Algerian army stages "final assault" on gas plant

ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army on Saturday carried out a final assault on al Qaeda-linked gunmen holed up in a desert gas plant, killing 11 of the Islamists after they took the lives of seven more foreign hostages, a local source and the state news agency said.

"It is over now, the assault is over, and the military are inside the plant clearing it of mines," a local source familiar with the operation told Reuters.

The state oil and gas company, Sonatrach, said the militants who attacked the plant on Wednesday and took a large number of hostages had booby-trapped the complex with explosives.

The exact death toll among the gunmen and the foreign and Algerian workers at the plant near the town of In Amenas close to the Libyan border remained unclear.

Earlier on Saturday, Algerian special forces found 15 burned bodies at the plant. Efforts were under way to identify the bodies, the source told Reuters, and it was not clear how they had died.

Sixteen foreign hostages were freed on Saturday, a source close to the crisis said. They included two Americans, two Germans and one Portuguese. Britain said fewer than 10 of its nationals at the plant were unaccounted for.

The attack on the plant swiftly turned into one of the biggest international hostage crises in decades, pushing Saharan militancy to the top of the global agenda.

INTERNATIONAL CRISIS

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

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

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

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

Before the final assault, different sources had put the number of hostages killed at between 12 and 30, with many foreigners still unaccounted for, among them Norwegians, Japanese, Britons and Americans.

The figure of 30 came from an Algerian security source, who said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.

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

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

France's defense minister, Jean-Yves Le Drian, declined to criticize the Algerian response to the crisis, however.

"The Algerian authorities are on their own soil and responding in the fashion they can. The overriding mission is to tackle the terrorists," he told France 3 television.

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

VETERAN JIHADIST

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

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

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

The field commander of the Islamist group that attacked the plant is a veteran fighter from Niger called Abdul Rahman al-Nigeri, Mauritanian news agencies reported.

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

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

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Sonya Hepinstall and Mark Trevelyan)

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Myanmar Spitfire hunter still optimistic

YANGON: An archaeologist involved in a search for dozens of rare Spitfire planes said to have been buried in Myanmar played down doubts on Friday about the existence of the rumoured trove.

The BBC reported that the British-led team believes that no planes are buried at the locations where they have been hunting in the northern city of Myitkyina and Yangon airport, a wartime airfield, in the Mingaladon district.

The team's leader had previously said he believed that dozens of the iconic single-seat aircraft were buried in 1945 by Britain, the former colonial power in what was then Burma.

But local geophysicist Soe Thein, who has been involved in the search for more than a decade, said he remained optimistic, pointing to the recent discovery of a crate buried in the ground at the site in Myitkyina.

"I am sure what we found in Myitkyina is a Spitfire. We are still trying to search in Mingaladon," he told AFP.

The team said last week that it was unable to determine the contents of the crate by inserting a camera because of murky water obscuring the visibility.

A local businessman involved in the project, Htoo Htoo Zaw, also distanced himself from the report on the BBC website, which quoted project leader David Cundall as saying that the team might be looking in the wrong place.

"We are still doing surveys and haven't started the digging yet. We can't say anything yet," Htoo Htoo Zaw said.

Issues such as dealing with modern-day obstacles such as underground electricity cables have delayed the actual excavation.

Confusion about the project deepened after Cundall - a farmer and aircraft enthusiast who has spent 17 years chasing the rumoured Spitfires - cancelled a press conference that had been planned for Friday.

Cundall could not immediately be contacted for comment. A spokesman for Wargaming.net, the video game company providing financial backing for the project, did not immediately respond to a request for clarification.

There are thought to be fewer than 50 airworthy Spitfires left in the world and the prospect of finding a new haul has excited military history and aviation enthusiasts around the world.

- AFP/de

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Journalists should adhere to principles of truth: Pranab

KOLKATA: President Pranab Mukherjee on Friday said the journalists should adhere to the principles of truth, credibility and make efforts to find out the truth.

"Certain fundamentals have to be kept in mind and that is truth, credibility, placing the facts and making efforts to find out the truth," Mukherjee said at a function organised by the Kolkata Press Club and Indian Journalists' Association here.

Eulogizing the first president of IJA Mrinal Kanti Basu, the President said, "He truly believed that comments are free, but facts are sacrosanct and many of the doyens of journalism have strictly adhered to this principle that "yes, I am free to give my views, but facts are to be reported as they are".

