State Department security chief leaves post over Benghazi

WASHINGTON (Reuters) - The U.S. State Department said on Wednesday its security chief had resigned from his post and three other officials had been relieved of their duties following a scathing official inquiry into the September 11 attack on the U.S. mission in Benghazi.

Eric Boswell has resigned effective immediately as assistant secretary of state for diplomatic security, State Department spokeswoman Victoria Nuland said in a terse statement. A second official, speaking on condition of anonymity, said Boswell had not left the department entirely and remained a career official.

Nuland said that Boswell, and the three other officials, had all been put on administrative leave "pending further action."

An official panel that investigated the incident concluded that the Benghazi mission was completely unprepared to deal with the attack, which killed U.S. Ambassador Christopher Stevens and three other Americans.

The unclassified version of the report, which was released on Tuesday, cited "leadership and management" deficiencies, poor coordination among officials and "real confusion" in Washington and in the field over who had the authority to make decisions on policy and security concerns.

"The ARB identified the performance of four officials, three in the Bureau of the Diplomatic Security and one in the Bureau of (Near Eastern) Affairs," Nuland said in her statement, referring to the panel known as an Accountability Review Board.

Secretary of State Hillary Clinton accepted Boswell's decision to resign effective immediately, the spokeswoman said.

Earlier, a U.S. official who spoke on condition of anonymity said Boswell, one of his deputies, Charlene Lamb, and a third unnamed official has been asked to resign. The Associated Press first reported that three officials had resigned.

PANEL STOPS SHORT OF BLAMING CLINTON

The Benghazi incident appeared likely to tarnish Clinton's four-year tenure as secretary of state but the report did not fault her specifically and the officials who led the review stopped short of blaming her.

"We did conclude that certain State Department bureau-level senior officials in critical positions of authority and responsibility in Washington demonstrated a lack of leadership and management ability appropriate for senior ranks," retired Admiral Michael Mullen, one of the leaders of the inquiry, told reporters on Wednesday.

The panel's chair, retired Ambassador Thomas Pickering, said it had determined that responsibility for security shortcomings in Benghazi belonged at levels lower than Clinton's office.

"We fixed (responsibility) at the assistant secretary level, which is, in our view, the appropriate place to look for where the decision-making in fact takes place, where - if you like - the rubber hits the road," Pickering said after closed-door meetings with congressional committees.

The panel's report and the comments by its two lead authors suggested that Clinton, who accepted responsibility for the incident in a television interview about a month after the Benghazi attack, would not be held personally culpable.

Pickering and Mullen spoke to the media after briefing members of the House of Representatives Foreign Affairs Committee and Senate Foreign Relations Committee behind closed doors on classified elements of their report.

Clinton had been expected to appear at an open hearing on Benghazi on Thursday, but is recuperating after suffering a concussion, dehydration and a stomach bug last week. She will instead be represented by her two top deputies.

Clinton, who intends to step down in January, said in a letter accompanying the review that she would adopt all of its recommendations, which include stepping up security staffing and requesting more money to fortify U.S. facilities.

The National Defense Authorization Act for 2013, which is expected to go to Congress for final approval this week, includes a measure directing the Pentagon to increase the Marine Corps presence at diplomatic facilities by up to 1,000 Marines.

Some Capitol Hill Republicans who had criticized the Obama administration's handling of the Benghazi attacks said they were impressed by the report.

"It was very thorough," said Senator Johnny Isakson. Senator John Barrasso said: "It was very, very critical of major failures at the State Department at very high levels." Both spoke after the closed-door briefing.

Others, however, took a harsher line and called for Clinton to testify as soon as she is able.

"The report makes clear the massive failure of the State Department at all levels, including senior leadership, to take action to protect our government employees abroad," Representative Mike Rogers, the Republican chairman of the House Intelligence Committee, said in a statement.

Senator Bob Corker, who will be the top Republican on the Senate Foreign Relations Committee when the new Congress is seated early next year, said Clinton should testify about Benghazi before her replacement is confirmed by the Senate.

Republicans have focused much of their firepower on U.S. Ambassador to the United Nations Susan Rice, who appeared on TV talk shows after the attack and suggested it was the result of a spontaneous protest rather than a premeditated attack.

The report concluded that there was no such protest.

Rice, widely seen as President Barack Obama's top pick to succeed Clinton, withdrew her name from consideration last week.

