Foreigners still trapped in Sahara hostage crisis

ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were captive or missing inside a desert gas plant on Saturday, nearly two days after the Algerian army launched an assault to free them that saw many hostages killed.

The standoff between the army and al Qaeda-linked gunmen - one of the biggest international hostage crises in decades - entered its fourth day, having thrust Saharan militancy to the top of the global agenda.

The number and fate of victims has yet to be confirmed, with the Algerian government keeping officials from Western countries far from the site where their countrymen were in peril.

Reports put the number of hostages killed at between 12 to 30, with possibly dozens of foreigners still unaccounted for - among them Norwegians, Japanese, Britons, Americans and others.

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

On Saturday, the Algerian military was holding the vast residential barracks at the In Amenas gas processing plant, while gunmen were holed up in the industrial plant itself with an undisclosed number of hostages, making it difficult for Algerian special forces to intervene.

The army is surrounding the plant, and helicopters are monitoring the area, Algerian state radio said, quoting a reporter in the city of In Amenas.

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

Hundreds escaped on Thursday when the army launched an operation, but many hostages were killed in the assault. Algerian forces destroyed four trucks holding hostages, according to the family of a Northern Irish engineer who escaped from a fifth truck and survived.

Leaders of Britain, Japan and other countries have expressed frustration that the assault was ordered without consultation and officials have grumbled at the lack of information. Many countries also withheld details about their missing citizens to avoid releasing information that might aid the captors.

An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.

Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.

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

Norway says eight Norwegians are still missing. JGC said it was missing 10 staff. Britain and the United States have said they have citizens unaccounted for but have not said how many.

The Algerian security source said 100 foreigners had been freed but 32 were still unaccounted for.

"We must be prepared for bad news this weekend but we still have hope," Norwegian Prime Minister Jens Stoltenberg said.

A U.S. official said on Friday a U.S. flight carrying wounded people from many countries had left Algeria, without giving further details.

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

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

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

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

MULTINATIONAL INSURGENCY

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

A French hostage employed by a French catering company said he had hidden in his room for 40 hours under the bed before he was rescued by Algerian troops, relying on Algerian employees to smuggle him food with a password.

"I put boards up pretty much all round," Alexandre Berceaux told Europe 1 radio. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

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

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

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

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

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year, prompting the French intervention in that poor African former colony.

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

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

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

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London, Padraic Halpin and Conor Humphries in Dublin, Andrew Quinn and David Alexander in Washington; Editing by Giles Elgood)

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Chinese, U.S. data push global shares to twenty-month high

LONDON (Reuters) - World shares hit a 20-month high on Friday as encouraging data from the United States and China boosted prospects for the global economy, while the yen hit new lows ahead of next week's Bank of Japan meeting.

China's economy grew at a slightly faster-than-expected 7.9 percent in the fourth quarter of 2012, the latest sign it is pulling out of a post-global financial crisis slowdown that produced its weakest year of economic growth since 1999.

The positive news came on top of strong U.S. labor and housing market reports on Thursday, providing fresh impetus to a recent strong and broad financial market rally.

MSCI's index of leading world shares <.miwd00000pus> was at it highest level since May 2011 at 551.90 points as trading got underway in Europe and after Tokyo and Hong Kong stock markets surged and the S&P 500 in New York hit a five-year high.

"We've got good numbers out of China, we had some good numbers out of U.S. yesterday ... The general sentiment is pretty good," said Neil Marsh, strategist at Newedge.

"There will probably be some phases of consolidation as we go forward, but the markets remain pretty resilient. More people are putting their cash to work now in riskier assets like equities, and there is no sign of that stopping at the minute."

European stocks opened higher, with London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> up between 0.2 and 0.3 percent <.l><.eu><.n>. The region's data highlight of the day comes from British retail figures.

Industrial commodities jumped, leaving platinum and palladium near multi-month highs hit on Thursday, while oil prices edged up, with U.S. crude up 0.1 percent at $95.61 a barrel and Brent futures adding 0.2 percent to $111.27.

YEN SLIDE RESUMES

The strong U.S. data and mounting expectations for more aggressive easing by the Bank of Japan (BOJ) next week lifted the dollar to its highest since June 2010 of 90.21 yen, and the euro to its peak since May 2011 of 120.73 yen.

The single currency was steady against the dollar at $1.3378.

Expectations that the new Japanese government will pursue massive fiscal spending and push for more aggressive BOJ easing to drive Japan out of years of deflation and economic slump have spurred heavy yen selling since November.

Sources told Reuters the BOJ will at its January 21-22 meeting consider removing the 0.1 percent floor on short-term interest rates and commit to open-ended asset buying until the 2 percent inflation target is reached.

In bond markets, German two-year government bond yields rose 0.25 percent to near their highest in nearly 10 months, with traders citing growing concerns in money markets over early bank repayments of three-year European Central Bank loans.

Banks can start making repayments on January 30, and the ECB will publish how much will be repaid then on January 25. A larger-than-expected repayment of around 400 billion euros would effectively tighten conditions and push up interbank rates.

(Reporting by Marc Jones; Editing by Will Waterman)

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Armstrong admits doping: 'I'm a flawed character'

CHICAGO (AP) — He did it. He finally admitted it. Lance Armstrong doped.

