid's guest house, said he heard an explosion shortly after 3 p.m., after which he saw Khalid being evacuated.

He said that people in the neighborhood knew Khalid used the house, which had at least two perimeter walls.

Karzai said Khalid would be sent elsewhere for further treatment, implying that he could be transferred outside the country.

Taliban spokesman Zabiullah Mujahid said the intelligence chief was the target of a suicide bombing carried out by an attacker named Hafez Mohammad.

Khalid, who was appointed to head the intelligence service in September, comes from the Pashtun ethnic group and has served as governor of restive Ghazni province in the east and Kandahar province in the south. He is also Afghanistan's former minister of tribal and border affairs.

He says he first eluded an assassin in 2006, and bombers had targeted him 3 times since, before Thursday's attack.

Karzai, in his interview, also said that he was not convinced that al-Qaida "has a presence in Afghanistan."

While weakened in recent years, the group, whose 9/11 attacks drew America into its longest war, appears to have preserved at least limited means of regenerating inside Afghanistan as U.S. influence in the country wanes. For years the main target of U.S.-led forces has been the Taliban, who ruled Afghanistan and protected al-Qaida before the U.S. invasion 11 years ago. But the strategic goal is to prevent al-Qaida from again finding sanctuary in Afghanistan from which to launch attacks on the U.S.

"I don't even know if al-Qaida exists as an organization as it is being spoken about," Karzai said. "So all we know is that we have insecurity."

In other developments, five children were killed and two others were wounded Thursday in Sangin district of Helmand province, said provincial police spokesman Fareed Ahmad. He said the children had been collecting scrap items they hoped to sell and apparently picked up a mine. The mine exploded near shops in the district, he said.

Also on Thursday, Afghan and Tajik counter-narcotics officials said a dozen suspected drug traffickers were arrested during a joint operation along the border between the two countries.

Baz Mohammad Ahmadi, Afghanistan's deputy interior minister for counter-narcotics, said Thursday that alleged ringleaders of four drug-trafficking operations in Badakhshan in northeastern Afghanistan and nearby areas of Tajikistan were among those arrested.

Weapons and 420 kilograms (926 pounds) of hashish, opium and heroin also were confiscated, he said. Two of the alleged traffickers were wounded in gun battles during the five-day operation.

U.S. drug officials and the NATO-led coalition lent technical support for the operation that began Dec. 1.

Ahmadi said the Afghan government plans to burn 200 metric tons (220 short tons) of drugs seized in operations this year.

Insurgents conduct targeted attacks to undermine public confidence in the government and show they remain a resilient force, despite being outmanned by Afghan and U.S.-led coalition forces.

___

Associated Press Deb Riechmann, Heidi Vogt and Patrick Quinn contributed to this report.

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Individuality takes center stage at Grammys

Fun. helped break up the sound of dance and electronic music on Top 40 radio with its edgy pop-rock grooves. Frank Ocean made a bold statement in R&B — with an announcement about his sexuality and with his critically revered, multi-genre album, "channel ORANGE." And Mumford & Sons continued to bring its folk-rock swag and style to the Billboard charts with its sophomore album.

They all were rewarded Wednesday when The Recording Academy announced the nominees for the 2013 Grammy Awards.

Those acts, who scored the most nominations with six each, were joined by typical Grammy contenders like Jay-Z and Kanye West, who also got six nominations. The Black Keys' drummer, Dan Auerbach, is also up for six awards, thanks to his nomination for producer of the year. His band earned five nods, along with R&B singer Miguel and jazz pianist Chick Corea.

"It feels like alternative music is back," said fun. guitarist Jack Antonoff. His band's gold-selling "Some Nights" is up for album of the year, competing with Black Keys' "El Camino," Mumford & Sons' "Babel," Jack White's "Blunderbuss" and "channel ORANGE," the major label debut from Ocean.

Fun. is nominated in all of the major categories, including best new artist, and record and song of the year for its breakthrough anthem "We Are Young."

Ocean, whose mother attended the nominations special, scored nods in three of the top four categories. His song "Thinkin Bout You" — which he originally wrote for another singer — will compete for record of the year with Black Keys' "Lonely Boy" and four No. 1 hits: Taylor Swift's "We Are Never Ever Getting Back Together," ''Somebody I Used to Know" by Gotye and Kimbra, Kelly Clarkson's "Stronger (What Doesn't Kill You)" and "We Are Young" by fun.

Song of the year, too, features some No. 1 hits, including fun. and Clarkson's jams, as well as Carly Rae Jepsen's viral smash "Call Me Maybe." But then there's Ed Sheeran's "The A Team," a slow groove about a homeless prostitute, and Miguel's "Adorn," the R&B singer-songwriter's crossover hit.

"It's like one of those songs that wrote itself and I was the vessel," the 26-year-old said in an phone interview from New York City late Wednesday, where he performed with Trey Songz and Elle Varner.

While Miguel's excited to compete for song of the year, he's more thrilled about his sophomore album's nomination for best urban contemporary album, a new category that recognizes R&B albums with edge and multiple sounds.

"That's a huge complement to say that your entire body of work was the best of the year," he said of "Kaleidoscope Dream." ''That's the one that means the most to me. I'm really hoping maybe, just maybe."

Miguel, along with Gotye, Alabama Shakes and the Lumineers, is part of the pack of nominees who have showcased individuality and have marched to the beat of their own drum in today's music industry.