(Additional reporting by Tabassum Zakaria and Susan Cornwell; Editing by Christopher Wilson)

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Temasek raises stake in Olam

SINGAPORE: Temasek Holdings has raised its stake in commodity trader Olam International to 17 percent from 16.3 percent.

In a filing with the Singapore Exchange, Olam said Temasek had bought 200,000 shares for S$293,000 from the open market on Tuesday through its investment vehicle Aranda Investments.

In an emailed comment to Channel NewsAsia, a Temasek spokesperson said: "We have invested in Olam over several years. In our judgement, the company represents a reasonably attractive investment over the long term and we are pleased to have the opportunity to add to our stake."

Earlier this month, Olam said Temasek is backing its rights issue of bonds and warrants to raise as much as US$1.2 billion.

This could potentially translate to the investment firm owning as much as 29 percent of Olam if it exercises all the warrants in 2016 at the earliest.

Kewalram Chanrai Group, Olam's largest investor with nearly a 20 percent stake, has also said it will back the issue.

Olam has been the target of short-seller Carson Block and his research firm Muddy Waters, which questioned the company's allegedly flawed accounting standards that they claimed masked its debts.

- CNA/al

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Funds crunch hits war on malaria

NEW DELHI: The amount of funds available for malaria prevention and control globally is less than half what is needed, the World Health Organization (WHO) has said in a report. While it is estimated that $5.1 billion is needed every year between 2011 and 2020 to achieve universal access to malaria interventions, only $2.3 billion was available in 2011. The WHO has blamed this on a slowing down in the efforts to reverse the epidemic.

This was stated in the World Malaria Report released on Monday, which summarised information from 104 malaria-endemic countries, including India. International funding for malaria control has been steadily rising, going up from less than $100 million in 2000 to $1.71 billion in 2010. National government funding for malaria programmes has also been increasing in recent years, touching an estimated $625 million in 2011. Yet the funds are far from adequate as malaria hits the poorest countries with higher proportions of their population living in poverty (less than $1.25 per person per day) have higher mortality rates from malaria.

Projections of both domestic and international resources available between 2013 and 2015 indicate that total funding for malaria control will remain at less than US$ 2.7 billion, substantially below the amount required.

The African continent accounts for the highest incidence of malaria with 219 million cases and 90% of all malarial deaths in the world. In the Southeast Asia region, India has the highest incidence of malaria (24 million cases) followed by Indonesia and Myanmar. According to the latest WHO estimates, worldwide there were about 219 million cases of malaria in 2010 and an estimated 660,000 deaths.

Together, the Democratic Republic of the Congo and Nigeria are estimated to account for over 40% of all malaria deaths globally. Similarly, the Democratic Republic of the Congo, India and Nigeria account for 40% of malaria cases.

The world report claims that 50 countries are on track to reduce their malaria case incidence rates by 75%, in line with World Health Assembly and Roll Back Malaria targets for 2015. However, these 50 countries account for just 3% (7 million) of the total estimated malaria cases. Moreover, malaria surveillance systems detect only around 10% of the estimated global number of cases, with case detection being lowest in the countries with the highest burden of malaria. In the African and Western Pacific Regions, the main constraint is the small proportion of patients attending public facilities who receive a diagnostic test for malaria.

In the Southeast Asia Region, the most important issue is the high proportion of patients who seek treatment in the private sector, as is happening in India where the private sector is not part of the health reporting system. With such constraints, most of the WHO figures are based on estimates and modelling.

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Newtown Shooting: Bushmaster Under Fire

When the private investment firm Cerberus Capital Management announced Tuesday it would unload its interest in Bushmaster – the company that built the weapon used in last week's mass murder of 20 Connecticut first graders -- it marked the beginning of what experts say is likely to be a challenging period for the North Carolina-based weapons manufacturer.

"They are looking at a taint on their brand and looking at a marketplace that could change dramatically with respect to their weapon," said Chris Lehane, a crisis public relations expert who worked in the Clinton White House. "To me the fact that Cerberus is pulling out is a pretty significant defining moment."

For years, Bushmaster has been marketing itself to testosterone-fueled male customers, issuing "man cards" to customers who want to be "card carrying men." Now, Lehane and others said the company is facing the prospect of being branded the weapon of choice for mass killers. The Newtown, Connecticut shooting marked the fourth time a Bushmaster has been implicated in a mass shooting since 1999, including the Beltway sniper case that left 10 dead and three more wounded.