"Of course, there has been revolutionary change in information technology. That's why persons belonging to the older generation who developed the habit of reading and sometimes reading in details are not accustomed to give what you describe as byte because to give that short cryptic comment, it takes some time to acquire the mastery over the art of conceptualizing our views and expressions in the most appropriate words," he said.

In an expansive mood, Mukherjee said, "I had very frequent interactions with the friends in media. It is not always correct that I was polite to them or cooperative towards them."

"More than often, I became rude to them. Being an old man perhaps, they accommodated my rudeness," the President, who has been a politician for decades and held several key portfolios in different ministries, said.

"Whatever I received from people I came in contact with, it was more that what I have given them. Journalists are no exception," Mukherjee said.

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Flu remains widespread in US; eases in some areas

Health officials say nine more deaths of children from the flu have been reported, bringing the total this flu season to 29.

In a typical season, about 100 children die of the flu, so it is not known whether this year will be better or worse than usual.

The Centers for Disease Control and Prevention says half of confirmed flu cases so far are in people 65 and older.

This year's season is earlier than normal and the dominant flu strain is one that tends to make people sicker. The flu is widespread in all states but Tennessee and Hawaii and is starting to ease in some areas.

Health officials say it's not too late to get a flu shot to help protect against the flu.

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Manti Te'o's Fake Girlfriend May Have Duped Others

Notre Dame star linebacker Manti Te'o's fake girlfriend "Lennay Kekua" may have hoaxed other unsuspecting suitors.

"Catfish" movie director and actor Ariel Schulman told "Good Morning America" today that he believes there may have been "a few other people duped by the fake Lennay character."

Schulman and his brother Nev Schulman have been looking into the elaborate scam and claim to be corresponding with various players involved. They have come to believe that there were "a lot of other people that she was corresponding with before and maybe even during her relationship [with Te'o]."

Nev Schulman was the subject of the 2010 movie "Catfish," which spawned the TV series, because he himself was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.

As questions mount about Te'o's possible role in the complex scam, the number one question is whether Te'o was unknowingly ensnared, as he says, or whether he was complicit in the scam.

"I stand by the guy. My heart goes out to him," Ariel Schulman said. His brother has reached out to Te'o, but has not heard back.

"He had his heart broken," Schulman said. "He was grieving for someone, whether she existed or not. Those were real feelings."

Streeter Lecka/Getty Images

Manti Te'o Hoax: Was He Duped or Did He Know? Watch Video

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Click here for a who's who in the Manti Te'o case

Te'o has kept a low-profile since the news of the scandal broke. He released a statement calling the situation "incredibly embarrassing" and maintaining that he was a victim of the hoax.

He was captured briefly by news cameras on Thursday at a Florida training facility, but has not spoken publicly.

As for the woman whose photo was used as the face of Lennay Kekua, "Inside Edition" has identified her as Diane O'Meara who is very much alive. The show caught up with her on Thursday, but she declined to comment.

ABC News' legal analyst Dan Abrams said that O'Meara may be the one person in the scandal with the power to sue since her likeness was taken and used without her permission.

As for Te'o, even if he knew about the deception, it appears that he did not do anything illegal.

"He's allowed to lie to the public. He's allowed to lie to the media. He's not allowed to lie to the authorities," Abrams said on "Good Morning America."

Questions also remain about the timeline of events and when Te'o discovered that the "love of his life," as he called her, was nothing more than a fake Internet persona.

According to Notre Dame's timeline of events, Te'o learned his girlfriend didn't exist on Dec. 6.

But in a Dec. 8 interview with South Bend, Ind., TV station WSBT, Te'o said, "I really got hit with cancer. I lost both my grandparents an my girlfriend to cancer." And on Dec. 11, he talked about his girlfriend in a newspaper interview.

Te'o alerted Notre Dame on Dec. 26 about the scam, the university said.

Click here for more scandalous public confessions.

Skeptics have also cited comments by Te'o's father Brian Te'o who told a newspaper how Kekua used to visit his son in Hawaii.

Notre Dame athletic director Jack Swarbrick said the university launched their own investigation.

"Our investigators, through their work, were able to discover online chatter between the perpetrators," Swarbrick said at a Wednesday news conference. "That was sort of the ultimate proof."

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Sixty foreigners still caught in Sahara hostage crisis

ALGIERS (Reuters) - More than 20 foreigners were still being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants, who threatened to attack other energy installations.

Thirty hostages, including at least seven Westerners, were killed during Thursday's assault, along with at least 18 of their captors, said an Algerian security source.

