Japan presses Algeria for answers as toll hits nine






ALGIERS: A senior Japanese official met Algeria's prime minister on Wednesday to press for an explanation of the gas plant siege, as Tokyo confirmed the deaths of two more nationals, taking its toll to nine.

Senior Vice Foreign Minister Shunichi Suzuki arrived aboard a government jet that is to repatriate the bodies of those known to have been killed in the hostage crisis, along with the seven Japanese who survived.

Tokyo announced late Wednesday that it knew for sure that nine Japanese were killed after Islamist gunmen overran the desert facility. One Japanese citizen remains unaccounted for.

"Unfortunately, we have been able to confirm two more deaths," said Chief Cabinet Secretary Yoshihide Suga. "The Japanese government expresses sincere condolences to the families and people concerned."

"The use of violence cannot be tolerated for any reason. We firmly condemn acts of terror," he said adding the government would do its utmost to confirm the fate of the final missing person.

Seventeen Japanese were at the facility in In Amenas when jihadists struck last Wednesday at the start of a four-day siege that left dozens of foreigners dead. Seven of them made it to safety.

Suzuki carried a letter to Algerian President Abdelaziz Bouteflika from Japan's Prime Minister Shinzo Abe, Suga told reporters in Tokyo earlier.

As well as Prime Minister Abdelmalek Saleki, Suzuki also met Foreign Minister Mourad Medelci, Japan's Kyodo News reported, citing Tokyo's foreign ministry.

Japan has asked Algeria to fully investigate events at the gas plant and exactly how individuals died, Suga said in Tokyo.

"Algeria has promised to cooperate as much as possible," he said.

Algeria has said 37 foreigners of eight different nationalities and an Algerian were killed in the siege, which ended on Saturday.

Several people are still missing and the bodies of others are so badly charred that they have not been identified.

Wednesday's visit came as it emerged that Britain, Japan, the United States and other countries whose nationals were caught up in the events at the In Amenas plant issued a joint demarche to Algeria last Friday.

A demarche is a formal diplomatic move in which a country's stance is conveyed in person -- rather than by note -- to another government.

In a conference telephone call, vice foreign minister Minoru Kiuchi told foreign minister Medelci that Tokyo wanted Algiers to do all it could to protect captives.

"Japan is strongly concerned about acts that put the lives of the hostages at risk, and it is regrettable that the Algerian government pressed military rescue operations," he said, according to the foreign ministry.

Japan was among the more forthright of nations as the hostage crisis unfolded, summoning Algiers' ambassador to demand answers and to push for military restraint as armed forces surrounded the plant.

The Japanese plane's arrival in Algiers came as Tokyo announced it was shutting its embassy in neighbouring Mali, evacuating staff and urging its nationals there to leave because of the deteriorating security situation.

The kidnappers claimed they launched their attack in protest at Algeria's complicity in a French military campaign against Islamists in Mali.

The Japanese death toll in Algeria -- the highest in a terror attack since Al-Qaeda crashed airliners into New York's Twin Towers when 24 Japanese died -- has shaken a country not accustomed to its citizens being made targets abroad.

There has been blanket media coverage of events half a world away and anguished demands for more to be done to protect Japanese working in trouble spots, including beefing up spy networks.

Kyodo on Wednesday said Suga indicated Tokyo's willingness to consider increasing the number of defence attaches at Japanese embassies to strengthen the country's ability to gather information.

"I am aware of the need. We need to think about the most effective (crisis-response) measures," Suga said.

-AFP/ac



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Bigger iPhone still coming -- just not this year, report says




CNET

iPhone 5



(Credit:
CNET)


In an about-face, Digitimes -- the purveyor of numerous Apple rumors, some of which have been true -- says not to get your hopes up for an even larger version of the iPhone. At least not this year.


The tech news site says Apple's still working on one, but that it won't come in the second half of this year, as it excitedly reported earlier this month. That report made waves after claiming Apple was working on a low-cost model with an even larger screen than the 4-inch display found on the
iPhone 5.