He was light on the details and didn't name names. He mused that he might not have been caught if not for his comeback in 2009. And he was certain his "fate was sealed" when longtime friend, training partner and trusted lieutenant George Hincapie, who was along for the ride on all seven of Armstrong's Tour de France wins from 1999-2005, was forced to give him up to anti-doping authorities.

But right from the start and more than two dozen times during the first of a two-part interview Thursday night with Oprah Winfrey on her OWN network, the disgraced former cycling champion acknowledged what he had lied about repeatedly for years, and what had been one of the worst-kept secrets for the better part of a week: He was the ringleader of an elaborate doping scheme on a U.S. Postal Service team that swept him to the top of the podium at the Tour de France time after time.

"I'm a flawed character," he said.

Did it feel wrong?

"No," Armstrong replied. "Scary."

"Did you feel bad about it?" Winfrey pressed him.

"No," he said. "Even scarier."

"Did you feel in any way that you were cheating?"

"No," Armstrong paused. "Scariest."

"I went and looked up the definition of cheat," he added a moment later. "And the definition is to gain an advantage on a rival or foe. I didn't view it that way. I viewed it as a level playing field."

Wearing a blue blazer and open-neck shirt, Armstrong was direct and matter-of-fact, neither pained nor defensive. He looked straight ahead. There were no tears and very few laughs.

He dodged few questions and refused to implicate anyone else, even as he said it was humanly impossible to win seven straight Tours without doping.

"I'm not comfortable talking about other people," Armstrong said. "I don't want to accuse anybody."

Whether his televised confession will help or hurt Armstrong's bruised reputation and his already-tenuous defense in at least two pending lawsuits, and possibly a third, remains to be seen. Either way, a story that seemed too good to be true — cancer survivor returns to win one of sport's most grueling events seven times in a row — was revealed to be just that.

"This story was so perfect for so long. It's this myth, this perfect story, and it wasn't true," he said.

Winfrey got right to the point when the interview began, asking for yes-or-no answers to five questions.

Did Armstrong take banned substances? "Yes."

Did that include the blood-booster EPO? "Yes."

Did he do blood doping and use transfusions? "Yes."

Did he use testosterone, cortisone and human growth hormone? "Yes."

Did he take banned substances or blood dope in all his Tour wins? "Yes."

In his climb to the top, Armstrong cast aside teammates who questioned his tactics, yet swore he raced clean and tried to silence anyone who said otherwise. Ruthless and rich enough to settle any score, no place seemed beyond his reach — courtrooms, the court of public opinion, even along the roads of his sport's most prestigious race.

That relentless pursuit was one of the things that Armstrong said he regretted most.

"I deserve this," he said twice.

"It's a major flaw, and it's a guy who expected to get whatever he wanted and to control every outcome. And it's inexcusable. And when I say there are people who will hear this and never forgive me, I understand that. I do. ...

"That defiance, that attitude, that arrogance, you cannot deny it."

Armstrong said he started doping in mid-1990s but didn't when he finished third in his comeback attempt.

Anti-doping officials have said nothing short of a confession under oath — "not talking to a talk-show host," is how World Anti-Doping Agency director general David Howman put it — could prompt a reconsideration of Armstrong's lifetime ban from sanctioned events.

He's also had discussions with officials at the U.S. Anti-Doping Agency, whose 1,000-page report in October included testimony from nearly a dozen former teammates and led to stripping Armstrong of his Tour titles. Shortly after, he lost nearly all his endorsements, was forced to walk away from the Livestrong cancer charity he founded in 1997, and just this week was stripped of his bronze medal from the 2000 Olympics.

Armstrong could provide information that might get his ban reduced to eight years. By then, he would be 49. He returned to triathlons, where he began his professional career as a teenager, after retiring from cycling in 2011, and has told people he's desperate to get back.

Initial reaction from anti-doping officials ranged from hostile to cool.

WADA president John Fahey derided Armstrong's defense that he doped to create "a level playing field" as "a convenient way of justifying what he did — a fraud."

"He was wrong, he cheated and there was no excuse for what he did," Fahey said by telephone in Australia.

If Armstrong "was looking for redemption," Fahey added, "he didn't succeed in getting that."

USADA chief Travis Tygart, who pursued the case against Armstrong when others had stopped, said the cyclist's confession was just a start.

"Tonight, Lance Armstrong finally acknowledged that his cycling career was built on a powerful combination of doping and deceit," Tygart said. "His admission that he doped throughout his career is a small step in the right direction. But if he is sincere in his desire to correct his past mistakes, he will testify under oath about the full extent of his doping activities."

Livestrong issued a statement that said the charity was "disappointed by the news that Lance Armstrong misled people during and after his cycling career, including us."

"Earlier this week, Lance apologized to our staff and we accepted his apology in order to move on and chart a strong, independent course," it said.

The interview revealed very few details about Armstrong's performance-enhancing regimen that would surprise anti-doping officials.

What he called "my cocktail" contained the steroid testosterone and the blood-booster erythropoetein, or EPO, "but not a lot," Armstrong said. That was on top of blood-doping, which involved removing his own blood and weeks later re-injecting it into his system.

