Latin America, Europe open summit to boost trade

SANTIAGO: Latin American and European leaders open a two-day summit Saturday to give a fresh impetus to efforts to seal a free trade agreement between their two blocs.

Attending the gathering are some 45 leaders, including German Chancellor Angela Merkel, Spanish Prime Minister Mariano Rajoy, Brazilian President Dilma Rousseff, Cuban leader Raul Castro as well as European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

Although the two blocs have met seven times, it is the 27-member European Union's first summit with the Community of Latin American and Caribbean States (CELAC, its Spanish-language acronym).

Set up in Caracas in December 2011 at the behest of Venezuelan President Hugo Chavez, CELAC groups all American nations except the United States and Canada and aims to boost regional trade and institutional cooperation,.

Chavez, who is convalescing from cancer surgery in Cuba, will not attend the weekend gathering.

Monday, CELAC leaders will hold their own summit here, with Cuba taking over the chairmanship from Chile for one year.

The meeting will seal Cuba's full regional reintegration and mark a major diplomatic coup for President Castro, whose communist-ruled country is still reeling from a 50-year-old crippling US trade embargo.

The 33 CELAC leaders hope to overcome their ideological and economic differences to foster greater regional integration.

"Our efforts (in this area) have not lived up to that is needed and what Latin America deserves," Chilean President Sebastian Pinera conceded.

Shortly before Castro landed here on Friday, about 200 people protested both for and against Havana.

An estimated 100 demonstrators massed outside the Cuban embassy, heeding a call by Chile's ruling party, the conservative Independent Democratic Union, or UDI, to demonstrate against the Castro`s presence in the Chilean capital.

The UDI accuses Castro of harboring the murderers of their party's founder, Jaime Guzman, a senator who was killed in 1991 by the nearly extinct radical leftist group Patriotic Front of Manuel Rodriguez.

The UDI president, along with other lawmakers, also came to the embassy to deliver a letter demanding to know the whereabouts in Cuba of those they allege killed Guzman: Ricardo Poblete, and three other accomplices.

However, the lawmakers were denied entry and then threw the letter into the garden.

Another 100 demonstrators, from a "Group of Solidarity with Cuba," also gathered near the embassy to show support for Cuba .

Ahead of the EU-CELAC summit, Pinera, the host, said the meeting aimed to "to seal a new strategic alliance for development and more open markets."

"It will be the first timethat Latin America will speak with one voice" with Europe, Chilean Foreign Minister Alfredo Moreno said recently.

The EU is the biggest outside investor in Latin America, with three per cent of the direct foreign investment in CELAC or $385 billion in 2010.

Thursday, Van Rompuy and Barroso attended a EU-Brazil summit with Brazilian President Dilma Rousseff in Brasilia.

The two sides called for the speedy conclusion of a free trade pact between the EU and the South American trading bloc Mercosur.

Negotiations over the pact have so far stumbled over differences on agriculture -- notably Europe's subsidies to its farmers, which undermine South America's efforts to sell its own products.

Meanwhile, a parallel Summit of the Peoples got under way here Friday with a march of 1,000 leftists protesting capitalist economic policies.

The march turned violent when hooded demonstrators tore down traffic lights and shops' shutters in central Santiago, prompting police to intervene with water cannons ans tear gas.

At least five protesters were arrested.

The two-day counter-summit brings together representatives of more than 400 social movements from across Latin America and Europe.

- AFP/fa

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Review: While "jOBS" fawns over subject, film falls flat

Ashton Kutcher as Steve Jobs in "jOBS."

(Credit:
Five Star Feature Films)

PARK CITY, UTAH--The eagerly awaited biopic "jOBS" opens in 2001, when Apple's iconic co-founder arrives at Town Hall on Apple's Cupertino campus with good news. A secret team, Steve Jobs tells his employees, has built a product that will revolutionize the way everyone listens to music. Before he can even show them the iPod, the employees have sprung to their feet, wild-eyed and ecstatic, and their thunderous applause is eventually drowned out only by strings swelling in the background. It's a scene that sets the tone for all that is to follow: for most of the film's two hours, "jOBS" rarely stops clapping for its subject.