"Previously it was said that Apple would release a lower-cost version of its iPhone with a bigger screen in 2013," Digitimes said this morning. "But the sources claimed that Apple is indeed developing an iPhone with a bigger screen, but that will not be among the models to be lancuhed [sic] this year."


The reasoning behind the move, the updated report offers, is supply of the screens with larger displays creating possible production issues.


The report follows one from Chinese language Commercial Times yesterday, which said Apple has a low-cost, 4.8-inch iPhone model in the hopper dubbed the "iPhone Math." Jefferies analyst Peter Misek, who watches Apple's supply chain closely, put out a note to investors this morning agreeing with that possibility.


"Our checks agree three different models are scheduled for launch in 2013 but disagree on the details," Misek said. "We believe a lower-cost 4.3" iPhone and multi-color 4" iPhone 5S will launch in June/July. Additionally, we believe a 4.8" iPhone model is scheduled for the end of October. We do not know what this phone will be called and think 'Math' might be a mistranslation or a code name."


Apple currently sells three different models of the iPhone, but has only ever introduced one model at a time, choosing to sell the older model at a lower price. There were numerous rumors ahead of the
iPhone 4S in 2011 that Apple planned to change that with the simultaneous release of a 4S and the 5, something that proved to be wrong.


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U.K. grandma gets death sentence in Bali

BALI An Indonesian court sentenced a British grandmother to death on Tuesday for smuggling cocaine worth $2.5 million in her suitcase onto the resort island of Bali — even though prosecutors had sought only a 15-year sentence.

Lindsay June Sandiford, 56, wept when judges handed down the sentence and declined to speak to reporters on her way back to prison, covering her face with a floral scarf. She had claimed in court that she was forced into taking the drugs into the country by a gang that was threatening to hurt her children.

Indonesia, like many Asian countries, is very strict on drug crimes, and most of the more than 40 foreigners on its death row were convicted of drug charges.

Sandiford's lawyer said she would appeal. Appeals take several years, and the country has not carried out an execution since 2008, when 10 people were put to death.

A verdict is expected in the trial of Sandiford's alleged accomplice, British man Julian Anthony Pounder, on Wednesday. He is accused of receiving the drugs in Bali, which has a busy bar and nightclub scene where party drugs such as cocaine and ecstasy are bought and sold between foreigners. Two other British citizens and an Indian have already been convicted and sentenced to prison in connection with the bust.

In its verdict, a judge panel at the Denpasar District Court concluded that Sandiford had damaged the image of Bali as a tourism destination and weakened the government's drug prevention program.

"We found no reason to lighten her sentence," said Amser Simanjuntak, who headed the judicial panel.

Prosecutors had been seeking a 15-year prison sentence for Sandiford, who was arrested in May when customs officers at Bali's airport discovered 8.4 pounds of cocaine in the lining of her luggage.

State prosecutor Lie Putra Setiawan told reporters that the verdict was "appropriate," explaining that prosecutors had been demanding 15 years because of Sandiford's age.

Indonesia has 114 prisoners on death row, according to a March 2012 study by Australia's Lowy Institute for International Policy. Five foreigners have been executed since 1998, all for drug crimes, according to the institute.

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Group Finds More Fake Ingredients in Popular Foods













It's what we expect as shoppers—what's in the food will be displayed on the label.


But a new scientific examination by the non-profit food fraud detectives the U.S. Pharmacopeial Convention (USP), discovered rising numbers of fake ingredients in products from olive oil to spices to fruit juice.


"Food products are not always what they purport to be," Markus Lipp, senior director for Food Standards for the independent lab in Maryland, told ABC News.


In a new database to be released Wednesday, and obtained exclusively by ABC News today, USP warns consumers, the FDA and manufacturers that the amount of food fraud they found is up by 60 percent this year.


USP, a scientific nonprofit that according to their website "sets standards for the identity, strength, quality, and purity of medicines, food ingredients, and dietary supplements manufactured, distributed and consumed worldwide" first released the Food Fraud Database in April 2012.


The organization examined more than 1,300 published studies and media reports from 1980-2010. The update to the database includes nearly 800 new records, nearly all published in 2011 and 2012.


