MICE organisers reeling from rising rentals and wages






SINGAPORE : It is a mixed bag for Singapore's Meetings, Incentives, Conventions and Exhibitions (MICE) sector. Exhibition venues are raking in the cash, but event organisers have said they are reeling from rising rentals and wages.

Resorts World Sentosa (RWS) said attractions such as its Marine Life Park are luring in customers.

RWS will pull in 600,000 delegates for 3,000 events this year - 20 per cent more than last year. And it is convinced there is more upside.

Noel Hawkes, vice president of Attraction Sales at Resorts World Sentosa Singapore, said: "2013 is going to be an interesting year. The world economy is a bit shaky at the moment, but we are cautiously optimistic that we will continue to grow our business. And we can definitely see a growth of at least 10 per cent in our MICE business.

To keep up with competition, RWS said it must not "rest on its laurels" and has to continuously find new products to excite customers.

Visitors can expect a new "Sesame Street" ride to be unveiled at Universal Studios in the first quarter of next year.

In this business, the old adage "you have got to spend money to make money" rings true.

Suntec Singapore will close its doors for six months for wide-scale renovations, and it is convinced the facelift will give it an edge over the competition.

Arun Madhok, CEO of Suntec Singapore, said: "Our entire building is re-modelled to deliver a high level of flexibility. This will allow us to meet the volume needs of customers.

"We are improving our food production techniques and service style. We are adding a whole range of technology into the building to actually assist us in delivering the perfect experience for our customers."

But it isn't rosy for everyone.

Event organisers like Conference & Exhibition Management Services said they are in a fix.

Edward Liu, managing director of Conference & Exhibition Management Services, said: "Most of the venues that we make use of...tend to increase their rental rates every couple of years.

"Their rationale is that they are also facing cost challenges due to manpower costs, maintenance and so forth. So obviously, they are passing the higher charges to the hirers of their facilities."

Mr Liu added that event organisers now need to secure about 1,500 square metres of exhibition space, or about 150 booths in order to breakeven. That is an increase of 15 per cent in 10 years.

The organisers warn if they do not fill their event calendars, the rising cost of rentals and wages will squeeze their margins.

- CNA/ms



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Yeddyurappa looking at image makeover

MYSORE: Former CM B S Yeddyurappa is seeking an image makeover. On Thursday as he toured Mysore and Mandya districts, he visited Gumbaz, the mausoleum that houses tombs of Mysore rulers Tipu Sultan and Hyder Ali, held a convention of minorities at Muslim majority area in Mysore and said he is a changed man.

At the minorities meet, he said he will not allow injustice to be meted out to Muslims and will stand by them. As he arrived at Srirangapatna, he visited Nimishamba Temple and checked into the Gumbaz located next to the temple. He also paid a visit to a Jain site in the temple town before he arrived at Mysore to a grand welcome.

In a freewheeling interaction with the reporters, Yeddyurappa, in his trademark white safari, looked relaxed and insisted he is a changed man. "I'll not try to remember my days in my former party. I'm looking ahead," he said. " I've severed all my previous ties," he said when asked whether about his RSS background. I'm a new man now.

Recollecting his days when he was a member of Shikaripur local body, he said he used to cycle around the town during early mornings and would go to the office later in the day. "I've always done what I've set for," he said even as he admitted that he was not sure whether he should float new political party. Referring to emergence of regional parties as dominant forces in states like Uttar Pradesh, Bihar, West Bengal and Tamil Nadu, he said there is need for a strong political alternative to national parties in Karnataka. "I've not formed KJP out to vengeance," he asserted. Asked about his views about the move by the BJP government to ban cow slaughter, he said he supports it. Muslims have not asked to ban cow slaughter, he replied to a question.

With leaders from Mysore and Chamarajnagar districts in tow, the former CM looked confident to take on both BJP and Congress but was soft towards the latter. "Illa, illa, illa (no, non, no)," he said when asked whether Congress has given him supari to weaken BJP as alleged by JD(S) leader H D Kumaraswamy. Why are you dragging Congress into my political fight, he replied.

