Obama, Congress Fail to Avert Sequester Cuts














President Obama and congressional leaders today failed to reach a breakthrough to avert a sweeping package of automatic spending cuts, setting into motion $85 billion of across-the-board belt-tightening that neither had wanted to see.


Obama met for just over an hour at the White House Friday with Republican leaders House Speaker John Boehner and Senate Minority Leader Mitch McConnell and his Democratic allies, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Vice President Joe Biden.


But the parties emerged from their first face-to-face meeting of the year resigned to see the cuts take hold.


Officials have said the spending reductions immediately take effect on Saturday but that the pain from reduced government services and furloughs of tens of thousands of federal employees would be felt gradually in the weeks ahead.


The sticking point in the debate over the automatic cuts -- known as sequester -- remains whether to include more new tax revenue in a broad deficit reduction plan.


The White House insists there must be higher tax revenue, through closure of tax loopholes and elimination of some deductions. Republicans seek an approach of spending cuts only, with an emphasis on entitlement programs.



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Pope leaves Vatican on historic final day






VATICAN CITY: Pope Benedict XVI left the Vatican on Thursday for the last time as pontiff before he steps down as leader of the world's 1.2 billion Catholics, becoming the first pope to resign in 700 years.

Benedict boarded a white helicopter emblazoned with the Vatican flag for the papal summer residence of Castel Gandolfo near Rome, flying over the Vatican for the last time as pope.

As he took leave of his closest aides in an emotional parting ceremony in the Vatican, staff lined the route of his motorcade and applauded.

The bells of St Peter's Basilica rang out as the helicopter took off from the Vatican's helipad.

"Thank you for your love and support," the pope said in a final tweet sent from his @pontifex Twitter account just before taking off.

"May you always experience the joy that comes from putting Christ at the centre of your lives."

The Twitter account will now be suspended until a new pope is elected in a conclave next month.

The 85-year-old, who has said he can no longer carry on, will then bid one last goodbye to residents of Castel Gandolfo before retiring out of the public eye forever to a life of prayer.

At 1900 GMT, Benedict will no longer be pope.

The Swiss Guards -- a military corps that has protected the papacy since the 15th century and is best known for its brightly-coloured uniforms -- will then leave their posts and return to Rome.

Following tradition, staff in the Vatican will meanwhile apply seals to the doors of the papal apartments and the lift that leads up to them -- to be broken only once a new pope has been elected.

Benedict is only the second pope to resign in the Church's 2,000-year history and in his final hours as pope on Thursday he took the unprecedented step of pledging allegiance to his successor.

"Among you there is also the future pope to whom I promise my unconditional obedience and reverence," the pope said as he bade farewell to cardinals in the Vatican's ornate Clementine Hall.

"Let the Lord reveal the one he has chosen," said the pope, wearing an ermine-lined red stole over his white cassock as cardinals doffed their berettas and lined up to kiss the papal ring.

Benedict will remove the personalised signet ring -- known as the "Fisherman's Ring" -- before he leaves office and it will be destroyed, a tradition to ensure the papal seal is not misused.

"We have experienced, with faith, beautiful moments of radiant light together, as well as times with a few clouds in the sky," Benedict told the cardinals, reprising his remarks to a crowd of 150,000 faithful in St Peter's Square on Wednesday.

"Let us remain united, dear brothers," he said, in the final moments of an eight-year pontificate often overshadowed by infighting at the Vatican and divisions between reformers and traditionalists in the Catholic Church.

The Vatican has said pope will live in Castel Gandolfo for the next two months before taking up permanent residence inside a former convent on a hilltop in the Vatican grounds overlooking Rome.

The German pope stunned the globe when he announced on February 11 his decision to step down, saying he no longer had the "strength of mind and body" required by a fast-changing world.

The news has captured massive media attention, with the Vatican saying that 3,641 journalists from 61 countries will cover the upcoming conclave -- on top of the regular Vatican press corps.

The ex-pontiff will formally carry the new title of "Roman Pontiff Emeritus" or "pope emeritus" for short, although he will still be addressed as "Your Holiness Benedict XVI".

The only other pope who resigned by choice was Celestine V, a humble hermit who stepped down in 1294 after just a few months in office out of disgust with Vatican corruption and intrigue.

Once Benedict takes up residence inside the Vatican, the Church will be in the unprecedented situation of having a pope and his predecessor living within a stone's throw of each other.

Commenting on the new arrangement, Vatican spokesman Federico Lombardi said that Benedict "has no intention of interfering in the positions, decisions or activities of his successor".