The team behind "jOBS," which was directed by Joshua Michael Stern, began working on the project shortly before Jobs retired from Apple in 2011. The script by first-time screenwriter Matt Whiteley covers Jobs' life from 1974, when Jobs attended classes at Reed College in Oregon, to 2001, when he announced the
iPod to Apple employees. Along the way "jOBS" covers most of the major milestones of its subject's time at Apple: the Apple I, the Apple II, the Lisa, and the Macintosh all are shown in development, as Jobs (a hard-working Ashton Kutcher) works to bring his vision of personal computing to the masses. Jobs hand-picks John Sculley to become Apple's CEO, hoping his marketing expertise will help the company overtake IBM in the PC market. But Sculley disappoints Jobs, who alienates his allies on Apple's board of directors and is ousted from the company he started. Only Apple's near-death experience in 1997 is enough to bring him back to Apple -- first as an adviser, then as an "interim" CEO -- and with the success of the Bondi blue iMacs, Apple was ascendant once again.

It's a story that will be familiar to readers of Walter Isaacson's recent Jobs biography or any number of other histories of the company. The opportunity "jOBS" had was to render these legendary events of Silicon Valley's history on screen, and to dramatize the contradictions of a man who remained unknowable even to some of those closest to him.

The movie gives it a shot. Kutcher drew skepticism when he was announced as the film's lead, despite an uncanny resemblance to the man he would be playing. But he throws himself into the role, inhabiting Jobs in his mannerisms and gestures while doing a more than creditable impression of the man's voice. Kutcher also captures Jobs' deliberate, slightly hunched-over walk. At moments, as during an enjoyable sequence in which Jobs recruits members for the Macintosh team, Kutcher disappears into the role.

The filmmakers do show Jobs being a jerk: he sleeps around, he yells at people, he parks in handicapped spaces. He persuades Steve Wozniak (Josh Gad) to perform crucial work for him, but lies about how much he is being paid, so he can dramatically underpay his best friend. An hour into the movie, he fires someone during an argument over font availability on the Lisa.

Yet the filmmakers are more interested in showing Jobs going about the work of being a genius. Over and over again, minor characters explain to him why something can't be done; Kutcher-as-Jobs smiles enigmatically and waves away their concerns. (It is left to someone else, far off screen, to turn his visions into reality.) We watch Jobs out-negotiate a computer parts store owner, lecture the team making the Lisa, and ride to the rescue of the Macintosh. Each time, he speaks of how the technology Apple is building will improve the lives of average people. Co-workers argue with him, but they never get anywhere, because their parts are poorly written and the filmmakers have no interest in showing their subject being wrong about his work. The film mentions Lisa's failure but has no interest in what part Jobs played in that failure; all Apple failures in "jOBS" are portrayed as the result of conservative, backward-thinking executives beholden only to their shareholders. The result is that the viewer spends two hours watching cardboard cutouts lose arguments to Ashton Kutcher.

Kutcher speaks fully 40 percent of the lines in "jOBS." Unfortunately, he has almost no one to play off of. Dermot Mulroney, as early Apple investor Mike Markkula, shakes his head at Jobs' excesses without ever really challenging him. J.K. Simmons, as the Apple board chairman who oversees Jobs' ouster, is a cartoon villain. Women in the film barely exist; an actress playing Chris-Ann Brennan has a single under-written scene informing a young Jobs that she is carrying his baby; years later in the film, a small scene shows Jobs at home with his wife. Only Gad, as Wozniak, gets a scene standing up to the great man -- as Woz quits Apple, he criticizes Jobs for losing his humanity amid a single-minded pursuit of making great products. It's something even Jobs' staunchest admirers have to wrestle with, and the film could have used more of that.

