Senate Republican: Pentagon overstating forced cuts

Sen. John Cornyn of Texas said the overall amount of defense spending will actually still rise despite the cuts.

STORY HIGHLIGHTS

• Texas senator believes cuts may not be as bad for defense as the Pentagon says


• John Cornyn could face criticism from fellow Republicans with GOP strong on defense


• Pentagon would absorb half of the automatic, government-wide spending cuts


• Cuts due to take effect on Friday absent congressional action to avert them

Washington (CNN) -- Anticipating possible political backlash if forced federal spending cuts kick in as expected later this week, the Senate's No. 2 Republican said Monday that he is preparing a message he plans to hit hard: The cuts are not going to have as negative an impact as the Pentagon and others in the Obama administration are saying.

Sen. John Cornyn of Texas said he plans to make the case to other Republicans and the public that despite warnings from the Pentagon that the mandated cuts will be devastating, the overall amount of defense spending will actually still rise.

Cornyn conceded that until now he had been parroting what Defense Secretary Leon Panetta continuously warns -- that automatic, government-wide cuts could jeopardize national security.

But the veteran senator said he looked into it and will now argue that even if the cuts go through on March 1, the Pentagon will still see its budget go up.

Cornyn's preview of what he hopes will be a Senate GOP argument is significant since defense cuts are usually something Republicans adamantly oppose. He will surely run up against some in his party who strongly disagree.

To be sure, Cornyn called himself a defense "hawk" and did say the role of the federal government should be first and foremost to protect American citizens.

But he also believes that the deficit should be paramount since the United States has ended its fighting in Iraq and is winding down the war in Afghanistan.

He added that if "God forbid" another 9/11 happens, Congress would act.

Still, Senate Republicans are considering a proposal this week that could alleviate some impacts of the cuts by giving the president flexibility to decide where they would occur.

However, GOP sources tell CNN that Republicans have not yet worked out among themselves whether their measure would give the president that flexibility on all domestic agencies and programs or just on defense.

GOP sources say they are likely to work that out when Senate Republicans huddle for their regular lunch on Tuesday.

The $85 billion in forced spending cuts were written into law intentionally to be indiscriminate.

The law does not allow, for example, the Pentagon to keep funding going for a ship building program by shifting money being spent on a military golf course. And it does not allow the Health and Human Services Department to keep children in Head Start programs by cutting deeper in another agency.

Part of the reason Senate GOP leaders have not decided yet how broad that flexibility should be -- whether it should apply just to the defense cuts, as many Republicans want, or to domestic cuts as well — is due to differences in opinion among Republicans over how much power to give the president.

But it is a key decision, since granting the president flexibility in cuts across the board could make it hard for conservative Democrats, such as those from defense industry-rich Virginia, to oppose.

That's because such an approach could soften the political burden for those Democrats who would be able to argue to their constituents they did everything possible -- including providing flexibility to the White House -- if economic damage ripples through their states.

But one influential Republican senator told CNN on Sunday that he opposes giving the president so much flexibility because it undermines the decision-making authority of Congress.

"I say to my Republican friends, if you want to give the president flexibility as to how to exact these cuts in defense spending, then why don't we go home and just give him the money? I am totally opposed to that," Sen. John McCain, R-Arizona, said on CNN's "State of the Union." "We spent too long on defense authorization and finding out what this country needs to secure this country without saying, 'Hey, well we'll just let the president have the, quote, flexibility.'"

A competing Senate Democratic proposal would replace the automatic spending cuts with a mix of tax increases on wealthier Americans and more targeted spending reductions than those currently required. Democratic leaders believe it will get more than 50 votes -- so they will be able to claim it won a majority in the chamber -- but will fall short of the 60 it would need to win Senate approval.

In the meantime, both sides are preparing for no change -- and for forced spending cuts to take effect Friday.

Democratic leadership sources admit that whether or not they can ultimately do anything to change the way across-the-board cuts are enacted will depend on the level of public outcry -- and media coverage.