During his visit, he logged one of the staunch supporters of Siddaramaiah. The former ZP president B M Ramu joined KJP at the minorities meet.

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Dozens sue pharmacy, but compensation uncertain


NASHVILLE, Tenn. (AP) — Dennis O'Brien rubs his head as he details ailments triggered by the fungal meningitis he developed after a series of steroid shots in his neck: nausea, vomiting, dizziness, drowsiness, blurred vision, exhaustion and trouble with his speech and attention.


He estimates the disease has cost him and his wife thousands of dollars in out-of-pocket expenses and her lost wages, including time spent on 6-hour round trip weekly visits to the hospital. They've filed a lawsuit seeking $4 million in damages from the Massachusetts pharmacy that supplied the steroid injections, but it could take years for them to get any money back and they may never get enough to cover their expenses. The same is true for dozens of others who have sued the New England Compounding Center.


"I don't have a life anymore. My life is a meningitis life," the 59-year-old former school teacher said, adding that he's grateful he survived.


His is one of at least 50 federal lawsuits in nine states that have been filed against NECC, and more are being filed in state courts every day. More than 500 people have gotten sick after receiving injections prepared by the pharmacy.


The lawsuits allege that NECC negligently produced a defective and dangerous product and seek millions to repay families for the death of spouses, physically painful recoveries, lost wages and mental and emotional suffering. Thirty-seven people have died in the outbreak.


"The truth is the chance of recovering damages from NECC is extremely low," said John Day, a Nashville attorney who represents several patients who have been sickened by fungal meningitis.


To streamline the process, attorneys on both sides are asking to have a single judge preside over the pretrial and discovery phases for all of the federal lawsuits.


This approach, called multidistrict litigation, would prevent inconsistent pretrial rulings and conserve resources of all parties. But unlike a class-action case, those lawsuits would eventually be returned to judges in their original district for trial, according to Brian Fitzpatrick, a law professor at Vanderbilt University Law School in Nashville.


Even with this approach, Fitzpatrick noted that federal litigation is very slow, and gathering all the evidence, records and depositions during the discovery phase could take months or years.


"Most of the time what happens is once they are consolidated for pretrial proceedings, there is a settlement, a global settlement between all the lawyers and the defendants before anything is shipped back for trial," he said.


A lawyer representing NECC, Frederick H. Fern, described the consolidation process as an important step.


"A Boston venue is probably the best scenario," Fern said in an email. "That's where the parties, witnesses and documents are located, and where the acts subject to these complaints occurred."


Complicating efforts to recover damages, attorneys for the patients said, NECC is a small private company that has now recalled all its products and laid off its workers. The company's pharmacy licenses have been surrendered, and it's unclear whether NECC had adequate liability insurance.


Fern said NECC has insurance, but they were still determining what the policy covers.


But Day says, "It's clear to me that at the end of the day, NECC is not going to have sufficient assets to compensate any of these people, not even 1 percent."


As a result, many attorneys are seeking compensation from other parties. Among the additional defendants named in lawsuits are NECC pharmacist and co-founder Barry Cadden; co-founder Greg Conigliaro; sister company Ameridose and its marketing and support arm, Medical Sales Management.


Founded in 2006 by Cadden and Conigliaro, Ameridose would eventually report annual revenue of $100 million. An NECC spokesman didn't respond to a request for the pharmacy's revenue.


While Federal Drug Administration regulators have also found contamination issues at Westborough, Mass.-based Ameridose, the FDA has said it has not connected Ameridose drugs to infection or illness.


Under tort law, a lawsuit has to prove a defendant has a potential liability, which in this case could be anyone involved in the medical procedure. However, any such suit could take years and ultimately may not be successful.


"I would not be surprised if doctors, hospitals, people that actually injected the drugs, the people that bought the drugs from the compounding company, many of those people will also be sued," said Fitzpatrick.


Plaintiffs' attorneys said they're considering that option but want more information on the relationships between the compounding pharmacy and the hundreds of hospitals and clinics that received its products.


