Economic summit must tackle Arab Spring, says Saudi minister






RIYADH: A two-day economic summit that opens on Monday in Saudi Arabia must break with tradition and tackle people's aspirations in the wake of the Arab Spring uprisings, the Saudi foreign minister said.

"Our meeting should not be mired in routine," Prince Saud al-Faisal said at a meeting Saturday to prepare for the third Arab Economic and Social Development Summit.

"The Arab world has faced these past two years upheavals of a political dimension... but we cannot ignore their economic dimension," he added.

The minister stressed that the summit must tackle "the problems and issues that concern the lives of our people. We must meet the aspirations of the people."

Poverty, unemployment and social inequalities were among the causes that triggered a Tunisian uprising in late 2010 that later spread to Egypt, Libya, Yemen, Bahrain and Syria.

Experts have warned the Arab world risks losing the fragile gains made by the uprisings, which brought to an end decades of iron-fisted rule by leaders in Tunisia, Egypt, Libya and Yemen.

A recent economic report noted that unemployment in 2011 stood at 16 percent in Arab countries where 17 million people out of 300 million are jobless.

At the same time inter-Arab investments stood at a mere 25 billion dollars across the region.

The summit in oil-rich Saudi Arabia is expected to discuss the amendment of an Arab convention on investments in a bid to bolster the role of the private sector, the minister said.

The meeting would also examine means of drawing up new financial resources to support impoverished Arab states, he added.

IMF first deputy managing director David Lipton told Tunisian businessmen in November that Arab countries in transition should push for reforms, encourage investment, boost productivity and create jobs.

A World Bank-Gallup poll survey published on November 27 stressed the regime was in dire need of "social safety nets" to satisfy the socio-economic demands of the Arab Spring.

- AFP/de



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Man posts on Facebook: 'im about to get shot'; gets shot


It seems that people want to announce everything on Facebook, even their imminent demise.


30-year-old Eric L. Ramsey knew his time was up, so he took out his cell phone and posted on his Facebook wall: "Well folkes [sic] im about to get shot. Peace"


As NBC News reports, some of his friends thought he was joking.


However, shortly after his 3:15 a.m. post, he was fatally shot by a policeman.



More Technically Incorrect


The police were searching for Ramsey after he allegedly kidnapped and raped a woman at Central Michigan University, set a house ablaze, stole a sanitation truck, and rammed into the
cars of two Michigan State troopers.


The victim of the alleged rape had managed to escape and had alerted the police.


The Isabella County Sheriff, Leo Mioduszewki, said in a press release (PDF): "A short while later, a Crawford County Deputy located the sanitation truck, and the suspect ended up hitting the deputy's car head on. The deputy then got out of the patrol car, ran up to the cab of the pickup, and fired shots, fatally wounding the suspect."


It's not clear what time Ramsey was shot or how he had time to make the Facebook post.


Ramsey isn't the first alleged criminal to have used Facebook during his activity. Two years ago, a man held a woman hostage in a Utah hotel and posted constant updates to his Facebook account.


In the case of Ramsey, Facebook seems to have been the only way he could offer a short goodbye.


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Fiery Orioles manager Earl Weaver dead at 82

BALTIMORE Earl Weaver, the fiery Hall of Fame manager who won 1,480 games with the Baltimore Orioles seemingly was engaged in nearly as many arguments with umpires, has died. He was 82.



Dick Gordon, Weaver's marketing agent, said Saturday that Weaver died while on a Caribbean cruise sponsored by the Orioles. Gordon said Weaver's wife told him that Weaver went back to his cabin after dinner and began choking between 10:30 and 11 Friday night. Gordon said a cause of death has not been determined.



The Duke of Earl, as he was affectionately known in Baltimore, took the Orioles into the World Series four times over 17 seasons but won only one title, in 1970. His .583 winning percentage ranks fifth among managers who served 10 or more seasons in the 20th century.



"Earl Weaver stands alone as the greatest manager in the history of the Orioles organization and one of the greatest in the history of baseball," Orioles owner Peter Angelos said. "This is a sad day for everyone who knew him and for all Orioles fans. Earl made his passion for the Orioles known both on and off the field. On behalf of the Orioles, I extend my condolences to his wife, Marianna, and to his family."