Democrats admit the impact may not be felt for at least a month, maybe more.

Assuming no legislation is passed to alter the cuts this week, sources in both parties say they are already looking ahead to the next big deadline on March 27, when the funding for the government runs out.

A Democratic congressional source tells CNN that at this point, Democrats do not believe the White House wants to use that debate to revisit forced spending cuts, but the source said that could change depending on public reaction to the cuts.

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Gaza militants fire rocket into Israel, police there say

JERUSALEM Israeli police say a rocket has been fired from the Gaza Strip into Israel. A police spokesman says there was damage to a road but no injuries.

It's the first such rocket from the Palestinian territory to land in Israel since Israeli-Gaza fighting last November.

Police spokesman Micky Rosenfeld says the remains of a rocket were found on Tuesday near the city of Ashkelon, in southern Israel.

There have been protests throughout the West Bank in recent days in support of Palestinians held in Israeli jails. This weekend, Palestinian prisoner Arafat Jaradat, 30, died under disputed circumstances, prompting more protests.

A statement from the Palestinian president's office says President Mahmoud Abbas has instructed Palestinian security officials to preserve order in the West Bank, but he blames Israel for the violence.

Thousands attended Jaradat's funeral procession in the West Bank of Hebron, Monday.

Palestinian officials say autopsy results show Jaradat was tortured by Israeli interrogators, while Israeli officials say there's no conclusive cause of death yet and that more tests are needed.

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Americans Targeted for Allegedly Running Underage Prostitution in Philippines

Arthur Benjamin is sitting at the edge of a small stage, wearing a lavender Hawaiian shirt and nursing a bottle of San Miguel Light beer. The 6-foot-6 mustachioed Texan lazily watches the half dozen or so girls dancing rather unenergetically around the stage's pole.

"I forgot your gift again, it's in the car," Benjamin says to one of the girls on stage, shouting above the pop music blaring from the speaker system.

The small, dingy bar, which Benjamin says he owns, is called Crow Bar. It's in a rundown part of the picturesque Subic Bay in the western Philippines, about a three hour drive from the capital, Manila. Home for 50 years to a United States naval base, Subic Bay has become synonymous with foreigners looking for sex in the long string of bars that line the main road along the coast.

Watch the full story on "Nightline" TONIGHT at 12:35 a.m. ET

The bars in this area are often packed with older foreign men ogling the young Filipina women available for the night for a "bar fine" of around 1,500 Filipino pesos, or just over $35. Many of the bars are owned and operated by Americans, often former military servicemen who either served on the base or whose ships docked here until the base was shuttered under political pressure in 1992.

Most of the prostitutes working in the bars are indeed 18 or older. But in the Philippines, just a small scratch to the surface can reveal a layer of young, underage girls who have mostly come from impoverished rural provinces to sell their bodies to help support their families.

Benjamin, 49, is, according to his own statements, one of the countless foreigners who has moved beyond just having sex with underage girls to owning and operating a bar where girls in scantily-clad outfits flaunt their bodies for patrons.

"My wife recently found out that I have this place," he tells an ABC News "Nightline" team, unaware they are journalists and recording the conversation on tiny hidden cameras disguised as shirt buttons.

Benjamin said that a "disgruntled waitress" had written his wife on Facebook, detailing his activities in Subic Bay.

"She sent her this thing saying that I have underage girls who stayed with me, that I [have anal sex with them], I own a bar, I've got other girls that I'm putting through high school, all this other crap," he said.

"All of which is true," he laughed. "However, I have to deny."

He sends a text message summoning his current girlfriend, a petite dark-skinned girl called Jade, who he said is just 16 years old. Benjamin says he bought the bar for her about a year ago and while most still call it Crow Bar, he officially re-named it with her last name.

"She needed a place to stay, I needed a place to do her. I bought a bar for her," he says, explaining that she lives in a house out back by the beach.

"You're not going to find anything like this in the States, not as a guy my age," he said as he looked down at Jade. "Ain't going to happen."