All of it was designed to build strength and endurance, but it became so routine that Armstrong described it as "like saying we have to have air in our tires or water in our bottles."

"That was, in my view, part of the job," he said.

Armstrong was evasive, or begged off entirely, when Winfrey tried to connect his use to others who aided or abetted the performance-enhancing scheme on the USPS team

When she asked him about Italian doctor Michele Ferrari, who was implicated in doping-related scrapes and has also been banned from cycling for life, Armstrong replied, "It's hard to talk about some of these things and not mention names. There are people in this story, they're good people and we've all made mistakes ... they're not monsters, not toxic and not evil, and I viewed Michele Ferrari as a good man and smart man and still do."

But that's nearly all Armstrong would say about the physician that some reports have suggested educated the cyclist about doping and looked after other aspects of his training program.

He was almost as reluctant to discuss claims by former teammates Tyler Hamilton and Floyd Landis that Armstrong told them, separately, that he tested positive during the 2001 Tour de Suisse and conspired with officials of the International Cycling Union officials to cover it up — in exchange for a donation.

"That story wasn't true. There was no positive test, no paying off of the labs. There was no secret meeting with the lab director," he said.

Winfrey pressed him again, asking if the money he donated wasn't part of a tit-for-tat agreement, "Why make it?"

"Because they asked me to," Armstrong began.

"This is impossible for me to answer and have anybody believe it," he said. "It was not in exchange for any cover-up. ... I have every incentive here to tell you yes."

Finally, he summed up the entire episode this way: "I was retired. ... They needed money."

Ultimately, though, it was Landis who did the most damage to Armstrong's story. Landis was stripped of the 2006 Tour title after testing positive and wound up on the sport's fringes looking for work. Armstrong said his former teammate threatened to release potentially destructive videos if he wasn't given a spot on the team. That was in 2009, when Armstrong returned to the Tour after four years off.

Winfrey asked whether Landis' decision to talk was "the tipping point."

"I'd agree with that. I might back it up a little and talk about the comeback. I think the comeback didn't sit well with Floyd," Armstrong recalled.

"Do you regret now coming back?"

"I do. We wouldn't be sitting here if I didn't come back," he said.

The closest Armstrong came to contrition was when Winfrey asked him about his apologies in recent days, notably to former teammate Frankie Andreu, who struggled to find work in cycling after Armstrong dropped him from the USPS team, as well as his wife, Betsy. Armstrong said she was jealous of his success, and invented stories about his doping as part of a long-running vendetta.

"Have you made peace?" Winfrey asked.

"No," Armstrong replied, "because they've been hurt too badly, and a 40-minute (phone) conversation isn't enough."

He also called London Sunday Times reporter David Walsh as well as Emma O'Reilly, who worked as a masseuse for the USPS team and later provided considerable material for a critical book Walsh wrote about Armstrong and his role in cycling's doping culture.

Armstrong subsequently sued for libel in Britain and won a $500,000 judgment against the newspaper, which is now suing to get the money back. Armstrong was, if anything, even more vicious in the way he went after O'Reilly. He intimated she was let go from the Postal team because she seemed more interested in personal relationships than professional ones.

"What do you want to say about Emma O'Reilly?" Winfrey asked.

"She, she's one of these people that I have to apologize to. She's one of these people that got run over, got bullied."

"You sued her?"

"To be honest, Oprah, we sued so many people I don't even," Armstrong said, then paused, "I'm sure we did."

Near the end of the first interview installment, Winfrey asked about a federal investigation of Armstrong that was dropped by the Justice Department without charges.

"When they dropped the case, did you think: 'Now, finally over, done, victory'?"

Armstrong looked up. He exhaled.

"It's hard to define victory," he said. "But I thought I was out of the woods."

___

AP Sports Writers Jim Vertuno in Austin, Texas, Eddie Pells in Denver and Dennis Passa in Melbourne contributed to this report.

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NASA, Europeans uniting to send spaceship to moon

CAPE CANAVERAL, Fla. (AP) — NASA is teaming up with the European Space Agency to get astronauts beyond Earth’s orbit.

Europe will provide the propulsion and power compartment for NASA’s new Orion crew capsule, officials said Wednesday. This so-called service module will be based on Europe’s supply ship used for the International Space Station.

Orion’s first trip is an unmanned mission in 2017. Any extra European parts will be incorporated in the first manned mission of Orion in 2021.

NASA’s human exploration chief, Bill Gerstenmaier, said both missions will be aimed at the vicinity of the moon. The exact details are being worked out; lunar fly-bys, rather than landings, are planned.

NASA wants to ultimately use the bell-shaped Orion spacecraft to carry astronauts to asteroids and Mars. International cooperation will be crucial for such endeavors, Gerstenmaier told reporters.

The United States has yet to establish a clear path forward for astronauts, 1½ years after NASA’s space shuttles stopped flying. The basic requirements for Orion spacecraft are well understood regardless of the destination, allowing work to proceed, Gerstenmaier said.

“You don’t design a car to just go to the grocery store,” he told reporters.