Others will write of the things "jOBS" omits, gets wrong, or simply avoids. My primary disappointment was in how shallow the film felt, given the extensive historical record. In the early days Jobs' co-workers had to wrestle with a man who smelled bad, who cried often, who yelled constantly, who missed deadlines, who overspent his budget by millions. He did it in service of products we love and use daily, and yet his obsessions took a toll on those around him. It also inspired others to do the best work of their lives, pushing themselves further than they ever imagined they can go. There is great drama to be found in all that, but it is not to be found in the saccharine "jOBS."

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Notre Dame president defends handling of Te'o case

SOUTH BEND, Ind. Top administrators at Notre Dame decided within hours of hearing about the Manti Te'o dead girlfriend hoax that it did not involve a crime and within two days had concluded there was no NCAA violation, according to a letter sent by the university president to board of trustee members on Friday.

The Rev. John Jenkins told trustees that despite "the unrelenting scrutiny of hundreds of journalists and countless others — and repeated attempts by some to create a different impression- no facts relating to the hoax have been at odds with what Manti told us" on Dec. 27-28.

The letter was obtained Friday by The Associated Press from a university official who provided it on condition of anonymity because the private school's internal workings are confidential.

The eight-page document, including a four-page letter from Jenkins and a four-page outline of how Notre Dame handled the hoax, is both a defense and an explanation of the school's actions.

"We did our best to get to the truth in extraordinary circumstances, be good stewards of the interests of the university and its good name and — as we do in all things — to make the well-being of our students one of our very highest priorities," Jenkins concluded in his letter.

Some of the timeline Notre Dame outlined is well known, including that its star linebacker disclosed the scam to his coaches the day after Christmas and it remained unknown to the public until Deadspin.com broke the story on Jan. 16, long after the Fighting Irish lost the BCS championship to Alabama on Jan. 7.

Jenkins wrote that Notre Dame officials talked in the hours after hearing from Te'o on Dec. 26 and agreed there was no indication of a crime or student conduct code violation. Athletic director Jack Swarbrick spoke with Te'o the next day, and on Dec. 28 the school concluded there were no indications of an NCAA rules violation, which could have put Notre Dame's 12-0 regular season in jeopardy.

The school then made moves to find out who was behind the hoax, thereby protecting Te'o and itself.

"For the first couple of days after receiving the news from Manti, there was considerable confusion and we simply did not know what there was to disclose," Jenkins wrote.

13 Photos

Manti Te'o

On Jan. 2, after several days of internal discussion and a week after Te'o's disclosure, Notre Dame retained Stroz Friedberg, a New York computer forensics firm to investigate the case and whether any other football players had been targeted. The firm did not return phone or email messages left Friday.

Notre Dame officials believed Te'o's girlfriend — whether alive or dead — was at least a real person until the next day, when Stroz Friedberg said it could not find any evidence that Kekua or most of her relatives ever existed. And by Jan. 4, two days after hiring Stroz Friedberg, Notre Dame officials concluded Te'o was the victim of the hoax, there was no threat to the school and the private investigation was suspended.

"We concluded that this matter was personal to Manti," Jenkins wrote, deciding it was up to Te'o to disclose, especially after he signed with Creative Artists Agency on the day after the BCS game.

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WH, Senators to Begin Push on Immigration Reform

The White House and a bipartisan group of senators next week plan to begin their efforts to push for comprehensive immigration reform.

President Barack Obama will make an announcement on immigration during a Tuesday trip to Las Vegas, Nevada, the White House said on Friday. The Senate group is expected make their plans public around the same time, the Associated Press reported.

See Also: Where Do Labor Unions Stand on Immigration?

For Obama, immigration reform is a campaign promise that has remained unfulfilled from his first White House run in 2008. During his 2012 re-election campaign, the president vowed to renew his effort to overhaul the nation's immigration system. It has long been expected that Obama would roll out his plans shortly after his inauguration.