Benedict has said he will live "hidden from the world" but the Vatican indicated he could provide "spiritual guidance" to the next pope.

Vatican analysts have suggested his sudden exit could set a precedent for ageing popes in the future, and many ordinary Catholics say a more youthful, pastoral figure could breathe new life into a Church struggling on many levels.

From Catholic reformers calling for women clergy and for an end to priestly celibacy, to growing secularism in the West and ongoing scandals over sexual abuses by paedophile priests going back decades, the next pope will have a tough agenda.

Meanwhile the suspense was building up in Castel Gandolfo -- a tiny mediaeval hilltop town which has hosted visiting popes for centuries and where many locals work at the sprawling papal residence.

"It's a very emotional day," said Patrizia Gasperini, 40, who works in a gift shop next to the imposing wooden doors Swiss Guards will shut at 1900 to signal the end of Benedict's papacy.

Gasperini, who named her eight-year-old daughter Benedetta in his honour, said: "We've been privileged to see a different, more humane side to him over the years, and grown to love him."

-AFP/ac



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Manik Sarkar, son of tailor, to be Tripura chief minister again

AGARTALA: Tripura chief minister Manik Sarkar, set to assume office for a fourth time after leading the Left to a huge electoral win, is the son of a tailor who still washes his own clothes.

An unassuming man, the 64-year-old got down to work no soon than he was declared the winner from Dhanpur constituency. He met CPM leaders and activists at Sonamura, 60km from here.

On Thursday, the Communist Party of India (Marxist) bagged 49 of the 60 seats while its ally Communist Party of India won one seat. The Congress finished with only 10 seats.

It was the best result for the Left since 1978 when the legendary Nripen Chakraborty-led CPM swept 56 seats. This time, Sarkar helped the Left Front increase its 2008 tally by one seat.

Undoubtedly, the "poorest" chief minister in India, Sarkar, according to documents filed with the Election Commission, has Rs.10,800 in cash.

In line with CPM rules, Sarkar gives away his salary to the party, which pays him Rs 5,000 a month.

He is probably India's only chief minister who does not own a home, car or bank balance worth mentioning.

He does not even have a mobile phone and has never used the red beacon on his official car.

Sarkar's wife Panchali Bhattacharjee, 62, who retired as a government employee in 2010, has Rs 22,015 in cash and Rs.24,52,395 as savings. The couple has no children.

She said her husband still washed his clothes every morning.

"My wife's pension can sustain us. My expenses are a small pot of snuff and a cigarette a day," Sarkar said.

After the death of his mother in 2009, Sarkar inherited a small house worth Rs.200,000 in Agartala. He donated it to his younger sister.

Sarkar's father Amulya was a tailor and mother Anjali was an employee of the state health department.

Sarkar joined politics in 1967 and was elected secretary of the CPM's Tripura unit in 1993.

A bachelor of commerce from Calcutta University, Sarkar was first elected to the Tripura assembly in a 1980 bypoll and again in 1983.

He is the second in the northeast to be the chief minister for 15 years or more after Gegong Apang of the Congress who ruled Arunachal Pradesh for 24 years over two periods (1980-99 and 2003-07).

On Thursday, Sarkar defeated his Congress rival Shah Alam by 6,017 votes. In 2008, Sarkar's winning margin was 2,918.

"This is a verdict in favour of development, peace and stability besides good governance," Sarkar told reporters.

According to a CPI-M leader, Left Front leaders will meet here Friday and decide when to form a new government.

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Medicare paid $5.1B for poor nursing home care


SAN FRANCISCO (AP) — Medicare paid billions in taxpayer dollars to nursing homes nationwide that were not meeting basic requirements to look after their residents, government investigators have found.


The report, released Thursday by the Department of Health and Human Services' inspector general, said Medicare paid about $5.1 billion for patients to stay in skilled nursing facilities that failed to meet federal quality of care rules in 2009, in some cases resulting in dangerous and neglectful conditions.


One out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care requirements laid out by the federal agency that administers Medicare, investigators estimated.


By law, nursing homes need to write up care plans specially tailored for each resident, so doctors, nurses, therapists and all other caregivers are on the same page about how to help residents reach the highest possible levels of physical, mental and psychological well-being.


Not only are residents often going without the crucial help they need, but the government could be spending taxpayer money on facilities that could endanger people's health, the report concluded. The findings come as concerns about health care quality and cost are garnering heightened attention as the Obama administration implements the nation's sweeping health care overhaul.