Weaver was a salty-tongued manager who preferred to wait for a three-run homer rather than manufacture a run with a stolen base or a bunt. While some baseball purists argued that strategy, no one could dispute the results.



"He was an intense competitor and smart as a whip when it comes to figuring out ways to beat you," said Davey Johnson, who played under Weaver in the minor leagues and with the Orioles from 1965 to 1972.



Weaver had a reputation as a winner, but umpires knew him as a hothead. Weaver would often turn his hat backward and yell directly into an umpire's face to argue a call or a rule, and after the inevitable ejection he would more often than not kick dirt on home plate or on the umpire's shoes.



He was ejected 91 times, including once in both games of a doubleheader.


Asked once if his reputation might have harmed his chances to gain entry into the Hall of Fame, Weaver admitted, "It probably hurt me."



Those 91 ejections were overshadowed by his five 100-win seasons, six AL East titles and four pennants. Weaver was inducted into the Hall in 1996, 10 years after he managed his final game with Baltimore at the end of an ill-advised comeback.



In 1985, the Orioles' owner at the time, Edward B. Williams, coaxed Weaver away from golf to take over a struggling squad. Weaver donned his uniform No. 4, which had already been retired by the team, and tried to breathe some life into the listless Orioles.



Baltimore went 53-52 over the last half of the 1985 season, but finished seventh in 1986 with a 73-89 record. It was Weaver's only losing season as a major-league manager, and he retired for good after that.



"If I hadn't come back," Weaver said after his final game, "I would be home thinking what it would have been like to manage again. I found out it's work."



Weaver finished with a 1,480-1,060 record. He won Manager of the Year three times.



"I had a successful career, not necessarily a Hall of Fame career, but a successful one," he said.


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Inauguration to Cost Millions But Total Price Unclear













How much will all the inaugural events cost? It's hard to say.


While most events that occur in the capital have a hard-and-fast budget, the inauguration's many moving parts, safety concerns and large geographic reach make it hard to quantify – especially before the main event.


In 2009, ABC reported the total cost of Obama's first inauguration was $170 million. While incumbent presidents historically spend less on a second inauguration, it's unclear what the total bill will be this time around. Analysis of some of the known appropriations so far puts the total at $13.637 million, but it will no doubt be a much larger price tag when everything is accounted for.


RELATED: 12 Things You Didn't Know About the Inauguration


One of the main chunks missing from this year's tab is the budget for the Presidential Inaugural Committee – the group responsible for using donated money to put together this year's celebrations, including National Day of Service, the Kids' Inaugural Concert, the Parade and the Inaugural Balls.


In 2009, the PIC collected more than $53 million in donations, according to a report filed with the Federal Elections Commission 90 days after the inauguration.






Saul Loeb/AFP/Getty Images











Politically Dressed: Inauguration First Daughters Watch Video









While enthusiasm for the inauguration was running higher that year, it is possible the PIC will haul in more money this time around, as they have eliminated some of the self-imposed regulations on the kinds of donations they can accept. For his first inauguration, President Obama did not take money from corporations or gifts that exceeded $50,000.


In 2013, his committee did away with those rules. PIC spokesman Brent Colburn would not say why the change took place, insisting that each committee operates independently from the precedent set by the inaugurations before – even if staff like Colburn are repeats on the committee from 2009.


RELATED: Inauguration Weekend: A Star-Powered Lineup


The PIC also won't say how much they have already collected or even what their goal was. Colburn explained that these are "moving budgets," which won't stabilize until after the inauguration.


They have, however, released the names of donors on their website weekly. As of Friday afternoon, they were up to 993 donors.


Another leg of the costs is covered by the Joint Congressional Committee on Inaugural Ceremonies. They take care of the swearing-in ceremony and the Congressional luncheon. For those events they have a total budget of $1.237 million, down by about $163,000 from 2009. Whereas the PIC budget comes from donations, the American taxpayers foot the bill for the JCCIC.