Cerberus announced Tuesday it wanted distance from Bushmaster, calling the murder of 20 first grade children at Sandy Hook Elementary School a "watershed event." The investment firm, which is chaired by former Vice President Dan Quayle, noted in its statement that Bushmaster may not be an investment consistent with the interests of its clients. Its investors include the pension plans of firemen, teachers, and policemen.

Rich Pedroncelli/AP Photo

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Lehane said the announcement could signal a shift in the way investors view companies that make military style weapons for a civilian market.

"It reminds me of the time when tobacco began to be associated with a negative light, or the divestiture movement surrounding companies in South Africa," he said. "Where financial markets believe they are going to pay a price."

In addition, a spokesman for Cerberus Group confirmed that the father of Stephen Feinberg, the founder of Cerberus Group, lives in Newtown.

Gun control groups have also lined up to criticize the weapons manufacturer, arguing that the company was selling civilian customers a weapon clearly designed for war.

"This thing is just a killing machine," said Josh Horwitz, executive director of the Coalition to Stop Gun Violence. "[I]t's a weapon that can easily shoot hundreds of … In fact it's very similar to the weapon that James Holmes used to shoot up the movie theater in Aurora."

The company has not responded to phone calls seeking comment, but gun enthusiasts say the weapon's menacing appearance can appeal to civilians looking for a means to secure their homes, and its ease of use can appeal to those looking for a weapon for target shooting.

"The [assault rifle] platform is the most popular in the country," said Frank Cornwall, a firearms instructor in Connecticut. "Civilians have always bought similar type arms to the military. And this is a very versatile platform. Quite a popular hunting and target shooting gun."

Phillip Stutts, a crisis management consultant who worked for President George W. Bush, said he has been surprised by the silence of the gun manufacturer.

"Bushmaster doesn't have to take responsibility for this tragedy, but they have a responsibility to respond to this tragedy," he said. "And they haven't. They have to get out in front of this. It needs to be corrected ASAP."

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Inquiry harshly criticizes US State Dept. over Benghazi attack

WASHINGTON (Reuters) - Security at the U.S. mission in Benghazi, Libya was grossly inadequate to deal with a September 11 attack that killed a U.S. ambassador and three others because of failures within the State Department, an official inquiry found on Tuesday.

In a scathing assessment, the review cited "leadership and management" deficiencies at two department offices, poor coordination among officials and "real confusion" in Washington and in the field over who had the responsibility, and the power, to make decisions that involved policy and security concerns.

The attack killed Ambassador Christopher Stevens and three other Americans and set off a political furor as Republicans used the issue to attack President Barack Obama before the November 6 election in which he won a second term in office.

The report's harsh assessment seemed likely to tarnish the four-year tenure of Secretary of State Hillary Clinton, who said in a letter accompanying the review that she would adopt all of its recommendations.

"Systemic failures and leadership and management deficiencies at senior levels within two bureaus of the State Department ... resulted in a special mission security posture that was inadequate for Benghazi and grossly inadequate to deal with the attack that took place," said the unclassified version of the report by the official "Accountability Review Board."

The board specifically faulted the department's Bureau of Near Eastern Affairs, the regional office which is responsible for the Middle East and North Africa, and the Bureau of Diplomatic Security, its law enforcement and security arm.

The five-member board said U.S. intelligence provided no "specific tactical warning" of the attack and that there was "little understanding of militias in Benghazi and the threat they posed to U.S. interests" in the eastern Libyan city, where the central government has little influence.

The incident has raised questions about the adequacy of security at U.S. embassies around the globe and where to draw the line between protecting American diplomats in dangerous places while giving them enough freedom to do their jobs.

Jon Alterman, head of the Middle East program at the Center for Strategic and International Studies, said the assessment reflected poorly on Clinton and its recommendations would probably make life harder for diplomats in the field

"This is a mark against Secretary Clinton. While she was not singled out, the report highlighted the lack of leadership and organization on security issues, and those fall into her bailiwick," Alterman said.

"The report, however, relies a little too much on bureaucratic fixes," he added. "Sprinkling people throughout the system who are not only empowered to say 'no,' but have an institutional interest in doing so, will make it harder for diplomats to get out of tightly guarded facilities."

DID LOCAL GUARDS LEAVE GATE OPEN?

The report faulted as "misplaced" the mission's dependence for security support on the "armed but poorly skilled" Libyan February 17 Martyrs' Brigade militia members and unarmed guards hired by State Department contractor Blue Mountain Libya.