Among the most popular targets for unscrupulous food suppliers? Pomegranate juice, which is often diluted with grape or pear juice.


"Pomegranate juice is a high-value ingredient and a high-priced ingredient, and adulteration appears to be widespread," Lipp said. "It can be adulterated with other food juices…additional sugar, or just water and sugar."






Lipp added that there have also been reports of completely "synthetic pomegranate juice" that didn't contain any traces of the real juice.


USP tells ABC News that liquids and ground foods in general are the easiest to tamper with:

  • Olive oil: often diluted with cheaper oils

  • Lemon juice: cheapened with water and sugar

  • Tea: diluted with fillers like lawn grass or fern leaves

  • Spices: like paprika or saffron adulterated with dangerous food colorings that mimic the colors


Milk, honey, coffee and syrup are also listed by the USP as being highly adulterated products.


Also high on the list: seafood. The number one fake being escolar, an oily fish that can cause stomach problems, being mislabeled as white tuna or albacore, frequently found on sushi menus.


National Consumers League did its own testing on lemon juice just this past year and found four different products labeled 100 percent lemon juice were far from pure.


"One had 10 percent lemon juice, it said it had 100 percent, another had 15 percent lemon juice, another...had 25 percent, and the last one had 35 percent lemon juice," Sally Greenberg, Executive Director for the National Consumers League said. "And they were all labeled 100 percent lemon juice."


Greenberg explains there are indications to help consumers pick the faux from the food.


"In a bottle of olive oil if there's a dark bottle, does it have the date that it was harvested?" she said. While other products, such as honey or lemon juice, are more difficult to discern, if the price is "too good to be true" it probably is.


"$5.50, that's pretty cheap for extra virgin olive oil," Greenberg said. "And something that should raise some eyebrows for consumers."


Many of the products USP found to be adulterated are those that would be more expensive or research intensive in its production.
"Pomegranate juice is expensive because there is little juice in a pomegranate," Lipp said.






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Israel goes to polls, set to re-elect Netanyahu


JERUSALEM (Reuters) - Israelis voted on Tuesday in an election that is expected to hand hawkish Prime Minister Benjamin Netanyahu a third term, opening the way for a showdown with Iran and bolstering opponents of Palestinian statehood.


However, Netanyahu's own Likud party, running alongside the ultra-nationalist Yisrael Beitenu group, looks set to win fewer seats than in the previous parliament, with opinion polls showing a surge in support for the far-right Jewish Home party.


By 4 p.m. (9.00 a.m. ET), six hours before polls close, the Israeli election committee said turnout was 46.6 percent, up from 41.9 percent at the same time in 2009 and the highest level since 1999, when Netanyahu, serving his first term as prime minister, was defeated by then-Labour Party leader Ehud Barak.


Ahead of Tuesday's ballot, analysts had speculated that high turnout would benefit center-left parties that have sometimes struggled to motivate their voter base.


In a sign of concern over a possible centrist surge, Netanyahu urged his supporters to go to the polls.


"Go vote, and then go back to the cafes. Go vote so we can lead Israel because ... we don't really know how all of this is going to end," he said in public remarks at Likud party headquarters in Tel Aviv.


Political sources said Netanyahu, worried by his apparent fall in popularity, might approach center-left parties after the ballot in an effort to broaden his coalition and present a more moderate face to Washington and other concerned allies.


British Foreign Secretary William Hague warned Israel it was losing international support, saying prospects for a two-state solution to the Israeli-Palestinian conflict were almost dead because of expanding Jewish settlement in occupied territory.


Some 5.66 million Israelis are eligible to cast a ballot, with polling stations closing at 10 p.m. (3.00 p.m. ET). Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks.


The lackluster election campaign failed to focus on any single issue and with a Netanyahu victory predicted by every opinion poll, the two main political blocs seemed to spend more time on internal feuding than confronting each other.


"There is a king sitting on the throne in Israel and I wanted to dethrone him, but it looks like that won't happen," said Yehudit Shimshi, a retired teacher voting in central Israel in balmy winter weather that drew out the electorate.