Beyond those two inauguration-focused groups, there are a myriad of broader organizations that spend money on the inauguration as well.


RELATED: Plenty of Room at the Inns for 2013 Inauguration


A Congressional Research Service report from December says the government spent $22 million reimbursing local and state governments and the National Park Service for their participation in the 2009 inauguration, but that figure is low. The D.C. government alone received twice that amount, according to the mayor's office. Officials from D.C., Maryland and Virginia estimated their total need to be $75 million.


NPS got an appropriation from Congress of $1.2 million so far this year, according to communications officer Carol Johnson, and another $1.4 million went to the U.S. Park Police.






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Foreigners still caught in Sahara hostage crisis


ALGIERS (Reuters) - More than 20 foreigners were still being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants, who threatened to attack other energy installations.


Thirty hostages, including at least seven Westerners, were killed during Thursday's assault, along with at least 18 of their captors, said an Algerian security source.


The attack, which plunged capitals around the world into crisis mode, 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.


A local Algerian source said 100 of 132 foreign hostages had been freed from the facility. The fate of the other 32 was unclear as the situation was changing rapidly.


Earlier he said 60 were still missing with some believed still held hostage, but it was unclear how many, and how many might be in hiding elsewhere in the sprawling compound.


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.


Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30.


France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.


Some countries have been reluctant to give details of the numbers of their missing nationals to avoid disclosing information that may be useful to their captors.


As Western leaders clamored for news, several expressed anger they had not been consulted by the Algerian government about its decision to storm the facility.


The sprawling facility housed hundreds of workers. Algeria's state news agency said the army had rescued 650 hostages in total, 573 of whom were Algerians.


"(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," it said, 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.


An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops.


A French hostage employed by a French catering company said Algerian military forces had found some British hostages hiding and were combing the sprawling In Amenas site for others when he was escorted away by the military.


"I hid in my room for nearly 40 hours, under the bed. I put boards up pretty much all round," Alexandre Berceaux told Europe 1 raid. "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."


"When Algerian solders ... came for me, I didn't even know it was over. They were with some of my colleagues, otherwise I'd never have opened the door."


Western governments are trying to determine the degree to which the hostage taking was part of an international conspiracy and was linked, as the captors claimed, to the week-old French military intervention in neighboring Mali.


The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.


Algeria state news agency APS said the group had planned to take the hostages to Mali.


The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.


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," he said in London. "Those who would wantonly attack our country and our people will have no place to hide."


MALI WOES


The crisis posed a serious dilemma for former colonial power Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in Mali, another former colony.


The desert fighters have proved to be better trained and equipped than France had anticipated, diplomats told Reuters at the United Nations, which said 400,000 people could flee Mali to neighboring countries in the coming months.


In Algeria, the kidnappers warned locals to stay away from foreign companies' oil and gas installations, threatening more attacks, Mauritania's news agency ANI said, citing a spokesman for the group.


Algerian workers form the backbone of an oil and gas industry that has attracted international firms in recent years partly because of military-style security. The kidnapping, storming and further threat cast a deep shadow over its future.


Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm, said on Friday.


The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s and one of a host of Saharan Islamists, flush with arms and fighters from the 2011 civil war in Libya. He appears not to have been present.


Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who travelled from Libya, and the lesser known "Movement of the Islamic Youth in the South".


"They were carrying heavy weapons including rifles used by the Libyan army during (Muammar) Gadaffi's rule," he said. "They also had rocket-propelled grenades and machineguns."


Algeria's government is implacably at odds with Islamist guerrillas who remain at large in the south, years after the civil war through the 1990s in which some 200,000 people died.


Britain's Cameron, who warned people to prepare for bad news and who cancelled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.


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.


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 security measures.


(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 Philippa Fletcher; Editing by Peter Graff)



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Toyota settles 'bellwether' US wrongful death suit






WASHINGTON: Japanese automaker Toyota has settled a wrongful death lawsuit in the United States over sudden, unintended acceleration that allegedly killed two people in Utah in 2010.

"We are satisfied that both parties reached a mutually acceptable agreement to settle this case," Toyota Motor Corp said in a statement late Thursday.