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

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

A local Algerian source said 100 of 132 foreign hostages had been freed from the facility. The fate of the other 32 was unclear as the situation was changing rapidly.

Earlier he said 60 were still missing with some believed still held hostage, but it was unclear how many, and how many might be in hiding elsewhere in the sprawling compound.

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

Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30.

France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.

Some countries have been reluctant to give details of the numbers of their missing nationals to avoid disclosing information that may be useful to their captors.

As Western leaders clamored for news, several expressed anger they had not been consulted by the Algerian government about its decision to storm the facility.

The sprawling facility housed hundreds of workers. Algeria's state news agency said the army had rescued 650 hostages in total, 573 of whom were Algerians.

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

MULTINATIONAL INSURGENCY

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

An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops.

A French hostage employed by a French catering company said Algerian military forces had found some British hostages hiding and were combing the sprawling In Amenas site for others when he was escorted away by the military.

"I hid in my room for nearly 40 hours, under the bed. I put boards up pretty much all round," Alexandre Berceaux told Europe 1 raid. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

"When Algerian solders ... came for me, I didn't even know it was over. They were with some of my colleagues, otherwise I'd never have opened the door."

Western governments are trying to determine the degree to which the hostage taking was part of an international conspiracy and was linked, as the captors claimed, to the week-old French military intervention in neighboring Mali.

The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.

Algeria state news agency APS said the group had planned to take the hostages to Mali.

The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.

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

MALI WOES

The crisis posed a serious dilemma for former colonial power Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in Mali, another former colony.

The desert fighters have proved to be better trained and equipped than France had anticipated, diplomats told Reuters at the United Nations, which said 400,000 people could flee Mali to neighboring countries in the coming months.

In Algeria, the kidnappers warned locals to stay away from foreign companies' oil and gas installations, threatening more attacks, Mauritania's news agency ANI said, citing a spokesman for the group.

Algerian workers form the backbone of an oil and gas industry that has attracted international firms in recent years partly because of military-style security. The kidnapping, storming and further threat cast a deep shadow over its future.

Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm, said on Friday.

The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s and one of a host of Saharan Islamists, flush with arms and fighters from the 2011 civil war in Libya. He appears not to have been present.

Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who travelled from Libya, and the lesser known "Movement of the Islamic Youth in the South".

"They were carrying heavy weapons including rifles used by the Libyan army during (Muammar) Gadaffi's rule," he said. "They also had rocket-propelled grenades and machineguns."

Algeria's government is implacably at odds with Islamist guerrillas who remain at large in the south, years after the civil war through the 1990s in which some 200,000 people died.

Britain's Cameron, who warned people to prepare for bad news and who cancelled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.

U.S. officials had no clear information on the fate of Americans, though a U.S. military drone had flown over the area. Washington, like its European allies, has endorsed France's move to protect the Malian capital by mounting air strikes last week and now sending 1,400 ground troops to attack Islamist rebels.

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

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

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Football: Rodgers slams Suarez over diving admission

LONDON: Liverpool manager Brendan Rodgers on Thursday said that his controversial striker Luis Suarez could face punishment from the club after admitting that he dived to try to win a penalty in a league game with Stoke City.

In an interview with Fox Sports Argentina, Suarez admitted "falling" during October's 0-0 draw between the clubs at Anfield, prompting Rodgers, who had defended him from criticism at the time, to hit out.

"I think it is wrong. It is unacceptable. I have spoken to Luis and it will be dealt with internally," said Rodgers. "(Diving) is not something we advocate. Our ethics are correct."

Rodgers spoke to Suarez on Thursday and said he had been "totally understanding on where I am coming from as manager of the club.

"What was said was wrong. He takes that and we move on," he added.

Suarez hit the headlines for a theatrical fall in the Stoke game after he went to ground under a challenge from Marc Wilson in an unsuccessful attempt to win a second-half penalty.

FIFA vice-president Jim Boyce was moved to describe Suarez's tumble as "cheating", adding that the tendency for players to easily fall to the ground was a "cancer" in the game.

Suarez has been accused of diving at regular intervals during his time in England and he admitted in the interview that he had gone down on purpose.

"I was criticised for trying to win a penalty by falling in a match against Stoke," said the Uruguay international. "It's true I fell because we were drawing against Stoke at home and we needed to do something.

"But afterwards, the coaches of Stoke, Everton, all of them, came forward. I came to realise that the name of Suarez was a (newspaper) seller."