No Blue Mountain guards were outside the compound immediately before the attack to provide early warning, which was their responsibility. The report raised the possibility that Blue Mountain guards left the "pedestrian gate open after initially seeing the attackers and fleeing the vicinity. They had left the gate unlatched before."

The board found little evidence that the February 17 guards alerted Americans to the attack or swiftly summoned more militia members to help once it was under way. There had been questions of reliability in the weeks preceding the attack.

"At the time of Ambassador Stevens' visit, February 17 militia members had stopped accompanying special mission vehicle movements in protest over salary and working hours," the report said.

The board recommended that the State Department create a new, senior position to oversee security at "high threat" posts, to strengthen security at such posts beyond what is usually provided by host governments, and to consult outside experts on "best practices" for operating in dangerous environments.

The department should also hire more security personnel at dangerous posts, ensure key policy and security staff serve there for at least a year and consider making it easier to punish those who perform poorly in future security incidents.

The political uproar in the United States over the Benghazi attack has already claimed one victim.

U.S. Ambassador to the United Nations Susan Rice, widely tipped as a front-runner to replace Clinton when she steps down as secretary of state early next year, last week withdrew her name from consideration, saying she wished to avoid a potentially disruptive Senate confirmation process.

Republican lawmakers had blasted Rice for comments she made on several television talk shows in the aftermath of the attack in which she said preliminary information suggested the assault was the result of protests against an anti-Muslim video made in California rather than a premeditated strike.

The review, however, concluded that no protest took place before the attack. Rice has said she was relying on talking points drawn up by U.S. intelligence officials.

(Additional reporting by Paul Eckert and Andrew Quinn.; Editing by Christopher Wilson)

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Remains of man in armour found at "Pompeii of Japan"

TOKYO: The remains of a high-caste man wearing armour who was buried by hot ash -- possibly as he tried to calm the wrath of an erupting volcano -- have been found in an area known as the "Pompeii of Japan".

Archaeologists say they have unearthed the well-preserved body of a sixth-century man who had apparently turned to face a flow of molten rock as it gushed through his settlement.

"Under normal circumstances, you would flee if pyroclastic flows are rushing toward you and bringing waves of heat. But this person died facing it," said Shinichiro Ohki, of Gunma Archaeological Research Foundation.

"Maybe, if he were someone of a high position, he might have been praying, or doing something in the direction of the volcano and attempting to appease its anger," Ohki told AFP on Monday.

The remains, along with a part of an infant's skull, were found in the Kanai Higashiura dig in Gunma prefecture, roughly 110 kilometres (70 miles) northwest of Tokyo, at the site of the volcanic Mount Haruna.

The find comes from an area known to enthusiasts as the "Pompeii of Japan" a reference to the Roman city near modern-day Naples buried by the eruption of Mount Vesuvius in 79 AD.

The body is clad in a relatively sophisticated kind of armour made by craftsmen who bound small iron plates with thin leather strips, which would have represented the latest technological import from the Korean Peninsula.

It may have been brought to Japan after the practice of horse riding was introduced in the late fifth century, Ohki said, adding that the armour was much more sophisticated than the single-plate type common in the period.

"It indicates the person wearing it was someone of a high position, like a regional leader," Ohki told AFP, adding studies would be carried out to see if the man was related to occupants of ancient tombs dotting the region.

Archaeologists will also examine the bones to determine whether the man and the child were related.

"If possible, we would like to study their DNA. Were they related? Why and how did they die there?" Ohki said.

- AFP/al

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India lost $123 billion in black money in a decade

WASHINGTON: The Indian economy suffered $1.6 billion in illicit financial outflows in 2010, capping-off a decade in which it experienced black money losses of $123 billion, according to a new report.

India is ranked as the decade's 8th largest victim of illicit capital flight behind China, Mexico, Malaysia, Saudi Arabia, Russia, the Philippines, and Nigeria, respectively in the report by Global Financial Integrity, a Washington-based research and advocacy organization.

Titled "Illicit Financial Flows from Developing Countries: 2001-2010," the report found that all developing and emerging economies suffered $858.8 billion in illicit outflows in 2010, just below the all-time high of $871.3 billion set in 2008-the year preceding the global financial crisis.

"While progress has been made in recent years, India continues to lose a large amount of wealth in illicit financial outflows," said GFI director Raymond Baker.

"Much focus has been paid in the media on recovering the Indian black money that has already been lost," he said suggesting policymakers should instead make curtailing the ongoing outflow of money priority number one.