A Toyota spokeswoman, Celeste Migliore, told AFP it was the first "bellwether" settlement among hundreds of cases pending in a federal court in California.

Toyota did not reveal financial details of the settlement, but said in a statement it "will have a number of other opportunities to defend our product at trial... and other legal venues."

"We would emphasize that at no time has anyone put forth any reliable scientific evidence of an alleged electronic defect in our vehicles that could cause unintended acceleration," it said.

The settled case involved a man and woman in the US state of Utah killed when the Toyota Camry they were traveling in slammed into a wall.

Critics have argued that Toyota's accelerator technology was behind several deadly accidents.

But Japan's biggest automaker said its accelerator technology was confirmed as safe.

"We sympathize with anyone in an accident involving one of our vehicles; however, we continue to stand fully behind the safety and integrity of Toyota's Electronic Throttle Control System, which multiple independent evaluations have confirmed as safe," the statement said.

The acceleration problem prompted a recall of millions of Toyota vehicles in 2009-2010, severely damaging the carmaker's once-sterling reputation.

Toyota has argued at least in some cases that the problems involved floor mats that came loose and trapped the accelerator pedal.

Last year, Toyota added two models to 2009-2010 recalls citing the floor mat problem.

Toyota's mishandling of its vehicle problems led to a US congressional probe, more than $50 million in fines from US regulators and public apologies by its chief.

In December, the automaker announced an agreement to pay about $1.1 billion to settle a class-action lawsuit filed by US vehicle owners who said the value of their cars had fallen due to the recalls.

It also agreed to pay a record $17.35 million fine for failing to promptly notify US authorities that floor mats could also be trapped under the accelerators of 2010 Lexus models.

In November Toyota agreed to pay $25.5 million to settle claims from shareholders who lost money after its stock price plummeted in the wake of the recalls.

- AFP/de



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Sign up for SimCity beta -- if you can





Trying to get into the SimCity beta is an exercise in patience, but at least the game looks beautiful.



(Credit:
Maxis/EA)


Did you miss the last SimCity beta sign-up event? You're in luck, because EA and Maxis want to give you another chance to get in on the beta for the highly anticipated building game. There's a catch, though: beta builders only get to play a snapshot of game for up to one hour at any point between Friday, January 25 and the following Monday, January 28.


Amusingly, the actual process of signing up for the beta might be more difficult than playing the game itself, as the sign-up page seems to have some serious problems going on right now -- most likely due to a high influx of interested participants.




On 10 separate occasions, I was unable to sign up for the SimCity beta, experiencing several errors that would make any gamer with pre-hypertension smash his or her keyboard into smithereens. For example, after signing in with my Origin account, I then had to enter a simple Captcha verification code and was told I entered it incorrectly every time ("Your verification code was incorrect"). I know how to read a Captcha, so, no, you're incorrect EA.


Then, after somehow getting my Captcha code to actually work, the sign-up window disappeared and I was redirected back to the main SimCity Web page, only to see that refresh into a window displaying a Drupal error (the content management system EA uses for the Web site). How wonderful.


The SimCity Twitter account prescribed a remedy for those experiencing these errors: "Heads up, Mayors -- if you're having trouble viewing the #SimCitybeta page, try a hard refresh and clear your cache."


After clearing everything (and I mean absolutely everything, short of throwing my computer out the window) I kept encountering the same set of errors. In fact, I just tried it again, and after clicking on the beta page, it simply disappears into the void. Hopefully the actual game is easier than this horrid beta sign-up experience, which I'm sure will go back to normal after people stop trying to sign up. Good luck.



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Holder urges mayors to pressure Congress on guns

Attorney General Eric Holder, flanked by Houston, Texas Mayor Annise Parker, left, and Transportation Security Administration (TSA) Administrator John Pistole, speaks at the U.S. Conference of Mayors 81st winter meeting in Washington, Friday, Jan. 18, 2013. / AP Photo/Manuel Balce Ceneta

Attorney General Eric Holder urged the nation's mayors today to pressure Congress to move forward on gun control legislation President Obama recently proposed.