"These findings raise concerns about what Medicare is paying for," the report said.


Investigators estimate that in one out of five stays, patients' health problems weren't addressed in the care plans, falling far short of government directives. For example, one home made no plans to monitor a patient's use of two anti-psychotic drugs and one depression medication, even though the drugs could have serious side effects.


In other cases, residents got therapy they didn't need, which the report said was in the nursing homes' financial interest because they would be reimbursed at a higher rate by Medicare.


In one example, a patient kept getting physical and occupational therapy even though the care plan said all the health goals had been met, the report said.


The Office of Inspector General's report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks, which investigators said gave them a statistically valid sample of Medicare beneficiaries' experiences in skilled nursing facilities.


That sample represents about 1.1 million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available, according to the review.


Overall, the review raises questions about whether the system is allowing homes to get paid for poor quality services that may be harming residents, investigators said, and recommended that the Centers for Medicare & Medicaid Services tie payments to homes' abilities to meet basic care requirements. The report also recommended that the agency strengthen its regulations and ramp up its oversight. The review did not name individual homes, nor did it estimate the number of patients who had been mistreated, but instead looked at the overall number of stays in which problems arose.


In response, the agency agreed that it should consider tying Medicare reimbursements to homes' provision of good care. CMS also said in written comments that it is reviewing its own regulations to improve enforcement at the homes.


"Medicare has made significant changes to the way we pay providers thanks to the health care law, to reward better quality care," Medicare spokesman Brian Cook said in a statement to AP. "We are taking steps to make sure these facilities have the resources to improve the quality of their care, and make sure Medicare is paying for the quality of care that beneficiaries are entitled to."


CMS hires state-level agencies to survey the homes and make sure they are complying with federal law, and can require correction plans, deny payment or end a contract with a home if major deficiencies come to light. The agency also said it would follow up on potential enforcement at the homes featured in the report.


Greg Crist, a Washington-based spokeswoman for the American Health Care Association, which represents the largest share of skilled nursing facilities nationwide, said overall nursing home operators are well regulated and follow federal guidelines but added that he could not fully comment on the report's conclusions without having had the chance to read it.


"Our members begin every treatment with the individual's personal health needs at the forefront. This is a hands-on process, involving doctors and even family members in an effort to enhance the health outcome of the patient," Crist said.


Virginia Fichera, who has relatives in two nursing homes in New York, said she would welcome a greater push for accountability at skilled nursing facilities.


"Once you're in a nursing home, if things don't go right, you're really a prisoner," said Fichera, a retired professor in Sterling, NY. "As a concerned relative, you just want to know the care is good, and if there are problems, why they are happening and when they'll be fixed."


Once residents are ready to go back home or transfer to another facility, federal law also requires that the homes write special plans to make sure patients are safely discharged.


Investigators found the homes didn't always do what was needed to ensure a smooth transition.


In nearly one-third of cases, facilities also did not provide enough information when the patient moved to another setting, the report found.


___


On the Web:


The OIG report: http://1.usa.gov/VaztQm


The Medicare nursing home database: http://www.medicare.gov/NursingHomeCompare/search.aspx?bhcp=1&AspxAutoDetectCookieSupport=1


___


Follow Garance Burke on Twitter at —http://twitter.com/garanceburke.


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Benedict Departs Vatican for the Last Time as Pope












Pope Benedict XVI bade his final farewell to the faithful today, lifting off from the Vatican in a white helicopter as the first pope to resign in six centuries.


Just before 5 p.m. local time, Benedict, 85, walked out of the Vatican for the last time as pope, waving to a cheering crowd in the Courtyard of San Damaso as he entered a black Mercedes for the short drive to a nearby heliport.


In a tweet sent from Benedict XVI ?@Pontifex as his motorcade rolled to the heliport, Benedict said, "Thank you for your love and support. May you always experience the joy that comes from putting Christ at the centre of your lives."


READ MORE: Pope Benedict XVI Delivers Farewell Address


With church bells ringing across Rome, he then embarked on the 15-minute flight to Castel Gandolfo, the papal summer residence just south of the city and his home for the coming months when he'll be recognized by the church as His Holiness Benedict XVI, Pope Emeritus.


When Benedict landed in the gardens at Castel Gandolfo, he was greeted by a group of dignitaries, including the governor of the Vatican City state Giovanni Bertello, two bishops, the director of the pontifical villas, and the mayor and parish priest. Off the helicopter and back into a car, Benedict headed to the palace.