"$123 billion is a massive amount of money for the Indian economy to lose," said Dev Kar, GFI lead economist and co-author of the report with GFI economist Sarah Freitas.

"It has very real consequences for Indian citizens. This is more than $100 billion dollars which could have been used to invest in education, healthcare, and upgrade the nation's infrastructure," he said.

A Nov 2010 GFI report, "The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008," found that the Indian economy lost $462 billion to illicit financial outflows from 1948 through 2008.

Authored by Kar, the report measured India's underground economy as 50 percent of GDP, with cumulative illicit outflows accounting for an increasing share of the total underground economy.

The new GFI study also estimates the developing world lost a total of $5.86 trillion to illicit outflows over the decade spanning 2001 through 2010.

The $858.8 billion of illicit outflows lost to all developing countries in 2010 is a significant uptick from 2009, which saw developing nations lose $776.0 billion.

GFI advocated that world leaders increase the transparency in the international financial system as a means to curtail the illicit flow of money highlighted by Kar and Freitas' research.

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Experts: No link between Asperger's, violence

NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.

Asperger's is a mild form of autism often characterized by social awkwardness.

"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.

Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.

A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.

High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.

Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.

"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.

"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.

Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.

Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.

"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.

She said those with Asperger's tend to focus on rules and be very law-abiding.

"There's something more to this," she said. "We just don't know what that is yet."

After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.

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AP Writer Matt Apuzzo contributed to this report.

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Online:

Asperger's information: http://1.usa.gov/3tGSp5

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Conn. Kids Laid to Rest: 'Our Hearts Are With You'

Visibly shaken attendees exiting the funeral today for 6-year-old Noah Pozner, one of 20 children killed in the Connecticut school massacre last week, said they were touched by a story that summed up the first-grader best.

His mother, Veronique, would often tell him how much she loved him and he'd respond: "Not as much as I [love] you," said a New York man who attended the funeral but was not a member of the family.

Noah's family had been scheduled to greet the public before the funeral service began at 1 p.m. at the Abraham L. Green & Son Funeral Home in Fairfield, Conn. The burial was to follow at the B'nai Israel Cemetery in Monroe, Conn. Those present said they were in awe at the composure of Noah's mother.

Rabbi Edgar Gluck, who attended the service, said the first person to speak was Noah's mother, who told mourners that her son's ambition when he grew up was to be either a director of a plant that makes tacos -- because that was his favorite food -- or to be a doctor.

Outside the funeral home, a small memorial lay with a sign reading: "Our hearts are with you, Noah." A red rose was also left behind along with two teddy bears with white flowers and a blue toy car with a note saying "Noah, rest in peace."

CLICK HERE for complete coverage of the tragedy at Sandy Hook.

Don Emmert/AFP/Getty Images

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The funeral home was adorned with white balloons as members of the surrounding communities came also to pay their respects, which included a rabbi from Bridgeport. More than a dozen police officers were at the front of the funeral home, and an ambulance was on standby at a gas station at the corner.

U.S. Sen. Richard Blumenthal, U.S. Rep. and Sen.-Elect Chris Murphy and Gov. Dannel P. Malloy, all of Connecticut, were in attendance, the Connecticut Post reported.

Noah was an inquisitive boy who liked to figure out how things worked mechanically, The Associated Press reported. His twin sister, Arielle, was one of the students who survived when her teacher hid her class in the bathroom during the attack.

CLICK HERE for a tribute to the shooting victims.

The twins celebrated their sixth birthday last month. Noah's uncle Alexis Haller told the AP that he was "smart as a whip," gentle but with a rambunctious streak. He called his twin sister his best friend.

"They were always playing together, they loved to do things together," Haller said.

The funeral for Jack Pinto, 6, was also held today, at the Honan Funeral Home in Newtown. He was to be buried at Newtown Village Cemetery.

Jack's family said he loved football, skiing, wrestling and reading, and he also loved his school. Friends from his wrestling team attended his funeral today in their uniforms. One mourner said the message during the service was: "You're secure now. The worst is over."

Family members say they are not dwelling on his death, but instead on the gift of his life that they will cherish.

The family released a statement, saying, Jack was an "inspiration to all those who knew him."

"He had a wide smile that would simply light up the room and while we are all uncertain as to how we will ever cope without him, we choose to remember and celebrate his life," the statement said. "Not dwelling on the loss but instead on the gift that we were given and will forever cherish in our hearts forever."