Day, the attorney in Tennessee, said the clinics and doctors that purchase their drugs from compounding pharmacies or manufacturers could be held liable for negligence because they are in a better position to determine the safety of the medicine than the patients.


"Did they use due care in determining from whom to buy these drugs?" Day said.


Terry Dawes, a Michigan attorney who has filed at least 10 federal lawsuits in the case, said in traditional product liability cases, a pharmaceutical distributor could be liable.


"We are looking at any conceivable sources of recovery for our clients including pharmaceutical supply places that may have dealt with this company in the past," he said.


Ten years ago, seven fungal meningitis illnesses and deaths were linked to injectable steroid from a South Carolina compounding pharmacy. That resulted in fewer than a dozen lawsuits, a scale much smaller than the litigations mounting up against NECC.


Two companies that insured the South Carolina pharmacy and its operators tried unsuccessfully to deny payouts. An appellate court ruled against their argument that the pharmacy willfully violated state regulations by making multiple vials of the drug without specific prescriptions, but the opinion was unpublished and doesn't set a precedent for the current litigation.


The lawsuits represent a way for patients and their families recover expenses, but also to hold the pharmacy and others accountable for the incalculable emotional and physical toll of the disease.


A binder of snapshots shows what life is like in the O'Briens' rural Fentress County, Tenn., home: Dennis hooked up to an IV, Dennis in an antibiotics stupor, bruises on his body from injections and blood tests. He's had three spinal taps. His 11-day stay in the hospital cost over $100,000, which was covered by health insurance.


His wife said she sometimes quietly checks at night to see whether her husband of 35 years is still breathing.


"In my mind, I thought we were going to fight this and get over it. But we are not ever going to get over it," said Kaye O'Brien.


Marjorie Norwood, a 59-year-old grandmother of three who lives in Ethridge, Tenn., has spent just shy of two months total in the hospital in Nashville battling fungal meningitis after receiving a steroid injection in her back. She was allowed to come home for almost a week around Thanksgiving, but was readmitted after her symptoms worsened.


Family members are still dealing with much uncertainty about her recovery, but they have not filed a lawsuit, said their attorney Mark Chalos. He said Norwood will likely be sent to a rehabilitation facility after her second stay in the hospital rather than return home again.


Marjorie Norwood's husband, an autoworker, has taken time off work to care for her and they depend on his income and insurance.


"It doesn't just change her life, it changes everyone else's life around her because we care about her and want her to be happy and well and have everything that she needs," said her daughter, Melanie Norwood.


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Royal Hoax Nurse Hanged Herself, Left 3 Notes













Jacintha Saldanha, the London nurse who killed herself after she answered a radio-station prank call about Kate Middleton, was found hanging from the neck, and left three notes, according to the coroner's officer.


The 46-year-old nurse who worked at London's King Edward VII Hospital was discovered Dec. 7 hanging by a scarf from a wardrobe in her bedroom, Coroner's Officer Lynda Martindill told a British inquest.


The wife and mother of two also had injuries to her wrists, according to police detective chief inspector James Harman.


Harman told the coroner's inquest that two notes were found at the scene and a third was discovered among Saldanha's belongings.


He did not release the contents of the notes.








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There is no suspicion of foul play in Saldanha's death, Harman said. Investigators are still trying to piece together exactly what led to her suicide, and are now interviewing her friends, family and co-workers to find more information, Harman said.


Saldanha was found dead Friday morning after police were called to an address near the hospital to "reports of a woman found unconscious," according to a statement from Scotland Yard.


Saldanha had worked at the hospital for more than four years.


DJs Mel Greig and Michael Christian of 2Day FM in Sydney called the hospital Dec. 5 pretending to be Queen Elizabeth and Prince Charles, looking to speak to Middleton, who was being treated at the hospital for acute nausea related to her pregnancy. The duo were able to obtain information about the duchess' condition.


When the royal impersonators called the hospital, Saldanha put them through to a second nurse who told the royal impersonators that Kate was "quite stable" and hadn't "had any retching."