Getting to 2017 will be challenging, officials for both space programs acknowledged. Gerstenmaier said he’s not “100 percent comfortable” putting Europe in such a crucial role. “But I’m never 100 percent comfortable” with spaceflight, he noted. “We’ll see how it goes, but we’ve done it smartly.”

The space station helped build the foundation for this new effort, he said.

Former astronaut Thomas Reiter, Europe’s director of human spaceflight, said it makes sense for the initial Orion crew to include Europeans. For now, though, the focus is on the technical aspects, he said. NASA will supply no-longer-used space shuttle engines for use on the service modules.

Reiter put the total European contribution at nearly $ 600 million.

Orion originally was part of NASA’s Constellation program that envisioned moon bases in the post-shuttle era. President Barack Obama canceled Constellation, but Orion was repurposed and survived.

A test flight of the capsule is planned for next year; it will fly 3,600 miles away and then return.

___

Online:

NASA: http://www.nasa.gov/exploration/systems/mpcv/index.html

European Space Agency: http://bit.ly/ZXPuqg

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Why U.S. needs tougher child labor rules

Cristina Traina says in his second term, Obama must address weaknesses in child farm labor standards

STORY HIGHLIGHTS

• Cristina Traina: Obama should strengthen child farm labor standards


• She says Labor Dept. rules allow kids to work long hours for little pay on commercial farms


• She says Obama administration scrapped Labor Dept. chief's proposal for tightening rules


• She says Labor Dept. must fix lax standards for kid labor on farmers; OSHA must enforce them

Editor's note: Cristina L.H. Traina is a Public Voices Op Ed fellow and professor at Northwestern University, where she is a scholar of social ethics.

(CNN) -- President Barack Obama should use the breathing space provided by the fiscal-cliff compromise to address some of the issues that he shelved during his last term. One of the most urgent is child farm labor. Perhaps the least protected, underpaid work force in American labor, children are often the go-to workers for farms looking to cut costs.

It's easy to see why. The Department of Labor permits farms to pay employees under 20 as little as $4.25 per hour. (By comparison, the federal minimum wage is $7.25.) And unlike their counterparts in retail and service, child farm laborers can legally work unlimited hours at any hour of day or night.

The numbers are hard to estimate, but between direct hiring, hiring through labor contractors, and off-the-books work beside parents or for cash, perhaps 400,000 children, some as young as 6, weed and harvest for commercial farms. A Human Rights Watch 2010 study shows that children laboring for hire on farms routinely work more than 10 hours per day.

As if this were not bad enough, few labor safety regulations apply. Children 14 and older can work long hours at all but the most dangerous farm jobs without their parents' consent, if they do not miss school. Children 12 and older can too, as long as their parents agree. Unlike teen retail and service workers, agricultural laborers 16 and older are permitted to operate hazardous machinery and to work even during school hours.

In addition, Human Rights Watch reports that child farm laborers are exposed to dangerous pesticides; have inadequate access to water and bathrooms; fall ill from heat stroke; suffer sexual harassment; experience repetitive-motion injuries; rarely receive protective equipment like gloves and boots; and usually earn less than the minimum wage. Sometimes they earn nothing.

Little is being done to guarantee their safety. In 2011 Secretary of Labor Hilda Solis proposed more stringent agricultural labor rules for children under 16, but Obama scrapped them just eight months later.

Adoption of the new rules would be no guarantee of enforcement, however. According to the 2010 Human Rights Watch report, the Department of Labor employees were spread so thin that, despite widespread reports of infractions they found only 36 child labor violations and two child hazardous order violations in agriculture nationwide.

This lack of oversight has dire, sometimes fatal, consequences. Last July, for instance, 15-year-old Curvin Kropf, an employee at a small family farm near Deer Grove, Illinois, died when he fell off the piece of heavy farm equipment he was operating, and it crushed him. According to the Bureau County Republican, he was the fifth child in fewer than two years to die at work on Sauk Valley farms.

If this year follows trends, Curvin will be only one of at least 100 children below the age of 18 killed on American farms, not to mention the 23,000 who will be injured badly enough to require hospital admission. According to Center for Disease Control and Prevention statistics, agriculture is one of the most dangerous industries. It is the most dangerous for children, accounting for about half of child worker deaths annually.

The United States has a long tradition of training children in the craft of farming on family farms. At least 500,000 children help to work their families' farms today.

Farm parents, their children, and the American Farm Bureau objected strenuously to the proposed new rules. Although children working on their parents' farms would specifically have been exempted from them, it was partly in response to worries about government interference in families and loss of opportunities for children to learn agricultural skills that the Obama administration shelved them.

Whatever you think of family farms, however, many child agricultural workers don't work for their parents or acquaintances. Despite exposure to all the hazards, these children never learn the craft of farming, nor do most of them have the legal right to the minimum wage. And until the economy stabilizes, the savings farms realize by hiring children makes it likely that even more of them will be subject to the dangers of farm work.

We have a responsibility for their safety. As one of the first acts of his new term, Obama should reopen the child agricultural labor proposal he shelved in spring of 2012. Surely, farm labor standards for children can be strengthened without killing off 4-H or Future Farmers of America.