Jack and Noah were two of 20 children killed Friday morning at Sandy Hook Elementary School in Newtown, Conn., when 20-year-old Adam Lanza sprayed two first-grade classrooms with bullets that also killed six adults.

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Syrian rebels take control of Damascus Palestinian camp

BEIRUT (Reuters) - Syrian rebels took full control of the Yarmouk Palestinian refugee camp on Monday after fighting raged for days in the district on the southern edge of President Bashar al-Assad's Damascus powerbase, rebel and Palestinian sources said.

The battle had pitted rebels, backed by some Palestinians, against Palestinian fighters of the pro-Assad Popular Front for the Liberation of Palestine-General Command (PFLP-GC). Many PFLP-GC fighters defected to the rebel side and their leader Ahmed Jibril left the camp two days ago, rebel sources said.

"All of the camp is under the control of the (rebel) Free Syrian Army," said a Palestinian activist in Yarmouk. He said clashes had stopped and the remaining PFLP fighters retreated to join Assad's forces massed on the northern edge of the camp.

The battle in Yarmouk is one of a series of conflicts on the southern fringes of Assad's capital, as rebels try to choke the power of the 47-year-old leader after a 21-month-old uprising in which 40,000 people have been killed.

Government forces have used jets and artillery to try to dislodge the fighters but the violence has crept into the heart of the city and activists say rebels overran three army stations in a new offensive in the central province of Hama on Monday.

On the border with Lebanon, hundreds of Palestinian families fled across the frontier following the weekend violence in Yarmouk, a Reuters witness said.

Syria hosts half a million Palestinian refugees, most living in Yarmouk, descendants of those admitted after the creation of Israel in 1948, and has always cast itself as a champion of the Palestinian struggle, sponsoring several guerrilla factions.

Both Assad's government and the mainly Sunni Muslim Syrian rebels have enlisted and armed divided Palestinian factions as the uprising has developed into a civil war.

"NEITHER SIDE CAN WIN"

Syrian Vice President Farouq al-Sharaa said in a newspaper interview published on Monday that neither Assad's forces nor rebels seeking to overthrow him can win the war.

Sharaa, a Sunni Muslim in a power structure dominated by Assad's Alawite minority, has rarely been seen since the revolt erupted in March 2011 and is not part of the president's inner circle directing the fight against Sunni rebels. But he is the most prominent figure to say in public that Assad will not win.

Sharaa said the situation in Syria was deteriorating and a "historic settlement" was needed to end the conflict, involving regional powers and the U.N. Security Council and the formation of a national unity government "with broad powers".

"With every passing day the political and military solutions are becoming more distant. We should be in a position defending the existence of Syria. We are not in a battle for an individual or a regime," Sharaa was quoted as telling Al-Akhbar newspaper.

"The opposition cannot decisively settle the battle and what the security forces and army units are doing will not achieve a decisive settlement," he said, adding that insurgents fighting to topple Syria's leadership could plunge it into "anarchy and an unending spiral of violence".

Sources close to the Syrian government say Sharaa had pushed for dialogue with the opposition and objected to the military response to an uprising that began peacefully.

In a veiled criticism of the crackdown, he said there was a difference between the state's duty to provide security to its citizens, and "pursuing a security solution to the crisis".

He said even Assad could not be certain where events in Syria were leading, but that anyone who met him would hear that "this is a long struggle...and he does not hide his desire to settle matters militarily to reach a final solution."

In Hama province, rebels and the army clashed in a new campaign launched on Sunday by rebels to block off the country's north, activists said.

The Syrian Observatory for Human Rights, an opposition-linked violence monitor, said fighting raged through the provincial towns of Karnaz, Kafar Weeta, Halfayeh and Mahardeh.

It said there were no clashes reported in Hama city, which lies on the main north-south highway connecting the capital with Aleppo, Syria's second city.

Qassem Saadeddine, a member of the newly established rebel military command, said on Sunday fighters had been ordered to surround and attack army positions across the province. He said Assad's forces were given 48 hours to surrender or be killed.

In 1982 Hafez al-Assad, father of the current ruler, crushed an uprising in Hama city, killing up to 30,000 civilians.

Qatiba al-Naasan, a rebel from Hama, said the offensive would bring retaliatory air strikes from the government but that the situation is "already getting miserable".

(Additional reporting by Oliver Holmes, Erika Solomon and Dominic Evans in Beirut, Afif Diab at Masnaa, Lebanon; editing by Philippa Fletcher)

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