Benjamin is the latest target of Father Shay Cullen, a Catholic priest with a thick Irish brogue and fluency in the local language, Tagalog. Through his non-profit center called Preda, he's been crusading against underage sex trafficking in the Philippines for 40 years.

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Ancient continent hides beneath Indian Ocean

The sands of Mauritius are hiding a secret: deep beneath them lurks an ancient continent.

Trond Torsvik and colleagues at the University of Oslo, Norway, analysed grains of zircon found on the island's beaches, measuring the balance of lead and uranium isotopes to work out their age. This showed some formed almost 2 billion years ago – although the volcanic island is no more than 65 million years old.

So where did the grains come from? Torsvik thinks they are from fragments of continental crust beneath Mauritius that melted as the volcanic island formed. The team have named the proposed continent Mauritia.

It's a reasonable idea, says Michael Wysession at Washington University in St. Louis, Missouri. "It's hard to imagine how zircons could be there any other way."

Journal reference: Nature Geoscience, DOI: 10.1038/ngeo1736

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Putin signs law banning smoking in public places

 

MOSCOW: President Vladimir Putin signed a law banning smoking in public places in Russia from June, a cornerstone of the government's bid to improve public health, the Kremlin said Monday.

The law, called "On protecting the health of citizens from the danger of passive smoking and the consequences of the use of tabacco," makes smoking illegal in restaurants, cafes, hotels, trains and a host of other places.

-AFP/sb

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South Korea swears in first woman president

STORY HIGHLIGHTS

• The inauguration of Park Geun-hye is held in Seoul, South Korea


• Park becomes the East Asian nation's first female president


• Her father was Park Chung-hee, who ruled South Korea from 1961 to 1979


• She's vowed a softer approach to North Korea, hoping to build a "zone of trust"

(CNN) -- Park Geun-hye made history Monday by becoming South Korea's first female president, pledging to secure South Korea against the threat of an increasingly hostile North Korea at the same time as mending bridges with Pyongyang.

"North Korea's recent nuclear test is a challenge to the survival and future of the Korean people, and there should be no mistake that the biggest victim will be none other than North Korea itself," she said. "I urge North Korea to abandon its nuclear ambitions without delay and embark on the path to peace and shared development."

Reiterating her policy of 'trustpolitik' - a policy based on deterrence combined with cautious approaches to North Korea - she said she intended to "lay the groundwork for an era of harmonious unification where all Koreans can lead more prosperous and freer lives and where their dreams can come true."

"I will move forward step-by-step on the basis of credible deterrence to build trust between the South and the North."

She said South Koreans stood at a new juncture, confronting the difficulties of the global financial crisis as well as the threat from the North.

"I will usher in a new era of hope whereby the happiness of each citizen becomes the bedrock of our nation's strength which in turn is shared by and benefits all Koreans," she said.

When she was elected last December, Park broke barriers in the patriarchal East Asian nation, though she is deeply connected to its past. Her father, Park Chung-hee, was one of the founders of modern Korea who took power after a coup d'etat and ruled heavy-handedly for 18 years before being shot dead by his intelligence chief in 1979.

Read more: Park faces tough challenges

His memory still divides South Korea -- some regard him as the cornerstone of South Korea's present prosperity, others see him as a dictator who ignored human rights and crushed dissent.

Although she has apologized for human rights violations during his rule, Park has been criticized for not doing enough to distance herself from his legacy.

Still, any concerns about her family's past weren't enough to prevent 52% of voters from elevating her to the presidency.

Park, 61, and her opponent, the Democratic United Party's Moon Jae-in, offered similarly moderate plans during the campaign, addressing income inequality, reining in the power of family-owned conglomerates and improving relations with North Korea.

On North Korea, Park distinguished herself from former President Lee Myung-bak, who demanded an end to Pyongyang's nuclear arms program as a condition of economic aid, by offering a softer, carrot-and-stick approach.