Second, the Department of Labor must institute age, wage, hour and safety regulations that meet the standards set by retail and service industry rules. Children in agriculture should not be exposed to more risks, longer hours, and lower wages at younger ages than children in other jobs.

Finally, the Department of Labor and the Occupational Safety and Health Administration must allocate the funds necessary for meaningful enforcement of child labor violations. Unenforced rules won't protect the nearly million other children who work on farms.

Agriculture is a great American tradition. Let's make sure it's not one our children have to die for.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Cristina Traina.

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Quinn to name former prosecutor Fitzgerald to UI board

Gov. Pat Quinn will name former U.S. Attorney Patrick Fitzgerald to the University of Illinois Board of Trustees, the Tribune has learned.

Fitzgerald will replace first term trustee Lawrence Oliver II, according to a source who was informed of the decision.

The appointment would mark a quick return to the public eye for Fitzgerald, a career prosecutor who left the U.S. attorney's office in Chicago for private law practice in 2012 after a long run that included putting former Govs. George Ryan and Rod Blagojevich behind bars.

Oliver told the Tribune he received a call from Quinn's office Wednesday afternoon with the news that he would not be reappointed. Oliver, who was appointed as a political independent and maintains that affiliation, said he suspects he was not reappointed because he voted in a 2010 Democratic primary.

By law, U. of I. can have no more than five members from any political party, and there are already five Democrats on the board.

Both of the other two board members whose terms expire Monday say they were told they were reappointed to another six-year term. James Montgomery, a Democrat and a Chicago attorney, refused the governor's call to resign during the university scandal over politically connected admissions to the school. Dr. Timothy Koritz, an anesthesiologist at Rockford Memorial Hospital, was appointed by Quinn when he revamped the board in 2009. Koritz, a Republican, was told Wednesday that he would serve a second term.

Quinn’s office is expected to announce the appointments prior to U. of I.'s board meeting next week.

Oliver, chief counsel for investigations at the Boeing Co. who served on Quinn's Illinois Reform Commission, said he was disappointed by the governor's decision. He said he voted in the 2010 Democratic primary to support David Hoffman for U.S. Senate.

U. of I.'s  nine-member board has to be politically balanced, according to state statute. The current board has five Democrats, three Republicans and one Independent.

The U. of I. board is scheduled to meet next Thursday, at which time it will take its annual vote on a chairman and other officers of the board.

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Hostages still held after Sahara assault

ALGIERS (Reuters) - At least 22 foreign hostages remained unaccounted for on Friday after Algerian forces stormed a desert gas complex to free hundreds of captives taken by Islamist gunmen, an operation in which dozens of the hostages were killed.

With Western leaders clamoring for details of the assault they said Algeria had launched on Thursday without consulting them, a local source said the gas base was still surrounded by Algerian special forces and some hostages remained inside.

Thirty hostages, including several Westerners, were killed during the storming on Thursday, the source said, along with at least 11 of their captors, who said they had taken the site as retaliation for French intervention against Islamists in neighboring Mali.

Fourteen Japanese were among those still unaccounted for by the early hours of Friday, their Japanese employer said, while Norwegian energy company Statoil, which runs the Tigantourine gas field with Britain's BP and Algeria's national oil company, said eight Norwegian employees were still missing.

An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops whose commanders said they moved in about 30 hours after the siege began because the gunmen had demanded to be allowed to take their captives abroad.

The crisis posed a serious dilemma for Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in Mali. It also left question marks over the ability of OPEC-member Algeria to protect vital energy resources and strained its relations with Western powers.

Two Japanese, two Britons and a French national were among at least seven foreigners killed, the source told Reuters. Eight dead hostages were Algerian. The nationalities of the rest, as well as of perhaps dozens more who escaped, were unclear. Some 600 local Algerian workers, less well guarded, survived.

A diplomatic source said Britain had not received any information to suggest the hostage situation had ended. "The situation is still really fluid on the ground. We have no information from the Algerian authorities that it's over."

Japan's Prime Minister Shinzo Abe has cancelled part of his trip in Southeast Asia, his first overseas trip since taking office, and will fly home early due to the hostage crisis, Japan's senior government spokesman said on Friday.

"The action of Algerian forces was regrettable," said Japan's Chief Cabinet Secretary Yoshihide Suga, adding Tokyo had not been informed of the operation in advance.

Americans, Romanians and an Austrian have also been mentioned by their governments as having been captured by the militants, who call themselves the "Battalion of Blood" and have demanded France end its week-old offensive in Mali.

Underlining the view of African and Western leaders that they face a multinational Islamist insurgency across the Sahara - a conflict that prompted France to send hundreds of troops to Mali last week - the official source said only two of the 11 dead militants were Algerian, including the squad's leader.

The bodies of three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman - all assumed to have been hostage-takers - were found, the security source said.

The group had claimed to have dozens of guerrillas on site and it was unclear whether any militants had managed to escape.

The overall commander, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present and has now risen in stature among a host of Saharan Islamists, flush with arms and fighters from chaotic Libya, whom Western powers fear could spread violence far beyond the desert.

"NO TO BLACKMAIL"

Algeria's government made clear it remains implacably at odds with Islamist guerrillas who remain at large in the south, years after the civil war in which some 200,000 people died. Communication Minister Mohamed Said repeated their refusal ever to negotiate with hostage-takers.