In the plaza at Castel Gandolfo, a crowd of supporters, many waving flags or banners, some peering out of windows, gathered to welcome Benedict. When Benedict finally appeared on the balcony, the crowd erupted in applause.


"Thank you for your friendship, your affection," Benedict told them.


Benedict said he was "just a pilgrim starting the last lap of his earthly journey."


After his brief address to the crowd, Benedict waved one last time and walked back into the palace as the sun set around the square.


9 Men Who Could Replace Pope Benedict XVI


In his final remarks earlier in the day to colleagues in the Roman Catholic Church, Benedict had promised "unconditional reverence and obedience" to his eventual successor.


Benedict, in a morning meeting at the Vatican, urged the cardinals to act "like an orchestra" to find "harmony" moving forward.


Benedict spent a quiet final day as pope, bidding farewell to his colleagues and moving on to a secluded life of prayer, far from the grueling demands of the papacy and the scandals that have recently plagued the church.


His first order of business was a morning meeting with the cardinals in the Clementine Hall, a room in the Apostolic Palace. Despite the historical nature of Benedict's resignation, not all cardinals attended the event.


Angelo Sodano, the dean of the College of Cardinals, thanked Benedict for his service to the church during the eight years he has spent as pontiff.


Pope Benedict's Last Sunday Prayer Service


For some U.S. Catholics in Rome for the historic occasion, Benedict's departure is bittersweet. Christopher Kerzich, a Chicago resident studying at the Pontifical North American College of Rome, said Wednesday he is sad to see Benedict leave, but excited to see what comes next.


"Many Catholics have come to love this pontiff, this very humble man," Kerzich said. "He is a man who's really fought this and prayed this through and has peace in his heart. I take comfort in that and I think a lot of Catholics should take comfort in that."






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New Singapore ambassadors to Qatar, Saudi Arabia and Switzerland






SINGAPORE: The government has appointed Mr Wong Kwok Pun as Singapore's first resident Ambassador to the State of Qatar, Mr Lawrence Anderson as Singapore's next Ambassador to the Kingdom of Saudi Arabia, and Mr Tee Tua Ba as Singapore's Ambassador to Switzerland (resident in Singapore).

Mr Wong and Mr Anderson will assume their post on 17 March 2013 and 30 March 2013 respectively.

Mr Wong joined the Singapore Foreign Service in 1975. His most recent appointment was as Ambassador to the Kingdom of Saudi Arabia (August 2009 to February 2013), with concurrent accreditation to the Kingdom of Bahrain (January 2010 to February 2013).

Mr Anderson joined the Singapore Foreign Service in 1984. His most recent appointment was as Director/Special Duties in the Ministry of Foreign Affairs and concurrently as Diplomat-in-Residence at the Civil Service College (February 2011 to February 2013).

Mr Tee was Singapore's Non-Resident Ambassador to the United Arab Emirates from April 2008 to December 2012.

- CNA/de



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House panel against considering mercy plea of rape-murder convicts

NEW DELHI: Two months after questioning the rationale behind commuting death sentences of five rape-murder convicts to life imprisonment during then President Pratibha Patil's tenure, a Parliamentary committee has now suggested that the mercy petitions should not be by and large considered for such criminals.

Though the Committee is not in favour of completely knocking out the provision of mercy plea for convicts like those on death row, it wants the government to spell out reasons for grant of pardon.

The Parliament Standing Committee on home affairs - which finalized its report on the Criminal Law (Amendment) Bill, 2012 on Tuesday - also recommended the government to expeditiously dispose off any mercy petition.

Besides, the panel has favoured death sentence for rapists in case the victim dies or is left comatose. It has also agreed to replace the word 'rape' with 'sexual assault' - in sync with the Ordinance on criminal law that was promulgated by President Pranab Mukherjee on February 3 - and suggested including all clauses on capital punishment in the new Bill.

Sources in the home ministry said that the government will withdraw the pending Bill and introduce new Criminal Law (Amendment) Bill, 2013, in Parliament next month. The new Bill, replacing the Ordinance, will incorporate these provisions.

Though the matter concerning mercy pleas was not part of the panel's mandate, it is learnt to have suggested in the wake of strong objections raised by a few members over commutation of death sentence of five rapist-murderers to life imprisonment by President Patil between 2010 and 2012.

Members of the Committee - headed by BJP Rajya Sabha member M Venkaiah Naidu - had on December 27, 2012, referred to four cases involving five rapist-murderers while questioning the government's decision.