I will move forward step-by-step on the basis of credible deterrence to build trust between the South and the North
Park Geun-hye

She visited the North Korean capital in 2002 and met with its late leader Kim Jong Il. Since then, his son Kim Jong Un has taken over in Pyongyang, continuing a policy of defiant work on the country's budding nuclear program, including a test earlier this month that drew widespread international condemnation.

"Precisely because trust is at a low point these days, South Korea has a chance to rebuild it," Park told Foreign Affairs magazine before she won the election. "In order to transform the Korean Peninsula from a zone of conflict into a zone of trust, South Korea has to adopt a policy of 'trustpolitik,' establishing mutually binding expectations based on global norms."

Domestically, Park campaigned as a fiscal conservative, advocating tax cuts for business to boost investment and jobs and vowing to restructure welfare programs. At the same time, she promised soon after winning election "to take care of our people one by one."

In a speech at the headquarters of her Saenuri political party Thursday morning, she invoked a phrase coined by her father, who also served as president in an era when he was encouraging people to pull South Korea out of poverty.

"I would like to re-create the miracle of 'let's live well' so people can worry less about their livelihood and young people can happily go to work," Park said.

CNN's Greg Botelho and Peter Shadbolt contributed to this report.

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Michelle Obama makes surprise Oscars appearance

First lady Michelle Obama, on a video screen, announces the winner for best picture along with actor Jack Nicholson at the 85th annual Academy Awards on Feb. 24, 2013, in Hollywood, Calif. / Getty

First lady Michelle Obama made a surprise appearance at the Oscars, opening the envelope that contained the name of the best-picture winner, "Argo."

51 Photos

Oscars 2013: Show highlights

Appearing via streaming video from the White House, Mrs. Obama said all of the nominees demonstrated that "we can overcome any obstacle."

15 Photos

Oscars 2013: Press room

She said that message is "especially important for our young people" and thanked Hollywood for encouraging children "to open their imaginations."

The first lady was introduced by Jack Nicholson, who noted that the best picture trophy is usually announced solo.

Mrs. Obama wore a silver, art deco-inspired gown by Indian-born American fashion designer Naeem Khan. It was the same dress she wore for the Obamas' dinner with the nation's governors at the White House on Sunday night.

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Oscars 2013: 'Argo' Wins Best Picture

"Argo" took home the top prize as best picture at the Oscars Sunday night, with first lady Michelle Obama announcing the winner from the White House.

"You directed a hell of a film," co-producer Grant Heslov told director and fellow producer Ben Affleck. "I couldn't be more proud of the film and more proud of our director."

Affleck was snubbed in the directing category but humbly accepted the best picture Oscar as one of the three producers on the film. George Clooney was the third.

Affleck thanked Stephen Spielberg and the other best picture nominees and his wife Jennifer Garner for "working on our marriage."

"It's good, it's work," he said, adding, "but there's no one I'd rather work with."

For Full List of Winners

Acknowledging his last Oscar win, as a screenwriter for "Good Will Hunting," Affleck said, "I was really just a kid. I never thought I would be back here."

In the acting categories, Daniel Day-Lewis won the Oscar for best actor, being the first actor to three-peat in that category. As he accepted the award from Hollywood's greatest actress, Meryl Streep, he joked, "I had actually been committed to play Margaret Thatcher. ... Meryl was Stephen's first choice for Lincoln."

He also thanked his wife, Rebecca Miller, for "living with some very strange men," with each new role that he takes on.

"She's the versatile one in the family and she's been the perfect companion to all of them," he said.

Kevin Winter/Getty Images

Jennifer Lewis won the award for best actress. She tripped on the stairs on her way to accepting her award but picked herself up and made her way to the stage, earning a standing ovation.

"You're just standing up because you feel bad that I fell and that's embarrassing," she said, before rattling off a list of thank-yous and leaving the stage looking slightly stunned.

Watch Jennifer Lawrence's Oscar Tumble

"Life of Pi," which had a total of 11 nominations, was another big winner of the night. Director Ang Lee took home the Oscar for best director over Stephen Spielberg and David O. Russell.