Suarez sparked controversy again earlier this month when he handled the ball prior to scoring Liverpool's winning goal in their 2-1 victory at non-league Mansfield Town in the FA Cup.

"The other day, a ball hit my hand without me meaning it to," he said. "I kissed my wrist (in celebration) and everyone started rounding on me."

Suarez also claimed that foreign players are treated differently to home-grown players in the Premier League.

"It's difficult," he said. "It's what Carlitos (Tevez) said, it's what Kun (Sergio Aguero) said: foreigners, and especially the South Americans, are treated differently to local players."

Suarez added that his run-in with Manchester United defender Patrice Evra, which saw him hit with a 40,000 fine pounds and an eight-match ban for racial abuse, was long forgotten.

"When people come and insult me, saying I'm South American, I don't start crying. It's something that stays on the pitch, part of football. My conscience is clear," he said, before claiming that Manchester United control the British press.

"They've got a lot of power and they'll always help them."

- AFP/fa

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Large study confirms flu vaccine safe in pregnancy

NEW YORK (AP) — A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

The study was released by the New England Journal of Medicine on Wednesday as the United States and Europe suffer through an early and intense flu season. A U.S. obstetricians group this week reminded members that it's not too late for their pregnant patients to get vaccinated.

The new study was led by the Norwegian Institute of Public Health. It tracked pregnancies in Norway in 2009 and 2010 during an international epidemic of a new swine flu strain.

Before 2009, pregnant women in Norway were not routinely advised to get flu shots. But during the pandemic, vaccinations against the new strain were recommended for those in their second or third trimester.

The study focused on more than 113,000 pregnancies. Of those, 492 ended in the death of the fetus. The researchers calculated that the risk of fetal death was nearly twice as high for women who weren't vaccinated as it was in vaccinated mothers.

U.S. flu vaccination rates for pregnant women grew in the wake of the 2009 swine flu pandemic, from less than 15 percent to about 50 percent. But health officials say those rates need to be higher to protect newborns as well. Infants can't be vaccinated until 6 months, but studies have shown they pick up some protection if their mothers got the annual shot, experts say.

Because some drugs and vaccines can be harmful to a fetus, there is a long-standing concern about giving any medicine to a pregnant woman, experts acknowledged. But this study should ease any worries about the flu shot, said Dr. Denise Jamieson of the Centers for Disease Control and Prevention.

"The vaccine is safe," she said.

___

Online:

Medical journal: http://www.nejm.org

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Manti Te'o Hoax Exposes 'Catfish' Internet Scams

Notre Dame Athletic Director Jack Swarbrick cited the documentary "Catfish" in trying to explain how he said
star linebacker Manti Te'o became the victim of an elaborate hoax that duped him into believing that his online girlfriend died during the 2012 college football season.

"I would refer all of you, if you're not already familiar with it, with both the documentary called 'Catfish,' the MTV show which is a derivative of that documentary, and the sort of associated things you'll find online and otherwise about catfish, or catfishing," Swarbrick told reporters Wednesday.

The 2010 blockbuster film stars Nev Schulman, who was the real-life victim of a "catfish" scam. Schulman wanted to make the documentary to show how he was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.

Schulman made the documentary as he was falling for someone named "Megan," a gorgeous 20-something from Michigan. Their online relationship blossomed until Schulman confronted "Megan."

"Megan" turned out to be a middle-aged mom of two named Angela Wesselman, who later said she had been diagnosed with schizophrenia.

Mike Ehrmann/Getty Images

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

'Catfish' Star Nev Schulman's Red Flags for Spotting Online Fakers Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Inside 'Catfish': A Tale of Twisted Cyber-Romance

"It was different. It was something new. It was a little mysterious," Schulman told ABC News in an earlier interview, describing his reaction before he discovered Megan's true identity.

Now, a much wiser Schulman is helping others catch the "catfish" in his new hit series on MTV inspired by the real-life documentary, "Catfish: The TV Show."

'Catfish' Stars Nev Schulman's Advice for Online Dating

In one episode, Schulman meets Sunny, who says she has been dating a medical student online named "Jameson" for eight months.

"He's going to be an anesthesiologist. He does online classes," Sunny says of "Jameson" in the episode.

Schulman convinces Sunny to take a road trip to meet "Jameson" face to face and and Sunny later finds out "Jameson" was really a woman who was pretending to be a man online for at least four years.

"I mean who does that," Sunny said in the episode.