The president's trip to Las Vegas is designed "to redouble the administration's efforts to work with Congress to fix the broken immigration system this year," the White House said.

Ever since November's election, in which Latino voters turned out in record numbers, Republicans and Democrats have expressed a desire to work on immigration reform. Obama has long supported a bill that would make many of the nation's 11 million undocumented immigrants without criminal records eligible to apply for an earned pathway to citizenship, which includes paying fines and learning English.

Charles Dharapak/AP Photo

But the debate over a pathway to citizenship is expected to be contentious. Other flashpoints in an immigration reform push could include a guest-worker program, workplace enforcement efforts, border security, and immigration backlogs.

In a statement, the White House said that "any legislation must include a path to earned citizenship."

Ahead of his immigration push next week, Obama met today with a group of lawmakers from the Congressional Hispanic Caucus (CHC), including chairman Rubén Hinojosa (D-Texas) , Sen. Bob Menendez (D-N.J.), Democratic Caucus Chair Rep. Xavier Becerra (D-Calif.), and CHC Immigration Task Force Chair Rep. Luis Gutierrez (D-Ill.), the latter's office said. CHC members are expected to play a pivotal role in the debate.

"The president is the quarterback and he will direct the team, call the play, and be pivotal if we succeed. I am very optimistic based on conversations with Republicans in the House and Senate that we will do more than just talk about the immigration issue this year," Gutierrez said in a statement following the CHC meeting with Obama. "The president putting his full weight and attention behind getting a bill signed into law is tremendously helpful. We need the president and the American people all putting pressure on the Congress to act because nothing happens in the Capitol without people pushing from the outside."

A bipartisan group of eight senators, which includes Menendez, has also begun talks on drafting an immigration bill and will play an integral part in the process of passing a bill through Congress. Sen. Marco Rubio (R-Fla.), who has been participating in talks with others senators, has also unveiled his own outline for an immigration proposal.

The group of senators have reportedly eyed Friday as the date when they'll unveil their separate proposal, according to the Washington Post.

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Egypt deploys troops in Suez after 9 killed on anniversary of uprising

CAIRO/ISMAILIA, Egypt (Reuters) - Egypt's armed forces deployed troops in the city of Suez early on Saturday after nine people were shot dead during nationwide protests against President Mohamed Mursi, underlining the country's deep divisions as it marked the second anniversary of the uprising that toppled Hosni Mubarak.

Eight of the dead, including a policeman, were shot dead in Suez, and another was shot and killed in the city of Ismailia, medics said. Another 456 people were injured across Egypt, officials said, in unrest on Friday fuelled by anger at Mursi and his Islamist allies over what the protesters see as their betrayal of the revolution.

Mursi said the state would not hesitate in "pursuing the criminals and delivering them to justice". In a statement, he also called on Egyptians to respect the principles of the revolution by expressing their views peacefully.

The troops were deployed in Suez after the head of the state security police in the city asked for reinforcements. The army distributed pamphlets to residents assuring them the deployment was temporary and meant to secure the city.

"We have asked the armed forces to send reinforcements on the ground until we pass this difficult period," Adel Refaat, head of state security in Suez, told state television.

Friday's anniversary laid bare the divide between the Islamists and their secular rivals.

The schism is hindering the efforts of Mursi, elected in June, to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.

Inspired by the popular uprising in Tunisia, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that already triggered bloody street battles last month.

Thousands of opponents of Mursi massed on Friday in Cairo's Tahrir Square - the cradle of the revolt against Mubarak - to rekindle the demands of a revolution they say has been hijacked by the Muslim Brotherhood, the group from which Mursi emerged.

In Suez, the military deployed armored vehicles to guard state buildings, witnesses and security sources said, as symbols of government were targeted across the country.

Street battles erupted in cities including Cairo, Alexandria, Suez and Port Said. Arsonists attacked at least two state-owned buildings. An office used by the Muslim Brotherhood's political party was also torched.