"Thank you, movie god," Lee said, accepting his award.

As expected, the film took home the first technical awards of the night for cinematography and visual effects. "Life of Pi" also won for best original score.

The first big acting awards of the night went to Christoph Waltz and Anne Hathaway in the supporting actor categories.

In one of the biggest tossups, Waltz claimed the award for supporting actor for his role in "Django Unchained." It was his second Oscar for a Quentin Tarantino film; his first was for Tarantino's "Inglourious Basterds."

PHOTOS: Stars on the Red Carpet

As expected, Hathaway took home the award for best supporting actress for her role as Fantine in "Les Miserables."

"It came true," she said, launching into a breathy speech, in which she thanked the cast and crew, her team and her husband. "The greatest moment of my life was when you walked into it," she said.

Quentin Tarantino won the Oscar for best original screenplay for his slave revenge western "Django Unchained." He thanked his cast.

"I have to cast the right people," he said. "And boy this time did I do it."

Chris Terrio won the award for best adapted screenplay for "Argo," which also won for film editing.

For only the sixth time in Academy history, there was a tie at the Oscars. "Zero Dark Thirty" and "Skyfall" tied for sound editing.

See Other Ties in Academy History

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Amazon to open market in second-hand MP3s and e-books

A new market for second-hand digital downloads could let us hold virtual yard sales of our ever-growing piles of intangible possessions

WHY buy second-hand? For physical goods, the appeal is in the price – you don't mind the creases in a book or rust spots on a car if it's a bargain. Although digital objects never lose their good-as-new lustre, their very nature means there is still uncertainty about whether we actually own them in the first place, making it tricky to set up a second-hand market. Now an Amazon patent for a system to support reselling digital purchases could change that.

Amazon's move comes after last year's European Union ruling that software vendors cannot stop customers from reselling their products. But without technical support, the ruling has had no impact. In Amazon's system, customers will keep their digital purchases – such as e-books or music – in a personal data store in the cloud that only they can access, allowing them to stream or download the content.

This part is like any cloud-based digital locker except that the customer can resell previous purchases by passing the access rights to another person. Once the transaction is complete, the seller will lose access to the content. Any system for reselling an e-book, for example, would have to ensure that it is not duplicated in the transaction. That means deleting any copies the seller may have lying around on hard drives, e-book readers, and other cloud services, since that would violate copyright.

Amazon may be the biggest company to consider a second-hand market, but it is not the first. ReDigi, based in Boston, has been running a resale market for digital goods since 2011. After downloading an app, users can buy a song on ReDigi for as little as 49 cents that would costs 99 cents new on iTunes.

When users want to sell an item, they upload it to ReDigi's servers via a mechanism that ensures no copy is made during the transfer. Software checks that the seller does not retain a copy. Once transferred, the item can be bought and downloaded by another customer. ReDigi is set to launch in Europe in a few months.

Digital items on ReDigi are cheaper because they are one-offs. If your hard drive crashes and you lose your iTunes collection you can download it again. But you can only download an item from ReDigi once – there is no other copy. That is the trade-off that makes a second-hand digital market work: the risk justifies the price. The idea has ruffled a few feathers – last year EMI sued ReDigi for infringement of copyright. A judge denied the claim, but the case continues.

Used digital goods can also come with added charm. ReDigi tracks the history of the items traded so when you buy something, you can see who has owned it and when. ReDigi's second-hand marketplace has grown into a social network. According to ReDigi founder John Ossenmacher, customers like seeing who has previously listened to a song. "It's got soul like an old guitar," he says. "We've introduced this whole feeling of connectedness."

It could be good for business too if the original vendors, such as iTunes, were to support resale and take a cut of the resell price. Nevertheless, Amazon's move bucks the industry trend. Microsoft's new Xbox, for example, is expected not to work with second-hand games.

But the market could change rapidly now that Amazon's weight is behind this, says Ossenmacher. "The industry is waking up."