The radio station, along with Greig and Christian, has apologized for the prank call, and the Australian Communications and Media Authority has now launched an investigation into the incident.


Coroner Fiona Wilcox has adjourned the inquest into Saldanha's death until March 26.



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Russia says Syrian rebels might win


MOSCOW/BEIRUT (Reuters) - Syrian rebels are gaining ground and might win, Russia's Middle East envoy said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad in 20 months of conflict.


"One must look the facts in the face," Russia's state-run RIA quoted Mikhail Bogdanov as saying. "Unfortunately, the victory of the Syrian opposition cannot be ruled out."


Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, said the Syrian government was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.


Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days.


The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels, who now hold an almost continuous arc of territory from the east to the southwest of Damascus.


The head of NATO said he thought Assad's government was nearing collapse and the new leader of Syria's opposition told Reuters the people of Syria no longer needed international forces to protect them.


"The horrific conditions which the Syrian people endured prompted them to call on the international community for military intervention at various times," said Mouaz al-Khatib, a preacher who heads Syria's National Coalition.


"Now the Syrian people have nothing to lose. They handled their problems by themselves. They no longer need international forces to protect them," he added in the interview on Wednesday night, accusing the international community of slumbering while Syrians were killed.


He did not specify whether by intervention he meant a no-fly zone that rebels have been demanding for month, a ground invasion - which the opposition has warned against - or arms.


He said the opposition would consider any proposal from Assad to surrender power and leave the country, but would not give any assurances until it saw a firm proposal.


In the latest blow to the government, a car bomb killed at least 16 men, women and children in Qatana, a town about 25 km (15 miles) southwest of Damascus where many soldiers live, activists and state media said.


The explosion occurred in a residential area for soldiers in Qatana, which is near several army bases, said Rami Abdelrahman, head of the pro-opposition Syrian Observatory for Human Rights.


He put the death toll as 17, including seven children and two women. State news agency SANA said 16 people had died.


State television showed soldiers walking by a partly collapsed building, with rubble and twisted metal on the road.


The pro-government Al-Ikhbariya TV said a second car bomb in the Damascus suburb of al-Jadideh killed eight, most of them women and children.


Apart from gaining territory in the outskirts of Damascus in recent weeks, rebels have also made hit-and-run attacks or set off bombs within the capital, often targeting state security buildings or areas seen as loyal to Assad, such as Jaramana, where twin bombs killed 34 people in November.


The Pakistani Foreign Office said security concerns had prompted it to withdraw the ambassador and all Pakistani staff from the embassy in the central suburb of East Mezzeh, a couple miles from the Interior Ministry.


BACK TO THE WALL


With his back to the wall, Assad was reported to be turning ever deadlier weapons on his adversaries.


"I think the regime in Damascus is approaching collapse," NATO Secretary-General Anders Fogh Rasmussen said on Thursday.


Human Rights Watch said some populated areas had been hit by incendiary bombs, containing flammable materials such as napalm, thermite or white phosphorous, which can set fire to buildings or cause severe burns and respiratory damage.


The British-based Syrian Observatory said war planes were bombing rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.


At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.


The United States, European powers and Arab states bestowed their official blessing on Syria's newly-formed opposition coalition on Wednesday, despite increasing signs of Western unease at the rise of militant Islamists in the rebel ranks.


Western nations at "Friends of Syria" talks in Marrakech, Morocco rallied around a new opposition National Coalition formed last month under moderate Islamist cleric al-khatib.


Russia, which along with China has blocked any U.N. Security Council measures against Assad, criticized Washington's decision to grant the coalition formal recognition, saying it appeared to have abandoned any effort to reach a political solution.


Bogdanov's remarks were the clearest sign yet that Russia is preparing for the possible defeat of Assad's government.


"We are dealing with issues of preparations for an evacuation. We have mobilization plans and are clarifying where our citizens are located," Bogdanov said.


A British Foreign Office spokesperson said the Russian position remained largely unchanged but the situation on the ground gave Moscow an interest in finding an agreed solution, even if the chances of such a solution remained slim.