The cases include that of Uttar Pradesh's Bantu, who was convicted for raping and killing a five-year-old girl. His mercy petition was disposed off in his favour by President Patil last June. Among others whose death sentences were commuted include Moloi Ram and Santosh Yadav of Madhya Pradesh in February 2011, Satish of UP (May, 2012) and Dharmender Singh (June, 2010).

The last such criminal was hanged in the country was West Bengal's Dhananjoy Chatterjee in August, 2004. He was found guilty of raping and killing a 14-year-old girl in 1990.

Under Article 72 of the Constitution, the President's clemency powers can only be exercised under the government's advice. "The President shall have the power to grant pardons, reprieves, respites or remissions of punishment or to suspend, remit or commute the sentence of any person convicted of any offence," the Article says.

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Vt. lye victim gets new face at Boston hospital


BOSTON (AP) — A Vermont woman whose face was disfigured in a lye attack has received a face transplant.


Doctors at Boston's Brigham and Women's Hospital say 44-year-old Carmen Blandin Tarleton underwent the surgery earlier this month.


A team worked 15 hours to transplant the facial skin, including the neck, nose, lips, facial muscles, arteries and nerves.


The 44-year-old Tarleton, of Thetford, Vt., was attacked by her former husband in 2007. He doused her with industrial strength lye. She suffered chemical burns over 80 percent of her body. The mother of two wrote a book about her experience that describes her recovery.


It was the fifth face transplant at the Boston hospital.


Physicians are planning to discuss the case Wednesday at the hospital.


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Bring on the Cuts: Some Want the Sequester












Mark Lucas wouldn't mind seeing America's defense budget cut by billions.


"There's quite a bit of waste within the military," Lucas, who serves as Iowa state director for the conservative group Americans for Prosperity (AFP), told ABC News. "Being in there for 10 years, I've seen quite a bit of it."


With the budget sequester set to kick in on Friday, the former Army ranger is among a small chorus of conservatives saying bring on the cuts.


Read more: Bernanke on Sequester Cuts: Too Much, Too Soon


Lucas cited duplicative equipment purchases, military-run golf courses and lavish food on larger bases -- unlike the chow he endured at a combat operations post in Afghanistan with about 120 other soldiers.


"These guys would have very good food, and I'm talking almost like a buffet style, shrimp and steak once a week, ice cream, all this stuff," Lucas said. "They had Burger Kings and Pizza Huts and McDonald's. And I said to myself, 'Do we really need this?'"


Lucas and AFP would like to see the sequester modified, with federal agencies granted more authority to target the cuts and avoid the more dire consequences. But the group wants the cuts to happen.


"We're very supportive of the sequestration cuts but would prefer to see more targeted cuts at the same level," said the group's spokesman, Levi Russell.


As President Obama and his Cabinet members are sounding the sequester alarm bells, AFP's willingness shows that not everyone is running for the hills.






Charles Dharapak/Pool/AP Photo











Speaker Boehner Hopes Senate 'Gets Off Their Ass' Watch Video









Sequester Showdown: Automatic Spending Cuts Loom Watch Video









President Obama Details Consequences of Sequester Cuts Watch Video





Read more: 57 Terrible Consequences of the Sequester


Obama traveled to Norfolk, Va., on Tuesday to speak at a shipyard about cuts and layoffs to defense contractors. In his most recent weekly radio address, he told Americans that the Navy has already kept an aircraft carrier home instead of deploying it to the Persian Gulf. And last week, he spoke before national TV cameras at the White House, warning that first responders would be laid off.


Homeland Security Secretary Jane Napolitano has warned that the sequester will "leave critical infrastructure vulnerable to attacks." Transportation Secretary Ray LaHood has warned that air travel will back up after the Federal Aviation Administration furloughs air traffic controllers. And the heads of 18 other federal agencies told Congress that terrible things will happen unless the sequester is pushed off.


Some Republicans have accused the president of scaremongering to gin up popular support for tax hikes. Obama has warned of calamity and demanded compromise in the next breath, and a few Republicans have rejected this as a false choice.


Read more: Boehner Hopes Senate 'Gets Off Their Ass'


"I don't think the president's focused on trying to find a solution to the sequester," House Speaker John Boehner told reporters at a press conference on Tuesday. "For 16 months, the president's been traveling all over the country holding rallies, instead of sitting down with Senate leaders in order to try to forge an agreement over there in order to move the bill."


After Obama spoke to governors at the this week, Republican Louisiana Gov. Bobby Jindal told ABC News' Jonathan Karl outside the White House that the president is exaggerating the sequester's consequences.