"We say that in the face of terrorism, yesterday as today as tomorrow, there will be no negotiation, no blackmail, no respite in the struggle against terrorism," he told APS news agency.

British Prime Minister David Cameron, who warned people to prepare for bad news and who cancelled a major policy speech on Friday to deal with the situation, said through a spokesman that he would have liked Algeria to have consulted before the raid.

A Briton and an Algerian were also killed on Wednesday.

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

A U.S. official said on Thursday it would provide transport aircraft to help France with a mission whose vital importance, President Francois Hollande said, was demonstrated by the attack in Algeria. Some fear, however, that going on the offensive in the remote region could provoke more bloodshed closer to home.

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

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; writing by Alastair Macdonald and Philippa Fletcher; editing by Peter Millership, Michael Perry and Will Waterman)

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European shares retreat on corporate worries, growth outlook

LONDON (Reuters) - European shares edged down on Thursday as concerns grow over the outlook for growth and corporate earnings, while oil prices gained support after Islamist militants attacked an Algerian gas field.

Worries about the global economic outlook have revived since the World Bank cut its 2013 forecast for global growth to 2.4 percent from its previous estimate of 3 percent, citing the prospect of poor performance across the developed world.

A massive $14 billion writedown at global mining giant Rio Tinto amid fears weak growth in the fourth quarter of 2012 will result in poor corporate results has further undermined investor confidence.

"The market will remain predominantly in a consolidation mood following a cautious outlook on earnings. I think European companies will disappoint a bit," said Christian Stocker, equity strategist at UniCredit in Munich.

The FTSEurofirst 300 index <.fteu3> of top European shares slipped nearly 0.1 percent to 1,159.00 points in early trade. London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were flat to 0.3 percent lower.

"There's been a mixed bag on the earnings front so far," said Darren Easton, director of trading at Logic Investments.

"In the short-term, we're in the bear camp," he added.

MSCI's broadest index of Asian shares outside Japan <.miapj0000pus> fell 0.2 percent, extending declines for a third consecutive session.

The falls were led by a slump in Chinese stocks as investors retreated ahead a slew of key economic data due on Friday including fourth-quarter GDP, December industrial output, retail sales and house prices.

Oil prices, which are under pressure from the prospects of weaker demand in 2013, gained support from concerns about supplies being affected by military activity in Algeria and Mali.

Islamist fighters seized dozens of Western and Algerian hostages in a dawn raid on a natural gas facility deep in the Sahara on Wednesday and demanded France halt a new offensive against rebels in neighboring Mali.

Brent added 2 cents to $109.70 a barrel, though U.S. oil slipped 10 cents to $94.14.

In the debt market, yields on safe-have German bonds were creeping lower as equity markets softened, but investors were reluctant to make big bets before a Spanish debt sale.

Spain plans to tap the market for up to 4.5 billion euros in short and long-term bonds and is expected to see good demand and sharply lower yields as the European Central Bank's promise to support the debt of struggling nations has encouraged investors.

The dollar and the euro were choppy, as both currencies pared back some of their recent big gains against the yen after a Japanese official this week expressed concerns about excessive yen weakness.

The yen is expected to remain on a weakening trend amid expectations for bolder BOJ monetary easing measures at its January 21-22 policy meeting as part of the new government's push to drive Japan out of years of deflation and economic slump.

The dollar rose 0.25 percent to 88.60 yen, off its peak since June 2010 of 89.67 touched on Monday, while the euro gained 0.4 percent to 117.95 yen, after surging to its highest since May 2011 of 120.13 yen on Monday.

"The BOJ will probably disappoint to some degree. They'll deliver what the market expects but no more than that," said Gareth Berry, G10 FX strategist for UBS in Singapore.

(Reporting by Richard Hubbard; Editing by Will Waterman)

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Manti Te'o girlfriend's death apparently a hoax

SOUTH BEND, Ind. (AP) — Not long before Notre Dame played Michigan State last fall, word spread that Fighting Irish linebacker Manti Te'o had lost his grandmother and girlfriend within hours of each other.

Te'o never missed a practice and made a season-high 12 tackles, two pass breakups and a fumble recovery in a 20-3 victory against the Spartans. His inspired play became a stirring story line for the Fighting Irish as they made a run to the national championship game behind their humble, charismatic star.

Te'o's grandmother did indeed die. His girlfriend, Lennay Kekua, never existed.

In a shocking announcement Wednesday night, Notre Dame said Te'o was duped into an online relationship with a woman whose "death" from leukemia was faked by perpetrators of an elaborate hoax. The goal of the scam wasn't clear, though Notre Dame said it used an investigative firm to dig into the details after Te'o disclosed them three weeks ago.

The hoax was disclosed hours after Deadspin.com posted a lengthy story, saying it could find no record that Kekua ever existed. The story suggests a friend of Te'o may have carried out the hoax and that the football player may have been in on it — a stunning claim against a widely admired All-American who led the most famed program in college football back to the championship game for the first time since 1988.