"If Russia's position on Syria had been a brick wall, it is now a brick wall with a crack in it," the spokesperson said.



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Ukrainian MPs brawl in parliament as PM re-appointed






KIEV: The Ukrainian parliament Thursday voted to reinstate its prime minister after dozens of opposition and pro-government lawmakers brawled for a second day in the chamber notorious for its fisticuffs.

Newly-elected world boxing champion Vitali Klitschko sought to stand above the fray by staying well out of the fighting that came just before parliament voted to re-appoint Prime Minister Mykola Azarov.

Deputies in suits and shirtsleeves climbed on tables, shouted and grappled with opponents in an angry protest against lawmakers pressing electronic buttons to vote for absentee colleagues.

While lawmakers are legally obliged to vote in person, many of them run around pressing buttons for absent colleagues.

Opposition politicians rose to their feet and rushed to blockade the speaker's tribune, while being pushed back by pro-government lawmakers.

Amid angry shouts and calls for calm, some clambered on desks from where they dealt blows and jumped down on opponents.

At least one opposition lawmaker had a bruised face after being thrown to the floor and receiving punches and kicks from ruling party lawmakers, the Interfax news agency reported.

The towering boxing champion Klitschko, whose opposition party UDAR, or punch, has won 42 seats in the parliament, refrained from joining the skirmishes and could be seen seated, watching the fight calmly.

"You could call the fists of a world champion a nuclear weapon. I don't think we will use this weapon yet," Klitschko said, quoted by his party press service.

But he added: "We do support the blockading of the tribune."

After a break, the parliament managed to restore calm and hold a vote to reappoint prime minister Azarov that had been postponed from Wednesday.

A total of 252 deputies out of 450 in the single-chamber parliament supported Azarov's return to office, including President Viktor Yanukovych's ruling Regions Party, the Communists and several independents.

Three opposition factions - Batkivshchyna (Fatherland) party close to jailed ex-prime minister Yulia Tymoshenko, the UDAR party of Klitschko and the Svoboda nationalist movement - did not back Azarov.

"The politics of the Regions Party of which Azarov is a representative is anti-Ukrainian, anti-social and anti-democratic," said comments from Svoboda.

It remained unclear why Azarov, 64, took the dramatic step of resigning earlier this month, with the presidency saying at the time that Yanukovych had accepted his request to give up his post and become an MP.

Azarov called on the parliament to leave behind the "confrontation" to "face together outside challenges" including the global economic crisis that is already hurting Ukraine.

The parliament's opening session on Wednesday had earlier seen fighting erupt between opposition lawmakers and deputies whom they accused of defecting to the pro-government camp.

In a typically raucous session, feminist group Femen also staged a topless anti-corruption protest outside the entrance to the parliament wearing only black pants.

The brawls were an ugly start to a new parliament apparently still controlled by Yanukovych's Regions Party, which claims to have won a majority in legislative elections on October 28.

The October polls were widely criticised by the international community, coming as Tymoshenko continues to serve a seven-year prison term for abuse of power that she argues is politically motivated.

The Ukrainian parliament is often the scene of scuffles with lawmakers throwing eggs and letting off smokebombs.

Two years ago several opposition deputies were badly injured in a bloody brawl prompted by the opening of a criminal probe into Tymoshenko that saw punches thrown and chairs hurled.

- AFP/de



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SC verdict on Mulayam's plea against probe in DA case on Thursday

NEW DELHI: The Supreme Court will pronounce tomorrow its verdict on Samajwadi Party supremo Mulayam Singh Yadav and his family members' plea for review of its order for CBI probe against them for allegedly amassing disproportionate assets.

A bench of Chief Justice Altamas Kabir and Justice H L Dattu, which had reserved its order on February 17 last year, will pronounce the verdict on review petition filed by Yadav, his sons Akhilesh and Prateek and daughter-in-law Dimple.