"He's trying to scare the American people," Jindal said. "He's trying to distort the impact."






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Iran upbeat on nuclear talks, West wary


ALMATY (Reuters) - Iran gave an upbeat assessment of two days of nuclear talks with world powers that ended on Wednesday, but Western officials said Tehran must start taking concrete steps to ease mounting concerns about its atomic activity.


The first negotiations between Iran and six world powers in eight months ended without a breakthrough in Almaty, but they agreed to meet again at expert level in Istanbul next month and resume political discussions in the Kazakh city on April 5.


Israel, assumed to be the Middle East's only nuclear-armed power, is watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to stop it from acquiring nuclear weapons. Iran denies any such aim.


Iran's foreign minister said he was optimistic an agreement could be reached with the powers - the United States, France, Russia, Britain, Germany and China - on the country's disputed nuclear program.


"Very confident," Ali Akbar Salehi told Reuters when asked on the sidelines of a U.N. conference in Vienna how confident he was of a positive outcome.


The six powers offered at the February 26-27 Almaty meeting to lift some sanctions if Iran scaled back nuclear activity that the West fears could be used to build a bomb.


Tehran, which says its program is entirely peaceful, did not agree to do so and the sides did not appear any closer to a deal to resolve a decade-old dispute that could lead to another war in the Middle East if diplomacy fails.


But Iran still said the talks were a positive step in which the six powers tried to "get closer to our viewpoint".


Western officials had made clear they did not expect major progress in Almaty, aware that the closeness of Iran's presidential election in June is raising political tensions in Tehran and makes significant concessions unlikely.


"I hope the Iranian side is looking positively on the proposal we put forward," said European Union foreign policy chief Catherine Ashton, who led the talks on behalf of the powers. "We have to see what happens next."


The United States did not expect a breakthrough and "the result was clearly in line with those expectations," a senior U.S. official said.


The meeting was "useful" as the two sides agreed dates and venues for follow-up talks but there was a need for progress on confidence building measures, the official added.


UNDERGROUND NUCLEAR SITE


The West's immediate priority is that Iran halts higher-grade uranium enrichment and closes an underground facility, Fordow, where this work is carried out. The material is a relatively short technical step from bomb-grade uranium.


"What we care about at the end is concrete results," the U.S. official said.


One diplomat in Almaty said the Iranians appeared to be suggesting at the negotiations that they were opening new avenues, but that it was not clear if this was really the case.


Both sides said experts would meet for talks in the Turkish city of Istanbul on March 18 and that political negotiators would return to Almaty on April 5-6.


Russian negotiator Sergei Ryabkov confirmed that the powers had offered to ease sanctions on Iran if it stops enriching uranium to 20 percent fissile purity - a short technical step from weapons grade - at the Fordow underground site where it carries out its most controversial uranium enrichment work.


Western officials said the offer of sanctions relief included a resumption of trade in gold and precious metals.


One diplomat said that lifting an embargo on imports of Iranian petrochemical products to Europe, if Iran responded, was also on the table. But a U.S. official said the world powers had not offered to suspend oil or financial sanctions.


The sanctions are hurting Iran's economy and its chief nuclear negotiator, Saeed Jalili, suggested Iran could discuss its production of higher-grade nuclear fuel, although he appeared to rule out shutting Fordow.


In comments in Persian translated into English, Jalili told a news conference Fordow was under the supervision of the U.N. nuclear watchdog and there was no justification for closing it.


MOOD "MORE OPTIMISTIC"


Asked about the production of 20-percent enriched fuel, he reiterated Iran's position that it needed this for a research reactor and had a right to produce it.


Iran says its enrichment program is aimed solely at fuelling nuclear power plants so that it can export more oil, and that Israel's assumed nuclear arsenal is the main threat to peace in the region.


But Jalili did indicate that Iran might be prepared to talk about the issue, saying: "This can be discussed in the negotiations ... in view of confidence building."


Iran has also previously suggested that 20-percent enrichment was up for negotiation if it received the fuel from abroad instead. It also wants sanctions lifted.


"While an agreement to meet again may not impress skeptics of diplomacy, an important development did occur," said Trita Parsi, an expert on Iran. "The parties began searching for a solution by offering positive measures in order to secure concessions from the other side.


Another expert, Dina Esfandiary of the International Institute for Strategic Studies, said: "I note that the mood is more optimistic and that's great, but a deal still hasn't been reached and in my view its unlikely to be reached before the Iranian elections have come and gone."


(Additional reporting Fredrik Dahl in Almaaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Jon Hemming)



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