"Our revolution is continuing. We reject the domination of any party over this state. We say no to the Brotherhood state," Hamdeen Sabahy, a popular leftist leader, told Reuters.

The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after December's violence, stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.

The Brotherhood denies accusations that it is seeking to dominate Egypt, labeling them a smear campaign by its rivals.

'LEAVE! LEAVE! LEAVE!'

There were conflicting accounts of the lethal shooting in Suez. Some witnesses said security forces had opened fire in response to gunfire from masked men.

News of the deaths capped a day of violence that started in the early hours of Friday. Before dawn in Cairo, police battled protesters who threw petrol bombs and firecrackers as they approached a wall blocking access to government buildings near Tahrir Square.

Clouds of teargas filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by youths, a Reuters witness said.

Skirmishes between stone-throwing youths and the police continued in streets around the square into the day. Ambulances ferried away a steady stream of casualties.

Protesters echoed the chants of 2011's historic 18-day uprising. "The people want to bring down the regime," they chanted. "Leave! Leave! Leave!" chanted others as they marched towards the square.

"We are not here to celebrate but to force those in power to submit to the will of the people. Egypt now must never be like Egypt during Mubarak's rule," said Mohamed Fahmy, an activist.

There were similar scenes in Suez and Alexandria, where protesters and riot police clashed near local government offices. Black smoke billowed from tires set ablaze by youths.

In Cairo, police fired teargas to disperse a few dozen protesters trying to remove barbed-wire barriers protecting the presidential palace, witnesses said. A few masked men got as far as the gates before they were beaten back.

Teargas was also fired at protesters who tried to remove metal barriers outside the state television building.

Outside Cairo, protesters broke into the offices of provincial governors in Ismailia and Kafr el-Sheikh in the Nile Delta. A local government building was torched in the Nile Delta city of al-Mahalla al-Kubra.

With an eye on parliamentary elections likely to begin in April, the Brotherhood marked the anniversary with a charity drive across the nation. It plans to deliver medical aid to one million people and distribute affordable basic foodstuffs.

Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Mohamed Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.

"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.

Mursi's opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.

"I am taking part in today's marches to reject the warped constitution, the 'Brotherhoodisation' of the state, the attack on the rule of law, and the disregard of the president and his government for the demands for social justice," Amr Hamzawy, a prominent liberal politician, wrote on his Twitter feed.

The Brotherhood says its rivals are failing to respect the rules of the new democracy that put the Islamists in the driving seat via free elections.

(Additional reporting by Tom Perry, Ahmed el-Shemi, Ashraf Fahim, Shaimaa Fayed and Yasmine Saleh in Cairo and Abdel Rahman Youssef in Alexandria; Writing by Tom Perry; Editing by Robert Woodward and Peter Cooney)

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Xi Jinping given Japan PM's letter amid islands row

BEIJING: An envoy from Tokyo handed Chinese leader Xi Jinping a personal letter from new Japanese Prime Minister Shinzo Abe on Friday, in a meeting aimed at smoothing relations amid a bitter territorial row.

Natsuo Yamaguchi, head of the New Komeito party, the junior partner in Japan's ruling coalition, is the most senior Japanese parliamentarian to visit China since the long-running row over disputed islands intensified last September.

At the Great Hall of the People in Beijing both sides expressed appreciation for the trip before beginning private talks, and it was not revealed what the letter said.

"Mr Yamaguchi visits China at a period in which Sino-Japanese relations face a special situation. We attach great importance to your visit," said Xi, the head of China's ruling Communist party and the country's president-to-be.

Yamaguchi said he was "incomparably happy" about the meeting.

While he has no official role in the Tokyo government headed by the hawkish Abe, the occasion was a rare positive step as the territorial dispute weighs heavily on relations between the two Asian giants.

Beijing has repeatedly sent ships to waters near the islands since Japan nationalised part of the chain in September, a move that triggered a diplomatic dispute and huge anti-Japan demonstrations across China.