This article appeared in print under the headline "Old MP3, one careful owner"

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Apple, Samsung face onslaught at mobile fair

BARCELONA - Chinese handset makers will lead an onslaught on smartphone titans Samsung and Apple when the world's biggest mobile fair opens on Monday in Barcelona, Spain.

Offering big-screen, slick, slim smartphones at lower prices, Chinese manufacturers Huawei, ZTE and Lenovo will leverage the Mobile World Congress to chip away at the mighty duopoly, analysts say.

The handset battle is part of a broader revolt against a handful of companies with a stranglehold on the booming industry's handsets, operating systems and microchips, they say.

Apple, as usual, is steering clear of the February 25-28 congress that draws 1,500 exhibitors to this Mediterranean city in northeastern Spain, and Samsung is not expected to launch its next big offer, the Galaxy S4, until some time after the show.

That may leave the field clear for rivals to tout their ambitions for a slice of the smartphone market, which is set to grow to a record one billion handset shipments in 2013, according to a forecast by global consultancy Deloitte.

"I think we will see challengers trying to make noise at the Mobile World Congress this year," said Ian Fogg, London-based senior mobile analyst at research house IHS.

New players face a daunting task, though.

Samsung and Apple accounted for more than half of all smartphone sales in the final quarter of 2012 -- 29.0 percent for Samsung and 22.1 percent for Apple -- according to research firm Strategy Analytics.

Behind Samsung and Apple, however, Chinese firms held the third, fourth and fifth spots -- with 5.3 percent for Huawei, 4.7 percent for ZTE and 4.4 percent for Lenovo.

Demand for smartphones in developing countries could give Chinese firms a bigger opening, said Magnus Rehle, senior partner at telecommunications management consultancy group Greenwich Consulting.

"Hundreds of millions of Africans and Indians and Asians want to have a smartphone and so far the blocking point has been the price," said Rehle, speaking from Ghana.

Now the Chinese firms were offering attractive smartphones at lower prices, he said.

"I think they will be quite successful in grabbing the new market outside of Europe and the US, and that is where the growth is," Rehle said.

An even mightier duopoly holds sway over the operating system software that makes the smartphones work.

Google's Android ran 69 percent of all handsets sold last year and Apple's iOS 22 percent, said a study by independent analytical house Canalys.

Yet they face challengers, too, including Mozilla's new open-sourced Firefox OS, backed by an array of mobile phone operators.

Microsoft's new Windows Mobile operating system is struggling, however.

"The number of apps that is available is one thing that is blocking Windows from being successful," Rehle said.

"They have had problems and everybody is hoping this will change because the duopoly is maybe not good for the market."

Firefox could face similar difficulties, he predicted.

A battle has broken out, too, over the processor chips that run the smartphones.

Santa Clara, California-based Intel is offering new high-performance chips to break its way into smartphones, of which almost all now use chip technology licensed by ARM, based in Cambridge, England.

Chinese group Lenovo, for example, is launching a new handset, the IdeaPhone K900, just 6.9mm thick with a 5.5-inch high definition screen, which contains an Intel Clover Trail processor.

The potential rewards for Intel could be rich: the market in processor chips for smartphone applications was worth nearly seven billion euros (US$9 billion) last year, said Francis Sideco, communications technology analyst at IHS.

Despite robust growth in smartphones and tablet sales, however, the mobile industry still faces a major challenge moving customers over to new ultrafast fourth generation, or 4G, networks, which can offer speeds similar to a fixed fibre-optic connection.

"There are 3G networks in many parts of the world like in Sweden that have been overcrowded and then you have parallel 4G networks that are almost empty," said Greenwich Consulting's Rehle.

Network operators need to convince their customers to pay a little more for the faster speeds, he said, pointing to videos as the "killer application" to lure people to the system over the longer term.

If the operators succeed, they can make more money and invest in greater capacity, the analyst said.

"Otherwise, they will have problems."

- AFP/ir

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