For Te'o, 21, the scam was allegedly worse. The Hawaiian said during the season that his girlfriend, Lennay Kekua, died of leukemia in September on the same day Te'o's grandmother died, triggering an outpouring of support for Te'o at Notre Dame and in the media.

"If the person you're talking to has a series of family incidents, this is something to watch out for," Schulman said.

As more become connected through various social media outlets, Schulman says these "catfish" hoaxes will continue.

"So long as we're not looking people in the eye face-to-face, there's always going be room, a lot of room for deception," he said.

WATCH: Deadspin Writer Who Uncovered Hoax Explains the Story

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Algerian forces launch operation to break desert siege

ALGIERS (Reuters) - Twenty-five foreign hostages escaped and six were killed on Thursday when Algerian forces launched an operation to free them at a remote desert gas plant, Algerian sources said, as one of the biggest international hostage crises in decades unfolded.

The standoff began when gunmen calling themselves the Battalion of Blood stormed the gas facility on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.

The raid increased fears that jihadist militants could launch further attacks in Algeria, a vast desert country with large oil and gas reserves that is only just recovering from a protracted conflict with Islamist rebels during the 1990s which cost an estimated 200,000 lives.

Fast-moving details of the military operation to free the hostages from the gas plant were difficult to confirm. Algeria's official APS news agency said about half the foreign hostages had been freed.

A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen.

Mauritania's ANI news agency, which has been in constant contact with the kidnappers, said seven hostages were still being held: two Americans, three Belgians, one Japanese and one British citizen.

It quoted one of the kidnappers as saying that Algerian ground forces were trying to fight their way into the complex.

ANI and Qatar-based Al Jazeera reported that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle. Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive.

Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way but did not provide details.

As many as 600 Algerian workers at the site managed to flee, the official Algerian news agency said.

RAISING THE STAKES

The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against rebels after air strikes began last week.

Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought Soviet forces in Afghanistan in the 1980s and had set up his own group in the Sahara after falling out with other local al Qaeda leaders.

A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.

The hostage takers earlier allowed some prisoners to speak to the media, apparently to put pressure on Algerian forces not to storm the compound. An unidentified hostage who spoke to France 24 television said prisoners were forced to wear explosive belts and captors had threatened to blow up the plant.

A local source told Reuters the hostage takers had blown up a petrol filling station at the plant.

Two hostages, identified as British and Irish, spoke to Al Jazeera television and called on the Algerian army to withdraw from the area to avoid casualties.

"We are receiving care and good treatment from the kidnappers. The (Algerian) army did not withdraw and they are firing at the camp," the British man said. "There are around 150 Algerian hostages. We say to everybody that negotiations is a sign of strength and will spare many any loss of life."

Ireland said later that the Irish hostage was among those freed.

NUMBERS UNCONFIRMED

The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.

Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.

The militants said seven Americans were among their hostages, a figure U.S. officials said they could not confirm.

Norwegian oil company Statoil said nine of its Norwegian staff and three Algerian employees were captive. Britain's BP, which operates the plant with Statoil and Algerian state oil company Sonatrach, said some of its staff were held but would not say how many or their nationalities.

Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Paris has not said whether any hostages were French. Vienna said one hostage was Austrian, Dublin said one was Irish and Bucharest said an unspecified number were Romanian.

Spanish oil company Cepsa said it had begun to evacuate personnel from elsewhere in Algeria, an OPEC member.

Paris said the Algeria attack demonstrated it was right to intervene in Mali: "We have the flagrant proof that this problem goes beyond just the north of Mali," French ambassador to Mali Christian Rouyer told France Inter radio.

President Francois Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its north last year.

However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.

The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.

"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met, and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.

They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.

PRESSING ON

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was underway against the rebels that it first began targeting from the air last week.

"There was combat yesterday, on the ground and in the air. It happened overnight and is under way now," said Le Drian. Residents said a column of about 30 French Sagaie armored vehicles set off on Wednesday toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.

The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.

"The whole world clearly needs to unite and do much more than is presently being done to contain terrorism, with its very negative impact on global peace and security," President Goodluck Jonathan said.

Germany, Britain and the Netherlands have offered transport aircraft to help ferry in African troops. Washington has said it is considering what support it can offer.

Many inhabitants of northern Mali have welcomed the French action, though some also fear being caught in the cross-fire. The Mali rebels who seized Timbuktu and other oasis towns in northern Mali last year imposed Islamic law, including public amputations and beheadings that angered many locals.

A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.

(Reporting by Lamine Chikhi; Writing by Peter Graff; Editing by Giles Elgood)

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