China has also sent air patrols near the Tokyo-controlled islands, known as the Senkakus in Japan but claimed by Beijing as the Diaoyus. The chain could sit atop vast mineral reserves, it is believed.

Earlier this week, Yamaguchi said he hoped to improve ties but that Tokyo had no plans to compromise over the islands.

"I would like to make a step toward opening the door to normalising our relations," he told reporters before his departure.

Regarding the islands, he said: "Our stance is that no territorial problem exists. That's a shared recognition among the government and coalition."

- AFP/fa

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Intel's Yolo low-cost smartphone debuts

Intel Yolo smartphone will be priced at about $125 for sale in Africa.

(Credit:
Anandtech)

Safaricom today announced a smartphone based an Intel design -- part of the chipmaker's effort to enter the global low-cost phone market.

The Yolo smartphone is aimed "cost-conscious...first-time buyers" in Kenya, said Intel, which is responsible for both the core electronics and phone's design.

That design was announced at CES 2013.

Inside the 3.5-inch Yolo is an Intel Atom Z2420 processor that can run at speeds up to 1.2 GHz and Intel's XMM 6265 modem with HSPA+ support for global roaming.

Yolo will be sold in Safaricom shops in Kenya at an entry price of Kshs. 10,999 (about $125) and comes bundled with 500 MB of free data.

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Battery expert: "I would not fly in a Dreamliner"

(CBS News) WASHINGTON - Investigators say they still don't know what caused batteries to burn in two Boeing 787 Dreamliners, and until they figure that out and how to fix the problem, none of the planes will be allowed to fly.

More than any other plane, the Dreamliner relies on lithium ion batteries to help power its advanced electrical system. They're lighter and more powerful than older battery types, but they contain a highly flammable liquid electrolyte.

U.S. officials defend handling of 787 mishaps

Boeing 787 probe turns to battery companies

Boeing plans to carry on with Dreamliner production

Federal investigators are examining the disassembled battery from the 787 that caught fire in Boston January 7, spewing molten electrolyte.

George Blomgren worked for Eveready, a batteries and flashlights company, for 40 years. He says lithium ion batteries are bundled together for the 787, and that increases the risk.

"These fires burn at very high temperatures, so they are just very dangerous fires," he said.

George Blomgren, a battery expert for Eveready

/

CBS News

The Boston fire, and the burned-out battery on a Dreamliner in Japan, is not the first time lithium ion batteries have caused problems.

In 2011, a Chevy Volt lithium ion battery was damaged in a crash test. Three weeks later, it burst into flames. Chevrolet installed a number of fixes to prevent fires.

Safety features also were added to lithium ion batteries in some cell phones and laptops after 56 million were recalled for risk of overheating and exploding.

Boeing says lithium ion batteries "best met the performance and design objectives of the 787" and "Based on everything we know at this point, we have not changed our evaluation."

Blomgren considers the safety of lithium ion batteries on planes questionable.

"From what I know about incidents, I would not fly in a Dreamliner tomorrow. I just wouldn't feel that it was appropriate or safe," Blomgren said.

Many experts believe in the promise of lithium ion batteries, including for airlines, but they just aren't sure its safety has been perfected.

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It's Official: Women Will Serve in Combat

Women will soon be able to serve in combat, as things officially changed with the stroke of a pen today at the Pentagon.

At a joint news conference, Secretary of Defense Leon Panetta and Joint Chiefs of Staff Charman Gen. Martin Dempsey signed a memorandum rolling back a 1994 directive prohibiting women from doing so.

"They serve, they're wounded, and they die right next to each other," Panetta said of women and men in the military. "The time has come to recognize that reality.

"If they're willing to put their lives on the line, then we need to recognize that they deserve a chance," Panetta said, noting that he wants his own granddaughters and grandsons to have the same opportunities in their lives and careers.

The change won't be immediate, however. While Panetta announced that thousands of new positions will now be open to women, he has asked the military branches to submit plans by May on how to integrate women into combat operations. He set a January 2016 deadline for branches to implement the changes, giving military services time to seek waivers for certain jobs.