"Some have said that these changes will require 'tough' votes by members of Congress," Holder said at the U.S. Conference of Mayors event in Washington, D.C. " Public service is never easy, and there come times when those of us who are in elected or appointed positions must put the interests of those we are privileged to serve above that which might be politically expedient or professionally safe. This is one of those times."

Holder said it is "essential" that Congress pass bans on high-capacity magazines and on assault weapons. He also said Congress should pass new laws requiring universal background checks for gun purchasers and placing tougher penalties on gun traffickers. "It means taking action to ensure that, while our Second Amendment rights are upheld, we have the means to prosecute effectively those who use firearms to commit acts of violence," he said.

A new CBS News/New York Times poll released Thursday found that most Americans favor the president's proposals.

Holder was perhaps talking to a captive audience. Several of the mayors in attendance met with Vice President Joe Biden yesterday on the issue of gun violence. And 800 mayors have already joined New York City Mayor Michael Bloomberg's new group, Demand a Plan, pushing Congress to act.

Holder broadened the context of gun violence from the mass shootings of Newtown and Aurora to the daily violence that "plague[s] our cities and towns every day."

"This unspeakable tragedy, and the individual tragedies that take place on your streets all too often and all too often unnoticed, stand as stark reminders of our shared responsibility to address not just the epidemic of gun-related crimes, and the ongoing need for vigorous enforcement of our laws - but also the underlying conditions that give rise to gun violence," Holder said.

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Algeria Terrorists Want to Trade US Hostages for Blind Sheikh













The al Qaeda-linked terrorists holding Americans and other Westerners hostage at a gas plant in Algeria have now demanded the release of two convicted terrorists held in U.S. prisons, including the "blind sheikh" who helped plan the first attack on New York's World Trade Center, in exchange for the freedom of two American hostages, according to an African news service.


The terror group calling itself the Masked Brigade, which raided the BP joint venture plant in In Amenas early Wednesday, reportedly contacted a Mauritanian news service with the offer. In addition to the release of Omar Abdel-Rahman, who planned the 1993 World Trade Center bombing, they demanded the release of Aifia Siddiqui, a Pakistani scientist who shot at two U.S. soldiers in Afghanistan in 2008.


Asked about the unconfirmed report of a proposed swap, State Department spokeswoman Victoria Nuland said firmly, "The United States does not negotiate with terrorists." She repeated the statement again when questioned further. She also said she was not prepared to get into any details about the status of Americans in "an ongoing hostage situation."


At least three Americans were being held hostage by the militants when the Algerian military mounted a rescue operation at the facility Thursday that reportedly resulted in casualties.


Five other Americans who were at the facility when it was attacked by the terrorists are now safe and believed to have left the country, according to U.S. officials.






Mike Nelson/AFP/Getty Images













Algeria Hostage Situation: Military Operation Mounted Watch Video







Reports that dozens of hostages were killed during the Algerian military's attempt to retake the compound have not been confirmed, though Algeria's information minister has confirmed that there were casualties. It's known by U.S. and foreign officials that multiple British, Japanese and Norwegian hostages were killed.


According to an unconfirmed report by an African news outlet, the militants said seven hostages survived the attack, including two Americans, one Briton, three Belgians and a Japanese national. U.S. officials monitoring the case had no information indicating any Americans have been injured or killed, but said the situation is fluid and casualties cannot be ruled out.


On Friday, a U.S. military plane evacuated between 10 and 20 people in need of medical attention, none of them American, from In Amenas and took them to an American medical facility in Europe. A second U.S. plane is preparing to evacuate additional passengers in need of medical attention.


British Prime Minister David Cameron told parliament today that the terror attack "appears to have been a large, well coordinated and heavily armed assault and it is probable that it had been pre-planned."


"The terrorist group is believed to have been operating under Mokhtar Belmokhtar, a criminal terrorist and smuggler who has been operating in Mali and in the region for a number of years," said Cameron.


Cameron said Algerian security forces are still in action at the facility. On Thursday, he said that the situation was "very bad … A number of British citizens have been taken hostage. Already, we know of one who has died. ... I think we should be prepared for the possibility for further bad news, very difficult news in this extremely difficult situation."