"This is incredibly embarrassing to talk about, but over an extended period of time, I developed an emotional relationship with a woman I met online," Te'o said in a statement. "We maintained what I thought to be an authentic relationship by communicating frequently online and on the phone, and I grew to care deeply about her. "

However, he stopped short of saying he had ever met her in person or correcting reports that said he had, though he did on numerous occasions talk about how special the relationship was to him.

"To realize that I was the victim of what was apparently someone's sick joke and constant lies was, and is, painful and humiliating," he said. "In retrospect, I obviously should have been much more cautious. If anything good comes of this, I hope it is that others will be far more guarded when they engage with people online than I was."

Word of the hoax spread quickly and raised questions about whether the school somehow played a role in pushing the tale.

Notre Dame athletic director Jack Swarbrick said at a news conference that Te'o told coaches on Dec. 26 that he had received a call from Kekua's phone number while at an awards ceremony during the first week of December.

"When he answered it, it was a person whose voice sounded like the same person he had talked to, who told him that she was, in fact, not dead. Manti was very unnerved by that, as you might imagine," Swarbrick said.

Swarbrick said the school hired investigators and their report indicated those behind the hoax were in contact with each other, discussing what they were doing.

The investigators "were able to discover online chatter among the perpetrators that was certainly the ultimate proof of this, the joy they were taking," Swarbrick said. "The casualness among themselves they were talking about what they accomplished."

Swarbrick said for Te'o "the pain was real."

"The grief was real. The affection was real," he said. "That's the nature of this sad, cruel game."

Swarbrick added: "Nothing about what I have learned has shaken my faith in Manti Te'o one iota."

Swarbrick said Notre Dame did not take the matter to the police, saying that the school left it up to Te'o and his family to do so. He added that Notre Dame did not plan to release the findings of its investigation.

"We had no idea of motive, and that was really significant to us. ... Was somebody trying to create an NCAA violation at the core of this? Was there somebody trying to impact the outcome of football games by manipulating the emotions of a key player? Was there an extortion request coming? When you match the lack of sort of detail we lacked until we got some help investigating it with the risk involved, it was clear to me until we knew more we had to just to continue to work to try to gather the facts," Swarbrick said.

The Deadspin report changed all that.

Friends and relatives of Ronaiah Tuiasosopo told Deadspin they believe he created Kekua. The website said Te'o and Tuiasosopo knew each other. Attempts by The Associated Press to reach Tuiasosopo by telephone were unsuccessful.

As for Kekua, Deadspin said she does not have a death certificate. Stanford, where she reportedly went to school, has no record of anybody by that name, the website said. Deadspin said a record search produced no obituary or funeral announcement. There is no record of her birth in the news.

There are a few Twitter and Instagram accounts registered to Lennay Kekua, but the website reported that photographs identified as Kekua online and in TV news reports are pictures from the social-media accounts of a 22-year-old California woman who is not named Lennay Kekua.

Te'o talked freely about their relationship after her supposed death and how much she meant to him.

In a story that appeared in The South Bend Tribune on Oct. 12, Manti's father, Brian, recounted an anecdote about how his son and Kekua met after Notre Dame had played at Stanford in 2009. Brian Te'o also told the newspaper that Kekua had visited Hawaii and met with his son. Brian Te'o told the AP in an interview in October that he and his wife had never met Manti's girlfriend but they had hoped to at the Wake Forest game in November. The father said he believed the relationship was just beginning to get serious when she died.

The Tribune released a statement saying: "At the Tribune, we are as stunned by these revelations as everyone else. Indeed, this season we reported the story of this fake girlfriend and her death as details were given to us by Te'o, members of his family and his coaches at Notre Dame."

The week before Notre Dame played Michigan State on Sept. 15, coach Brian Kelly told reporters when asked that Te'o's grandmother and a friend had died. He said Kekua had told Te'o not to miss a game if she died. The linebacker turned in one of his best performances of the season and his playing through heartache became a prominent theme during the Irish's undefeated regular season. He finished second in Heisman voting.

"It further pains me that the grief I felt and the sympathies expressed to me at the time of my grandmother's death in September were in any way deepened by what I believed to be another significant loss in my life," Te'o said in his statement.

"I am enormously grateful for the support of my family, friends and Notre Dame fans throughout this year. To think that I shared with them my happiness about my relationship and details that I thought to be true about her just makes me sick. I hope that people can understand how trying and confusing this whole experience has been."

Te'o and the Irish lost the title game to Alabama, 42-14 on Jan. 7. He has graduated and was set to begin preparing for the NFL combine and draft at the IMG Academy in Bradenton, Fla., this week.

"Fortunately, I have many wonderful things in my life," he said in his statement, "and I'm looking forward to putting this painful experience behind me as I focus on preparing for the NFL draft."

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Scientology ad crossed the line

The Church of Scientology is also at fault for thinking the advertorial would survive The Atlantic readers' scrutiny, Ian Schafer says.

STORY HIGHLIGHTS

• The Atlantic published and pulled a sponsored Scientology "story"


• Ian Schafer: On several levels, the ad was a mistake


• He says the content was heavy-handed and comments were being moderated


• Schafer: Experimenting to raise revenue makes sense, but standards should be clear

Editor's note: Ian Schafer is the founder and CEO of a digital advertising agency, Deep Focus, and the alter ego of @invisibleobama. You can read his rants on his blog at ianschafer.com.