Both Panetta and Dempsey said they believe the move will strengthen the U.S. military force.

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"Ultimately, we are acting to strengthen the armed forces," Dempsey said. "We will extend opportunities to women in a way that maintains readiness, morale and unit cohesion."

Women have already served in combat in Iraq and Afghanistan, as ABC News' Martha Raddatz and Elizabeth Gorman reported in 2009: Prohibited from serving in roles "whose primary mission is to engage in direct combat on the ground," women in support roles, nonetheless, served in support roles on the frontlines, where they have fought, been wounded and died.

Women have also flown combat missions since 1993 and have served on submarines since 2010.

Panetta noted that 152 women have died serving in the U.S. military in Iraq and Afghanistan. Dempsey said he realized a change was inevitable when he noticed two female turret gunners protecting a senior military officer.

"It's clear to all of us that women are contributing in unprecedented ways to the military's mission of defending the nation," Panetta said. "Women represent 15 percent of the force of over 200,000 [and] are serving in a growing number of critical roles on and off the battlefield.

"I've gone to Bethesda to visit wounded warriors, and I've gone to Arlington to bury our dead. There's no distincton."

Panetta and Dempsey said President Obama supported the move, while warning them to maintain military readiness as they considered the change.

Obama hailed the move in a written statement

"Today, by moving to open more military positions -- including ground combat units -- to women, our armed forces have taken another historic step toward harnessing the talents and skills of all our citizens," he said.

"This milestone reflects the courageous and patriotic service of women through more than two centuries of American history and the indispensable role of women in today's military," Obama said.

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Japan envoy says territory disputes with China can be resolved

BEIJING (Reuters) - Japan believes tensions with China fanned by a dispute over a group of uninhabited islands can be resolved, a special envoy from Tokyo said on Friday after meeting China's president-in-waiting, Xi Jinping.

Natsuo Yamaguchi, head of New Komeito, the junior partner in Japan's ruling coalition, said Japan will take a broad view in dialogue with Beijing to resolve the dispute between the world's second- and third-largest economies, which has escalated in recent weeks.

"Japan wishes to pursue ties with China while looking at the big picture," Yamaguchi told reporters after his meeting with Xi, the chief of China's ruling Communist Party who is set to take over as president in March.

"I firmly believe our differences with China can be resolved," Yamaguchi said, adding that he did not directly discuss the islands issue with Xi.

Japan's nationalization in September of some of the islands, known as Senkaku in Japan and Diaoyu in China, sparked violent anti-Japanese protests across China. Some Japanese businesses were looted and Japanese citizens attacked.

Japanese manufacturers reported considerably lower sales in China in the following months.

Japanese military planes have in recent weeks been scrambled numerous times against Chinese planes approaching airspace over the islands.

Chinese planes have been shadowing Japanese aircraft elsewhere over the East China Sea and patrol vessels from the two countries have played a game of cat-and-mouse near the islands.

Yamaguchi said he delivered a letter to Xi from Japanese Prime Minister Shinzo Abe.

"We agreed that it is important to continue dialogue with the aim of holding a Japan-China summit between the two leaders," he said, though no specific details were given.

While Yamaguchi has no formal position in the government, he is leader of relatively dovish New Komeito, which joined the Liberal Democratic Party in its return to power last month. LDP leader Abe became prime minister.

China insists the islands are its territory and that it will brook no dispute over the matter.

The islands were put under Japan's control in 1895 and were part of the post-World War Two U.S. military occupation zone from 1945-72. They were then returned to Tokyo by U.S. authorities in a decision China and Taiwan later contested.

China has asked the United Nations to consider later this year the scientific validity of its claim over the islands as a natural extension of its continental shelf under a U.N. convention.

Japan says the world body should not be involved.

(Reporting by Terril Yue Jones, writing by Michael Martina,; editing by Jonathan Standing and Ron Popeski)

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