The apex court had ordered a CBI inquiry on March 1, 2007 into the alleged accumulation of disproportionate assets by Yadav family, on a public interest litigation (PIL) by an advocate, Vishwanath Chaturvedi, reportedly a Congress leader.

Deviating from the precedent of hearing review petitions in the judges' chambers, the bench had heard the petition in open court at Yadavs' request.

Seeking review of the apex court order, Yadav and his family members had submitted that there was no evidence against them who are being harassed by political adversaries.

They assailed the apex court's earlier order claiming it would "set a dangerous precedent" of allowing political opponents to file "false and frivolous" petitions against their detractors.

During the arguments, the Centre, while refraining from going into the merits of the allegations against the Yadavs, had cited a number of judicial pronouncements to drive home the point that the apex court has powers to order a CBI inquiry in "exceptional cases."

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Congress examines science behind HGH test for NFL


WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.


Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.


The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.


Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."


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Mall Gunman Wanted to Kill 'Total Strangers'













The masked gunman who opened fire in the crowded Clackamas Town Center mall in suburban Portland, Ore., killing two and seriously injuring a third before killing himself, was trying to "kill as many people as possible."


The shooter, wearing a white hockey mask, black clothing and a bullet proof vest, tore through the mall just before 3:30 p.m. Tuesday, entering through a Macy's store and heading to the food court and public areas spraying bullets, according to witness reports.


Police have identified the gunman, but have not released his name, Sheriff Craig Roberts told "Good Morning America."


"We have been able to identify the shooter over this last night," Roberts said. "I believe, at least from the information that's been provided to me at this point in time, it really was a killing of total strangers. To my knowledge at this point in time he was really trying, I think, to kill as many people as possible."


Police have not released the names of the shooter's victims. Clackamas County Sheriff's Department Lt. James Rhodes said authorities are in the process of notifying victims' families.


The injured victim, identified by hospital officials as Kristina Shevchenko, has been taken to a hospital, according to Roberts.


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Nadia Telguz, who said she was a friend of Shevchenko, told ABC News affiliate KATU-TV in Portland that the woman was expected to recover.


"My friend's sister got shot," Teleguz told KATU. "She's on her way to (Oregon Health and Science University Hospital). They're saying she got shot in her side and so it's not life-threatening, so she'll be OK."


Witnesses from the shooting rampage said that a young man who appeared to be a teenager, ran through the upper level of Macy's to the mall food court, firing multiple shots, one right after the other, with what is believed to be a black, semi-automatic rifle.


By 4:40 p.m., police reported finding a group of people hiding in a storeroom. In a surreal moment, even the mall Santa was seen running for his life.


"I didn't know where the gunman was, so I decided to kind of eased my way out," said the mall Santa, who the AP identified as 68-year-old Brance Wilson.


More than 10,000 shoppers were at the mall during the day, according to police. Roberts said that officers responded to the scene of the shooting within minutes, and four SWAT teams swept the 1.4 million-square-foot building searching for the shooter. He was eventually found dead, an apparent suicide.


"I can confirm the shooter is dead of an apparent self-inflicted gunshot wound," Rhodes said. "By all accounts there were no rounds fired by law enforcement today in the mall."


Roberts said more than 100 law enforcement officers responded to the shooting, and the FBI and Bureau of Alcohol, Tobacco and Firearms are working with local agencies to trace the shooter's weapon.


Cell phone video shot at the scene shows the chaos soon after the shooting. When police arrived they were met head on by terrified shoppers, children and employees streaming out. Customers, even a little girl, were being lead out with their hands up.


"I think a variety of things happened that I think this could have been much, much worse," Roberts told "GMA." "And to give you some ideas, we got the call at 3:29, we had someone on scene within a minute, 30 seconds.






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North Korea launches rocket , raising nuclear arms stakes


SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.


"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".


The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.


North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.


North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.


"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.


The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.


"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.


U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.


Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.


A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".


"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.


"STUMBLING BLOCK"


China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.


On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.


"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."


A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.


Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.


"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.


Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.


Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.


It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.


It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.


"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.


"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."


The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)



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