(CNN) -- "The Atlantic is America's leading destination for brave thinking and bold ideas that matter. The Atlantic engages its print, online, and live audiences with breakthrough insights into the worlds of politics, business, the arts, and culture. With exceptional talent deployed against the world's most important and intriguing topics, The Atlantic is the source of opinion, commentary, and analysis for America's most influential individuals who wish to be challenged, informed, and entertained." -- The Atlantic 2013 media kit for advertisers

On Monday, The Atlantic published -- and then pulled -- a story titled "David Miscavige Leads Scientology to Milestone Year." This "story" went on to feature the growth of Scientology in 2012.

Ian Schafer

Any regular reader of The Atlantic's content would immediately do a double-take upon seeing that kind of headline, much less the heavy-handed text below it, shamelessly plugging how well Scientology's "ecclesiastical leader" Miscavige has done in "leading a renaissance for the religion."

This "story" is one of several "advertorials" (a portmanteau of "advertising" and "editorials") that The Atlantic has published online, clearly designated as "Sponsor Content." In other words, "stories" like these aren't real stories. They are ads with a lot of words, which advertisers have paid publications to run on their behalf for decades. You may have seen them in magazines and newspapers as "special advertising sections."

The hope is that because you are already reading the publication, hey, maybe you'll read what the advertiser has to say, too -- instead of the "traditional" ad that they may have otherwise placed on the page that you probably won't remember, or worse, will ignore.

There's nothing wrong with this tactic, ethically, when clearly labeled as "sponsored" or "advertising." But many took umbrage with The Atlantic in this particular case; so many, that The Atlantic responded by pulling the story from its site -- which was the right thing to do -- and by apologizing.

At face value, The Atlantic did the right thing for its business model, which depends upon advertising sales. It sold what they call a "native" ad to a paying advertiser, clearly labeled it as such, without the intention of misleading readers into thinking this was a piece of journalism.

But it still failed on several levels.

The Atlantic defines its readers as "America's most influential individuals who wish to be challenged, informed, and entertained." By that very definition, it is selling "advertorials" to people who are the least likely to take them seriously, especially when heavy-handed. There is a fine line between advertorial and outright advertising copywriting, and this piece crossed it. The Church of Scientology is just as much at fault for thinking this piece would survive The Atlantic readers' intellectual scrutiny. But this isn't even the real issue.

Bad advertising is all around us. And readers' intellectual scrutiny would surely have let the advertorial piece slide without complaints (though snark would be inevitable), as they have in the past, or yes, even possibly ignored it. But here's where The Atlantic crossed another line -- it seemed clear it was moderating the comments beneath the advertorial.

As The Washington Post reported, The Atlantic marketing team was carefully pruning the comments, ensuring that they were predominantly positive, even though many readers were leaving negative comments. So while The Atlantic was publishing clearly labeled advertiser-written content, it was also un-publishing content created by its readers -- the very folks it exists to serve.

It's understandable that The Atlantic would inevitably touch a third rail with any "new" ad format. But what it calls "native advertising" is actually "advertorial." It's not new at all. Touching the third rail in this case is unacceptable.

So what should The Atlantic have done in this situation before it became a situation? For starters, it should have worked more closely with the Church of Scientology to help create a piece of content that wasn't so clearly written as an ad. If the Church of Scientology was not willing to compromise its advertising to be better content, then The Atlantic should not have accepted the advertising. But this is a quality-control issue.

The real failure here was that comments should never have been enabled beneath this sponsored content unless the advertiser was prepared to let them be there, regardless of sentiment.

It's not like Scientology has avoided controversy in the past. The sheer, obvious reason for this advertorial in the first place was to dispel beliefs that Scientology wasn't a recognized religion (hence "ecclesiastical").

Whether The Atlantic felt it was acting in its advertiser's best interest, or the advertiser specifically asked for this to happen, letting it happen at all was a huge mistake, and a betrayal of an implicit contract that should exist between a publication of The Atlantic's stature and its readership.

No matter how laughably "sales-y" a piece of sponsored content might be, the censoring of readership should be the true "third rail," never to be touched.

Going forward, The Atlantic (and any other publication that chooses to run sponsored content) should adopt and clearly communicate an explicit ethics statement regarding advertorials and their corresponding comments. This statement should guide the decisions it makes when working with advertisers, and serve as a filter for the sponsored content it chooses to publish, and what it recommends advertisers submit. It should also prevent readers from being silenced if given a platform at all.

As an advertising professional, I sincerely hope this doesn't spook The Atlantic or any other publication from experimenting with ways to make money. But as a reader, I hope it leads to better ads that reward me for paying attention, rather than muzzle my voice should I choose to interact with the content.

After all, what more could a publication or advertiser ask for than for content to be so interesting that someone actually would want to comment on (or better, share) it?

(Correction: An earlier version of this article incorrectly said native advertising accounts for 59% of the Atlantic's ad revenue. Digital advertising, of which native advertising is a part, accounts for 59% of The Atlantic's overall revenue, according to the company.)

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The opinions expressed in this commentary are solely those of Ian Schafer.

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