The kidnappers had earlier released a statement saying there are "more than 40 crusaders" held "including 7 Americans."


U.S. officials had previously confirmed to ABC News that there were at least three Americans held hostage at the natural gas facility jointly owned by BP, the Algerian national oil company and a Norwegian firm at In Amenas, Algeria.


"I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation," said Panetta. "I don't think there's any question that [this was] a terrorist act and that the terrorists have affiliation with al Qaeda."


He said the precise motivation of the kidnappers was unknown.


"They are terrorists, and they will do terrorist acts," he said.






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Algerian forces launch operation to break desert siege


ALGIERS (Reuters) - Twenty-five foreign hostages escaped and six were killed on Thursday when Algerian forces launched an operation to free them at a remote desert gas plant, Algerian sources said, as one of the biggest international hostage crises in decades unfolded.


Fast-moving details of the military operation to free the hostages were difficult to confirm. Algeria's official APS news agency said that the military had freed four foreign hostages, giving no further information.


A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen. An Algerian security source said the 25 foreign hostages had escaped.


Mauritania's ANI news agency, which has been in constant contact with the kidnappers, said seven hostages were still being held: two Americans, three Belgians, one Japanese and one British citizen.


The standoff began when gunmen calling themselves the Battalion of Blood stormed the gas plant on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.


ANI and Qatar-based Al Jazeera reported that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle. Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive.


Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way but did not provide details.


As many as 180 Algerian hostages had also been held but managed to flee, the local source said.


The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against rebels after air strikes began last week.


Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought Soviet forces in Afghanistan in the 1980s and had set up his own group in the Sahara after falling out with other local al Qaeda leaders.


A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.


The hostage takers earlier allowed some prisoners to speak to the media, apparently to put pressure on Algerian forces not to storm the compound. An unidentified hostage who spoke to France 24 television said prisoners were forced to wear explosive belts and captors had threatened to blow up the plant.


Two hostages, identified as British and Irish, spoke to Al Jazeera television and called on the Algerian army to withdraw from the area to avoid casualties.


"We are receiving care and good treatment from the kidnappers. The (Algerian) army did not withdraw and they are firing at the camp," the British man said. "There are around 150 Algerian hostages. We say to everybody that negotiations is a sign of strength and will spare many any loss of life."


NUMBERS UNCONFIRMED


The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.


Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.


The militants said seven Americans were among their hostages, a figure U.S. officials said they could not confirm.


Norwegian oil company Statoil said nine of its Norwegian staff and three Algerian employees were captive. Britain's BP, which operates the plant with Statoil and Algerian state oil company Sonatrach, said some of its staff were held but would not say how many or their nationalities.


Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Paris has not said whether any hostages were French. Vienna said one hostage was Austrian, Dublin said one was Irish and Bucharest said an unspecified number were Romanian.


Spanish oil company Cepsa said it had begun to evacuate personnel from elsewhere in Algeria.


Paris said the Algeria attack demonstrated it was right to intervene in Mali: "We have the flagrant proof that this problem goes beyond just the north of Mali," French ambassador to Mali Christian Rouyer told France Inter radio.


President Francois Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its north last year.


However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.


The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.


"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met, and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.


They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.


PRESSING ON


The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was underway against the rebels that it first began targeting from the air last week.


"There was combat yesterday, on the ground and in the air. It happened overnight and is under way now," said Le Drian. Residents said a column of about 30 French Sagaie armored vehicles set off on Wednesday toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.


The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.


Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.


"The whole world clearly needs to unite and do much more than is presently being done to contain terrorism, with its very negative impact on global peace and security," President Goodluck Jonathan said.


Germany, Britain and the Netherlands have offered transport aircraft to help ferry in African troops. Washington has said it is considering what support it can offer.


Many inhabitants of northern Mali have welcomed the French action, though some also fear being caught in the cross-fire. The Mali rebels who seized Timbuktu and other oasis towns in northern Mali last year imposed Islamic law, including public amputations and beheadings that angered many locals.


A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.


(Reporting by Lamine Chikhi; Writing by Peter Graff; Editing by Giles Elgood)



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