Though nominated albums by The Black Keys and Mumford & Sons are platinum-sellers, their songs are not regularly heard on Top 40 radio. Electronic and dance music, which has dominated radio airplay for a few years, were left out of the top awards this year. Also, One Direction — the boy band that released two top-selling albums this years and sold-out many arenas — was snubbed for best new artist.

Lionel Richie has one of the year's top-selling albums with his country collaboration collection, "Tuskegee," but he didn't earn any nominations. And Nicki Minaj, who released a gold-selling album this year and had a hit with "Starships," wasn't nominated for a single award.

Jay-Z and West dominated the rap categories, a familiar refrain at the Grammys. Nas scored four nominations, including best rap album for "Life Is Good." Jeff Bhasker, the producer behind fun.'s breakthrough album, also scored four nods.

Swift, who released her latest album, "Red," after the Grammy eligibility date, still scored three nominations, including two for "Safe & Sound" with The Civil Wars. Country acts were mainly left out of the major categories this year, though the genre usually has success at the Grammys. Aside from Swift's pop song competing for record of the year, there is 21-year-old Hunter Hayes, who is up for best new artist against fun., Ocean, Alabama Shakes and the Lumineers.

"I'm so proud to be, as you say, representing country music in the new artist category," said Hayes, who is also nominated for best country album and country solo performance. "I don't even feel worthy of saying that, but it's so cool for me to be able to say that."

Swift hosted the CBS special with LL Cool J and it featured performances by The Who and Maroon 5, who received multiple nominations.

The five-year-old nominations show spent its first year outside Los Angeles, making its debut in Nashville, Tenn., at the Bridgestone Arena. It marked the largest venue the show has been held in.

The 55th annual Grammy Awards take place Feb. 10 in Los Angeles.

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Online:

http://www.grammys.com

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AP Music Writer Chris Talbott and AP Writer Caitlin R. King in Nashville contributed to this report.

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Tanks surround Egypt's presidential palace

CAIRO (Reuters) - Egypt's Republican Guard restored order around the presidential palace on Thursday after fierce overnight clashes killed seven people, but passions ran high in a struggle over the country's future.

The Islamist president, Mohamed Mursi, criticised by his opponents for his silence in the last few days, was due to address the nation later in the day, state television said.

Hundreds of his supporters who had camped out near the palace overnight withdrew before a mid-afternoon deadline set by the Republican Guard. Dozens of Mursi's foes remained, but were kept away by a barbed wire barricade guarded by tanks.

The military played a big role in removing President Hosni Mubarak during last year's popular revolt, taking over to manage a transitional period, but had stayed out of the latest crisis.

Mursi's Islamist partisans fought opposition protesters well into the early hours during duelling demonstrations over the president's decree on November 22 to expand his powers to help him push through a mostly Islamist-drafted constitution.

Officials said seven people had been killed and 350 wounded in the violence, for which each side blamed the other. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

The street clashes reflected a deep political divide in the most populous Arab nation, where contrasting visions of Islamists and their liberal rivals have complicated a struggle to embed democracy after Mubarak's 30-year autocracy.

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, has urged dialogue.

The commander of the Republican Guard said deployment of tanks and troop carriers around the presidential palace was intended to separate the adversaries, not to repress them.

"The armed forces, and at the forefront of them the Republican Guard, will not be used as a tool to oppress the demonstrators," General Mohamed Zaki told the state news agency.

Hussein Abdel Ghani, spokesman of the opposition National Salvation Front, said more protests were planned, but not necessarily at the palace in Cairo's Heliopolis district.

"Our youth are leading us today and we decided to agree to whatever they want to do," he told Reuters.

UNITY APPEAL

Egypt plunged into renewed turmoil after Mursi issued his November 22 decree and an Islamist-dominated assembly hastily approved a new constitution to go to a referendum on December 15.

The Supreme Guide of the Brotherhood, to which Mursi belonged before he was narrowly elected president in June, appealed for unity. Divisions among Egyptians "only serve the nation's enemies", Mohamed Badie said in a statement.

Rival factions used rocks, petrol bombs and guns in the clashes around the presidential palace.

"We came here to support President Mursi and his decisions. He is the elected president of Egypt," said demonstrator Emad Abou Salem, 40. "He has legitimacy and nobody else does."

Opposition protester Ehab Nasser el-Din, 21, his head bandaged after being hit by a rock the day before, decried the Muslim Brotherhood's "grip on the country", which he said would only tighten if the new constitution is passed.

Another protester, Ahmed Abdel-Hakim, 23, accused the Brotherhood of "igniting the country in the name of religion".

Mursi's opponents accuse him of seeking to create a new "dictatorship". The president says his actions were necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.

Mursi has shown no sign of buckling under pressure from protesters, confident that the Islamists, who have dominated both elections since Mubarak was overthrown, can win the referendum and the parliamentary election to follow.

Mahmoud Hussein, the Brotherhood's secretary-general, said holding the plebiscite was the only way out of the crisis, dismissing the opposition as "remnants of the (Mubarak) regime, thugs and people working for foreign agendas".

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

The Egyptian pound sank on Thursday to its lowest level in eight years, after previously firming on hopes that a $4.8 billion IMF loan would stabilise the economy. The Egyptian stock market fell 4.4 percent after it opened.

Foreign exchange reserves fell by nearly $450 million to $15 billion in November, indicating that the Central Bank was still spending heavily to bolster the pound. The reserves stood at about $36 billion before the anti-Mubarak uprising.

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