No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies on board to control the 120-seat Knesset.


The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to seek out the surprise star of the campaign, self-made millionaire Naftali Bennett, who heads the Jewish Home party.


Bennett has ruled out any peace pact with the Palestinians and calls for the annexation of much of the occupied West Bank.


His youthful dynamism has struck a chord amongst Israelis, disillusioned after years of failed peace initiatives, and has eroded Netanyahu's support base.


The Likud has also shifted further right in recent months, with hardline candidates who reject the so-called two-state solution dominating the top of the party list.


"TRENDY PARTIES"


Surveys suggest Bennett may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday - 10 less than the two parties won in 2009 when they ran separate lists.


Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.


"Even if there are more trendy parties, there is one party that has a proven record," he said on Tuesday.


Amongst the new parties standing for the first time in an election were Yesh Atid (There is a Future), a centrist group led by former television host Yair Lapid, seen winning 13 seats.


"All our lives we voted Likud, but today we voted for Lapid because we want a different coalition," said Ahuva Heled, 55, a retired teacher voting with her husband north of Tel Aviv.


Lapid has not ruled out joining a Netanyahu cabinet, but is pushing hard for ultra-Orthodox Jews to do military service - a demand fiercely rejected by some allies of the prime minister.


Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially hooked up with Netanyahu, promising to promote peace negotiations with the Palestinians.


U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have lain in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.


Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.


That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.


IRAN THREAT


Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.


Netanyahu has said the turbulence - which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt - shows the importance of strengthening national security.


If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.


Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.


The issue has barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.


One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.


Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.


(Additional reporting by Ori Lewis, Jeffrey Heller and Tova Cohen; Editing by Alistair Lyon)



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SGX's Q2 net profit rises 17% to S$76m






SINGAPORE : Rising interest in derivatives trading helped lift earnings for the Singapore Exchange (SGX) last quarter.

Asia's second-largest bourse operator reported a 17 per cent on-year rise in second-quarter net profit to S$76 million.

It also attracted a large number of new bond listings in the same quarter.

Derivatives trading has been the star performer in SGX.

Over the October to December quarter, derivatives daily average volume on SGX hit a record of 358,532 contracts, up 30 per cent on-year.

This was supported by rising trading interests in China A50 futures and Japan Nikkei 225 options.

Not to be undone, the securities market performed well too.

Its daily average volume rose 8 per cent for the quarter to hit a trading value of S$1.2 billion.

This translates to a revenue of S$58 million for the securities business segment.

SGX said the better performance was due to improvements in investor sentiment following stability over the Europe debt situation and improved US economy.

Magnus Bocker, chief executive officer of Singapore Exchange, said: "We should remember the enormous amount of liquidity in the market. Not so much in the equity market, but actually more in the fixed income and currency markets, and with chasing yields and lot of very successful and growing companies, I think we can all expect this sentiment to continue. I think we can expect more flows into securities."

Some analysts are bullish on SGX's prospects going forward.

The said the improved investment climate globally may benefit the exchange operator.

Ken Ang, investment analyst at Phillip Securities Research, said: "SGX is very well placed to benefit from this increasing attractiveness of the equity market and therefore resulting in increase in trading value."

SGX attracted eight new listings in its second quarter - raising S$798.9 million.

While the number seems small, it came amid declines in the global initial public offering (IPO) market.

In 2012, global IPO volumes fell 27 per cent, with the lowest level of funds raised since 2009.

Kenneth Ng, head of Singapore research at CIMB Research, said: "I think while that (derivative) is great and that diversified the revenue of SGX, SGX still has a rather pertinent problem of trying to increase the security turnover velocity and value by retail initiatives, attracting listings and so forth."

Apart from seeking more IPOs, SGX also attracted some 90 new bond listings, raising S$39.7 billion for the quarter.

- CNA/ms



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RIM CEO says licensing of BlackBerry 10 'conceivable'



RIM CEO Thorsten Heins.



(Credit:
James Martin/CNET)



Research In Motion will launch devices running BlackBerry 10 at the end of the month, but the handset maker is still playing with the idea of licensing its new operating system to other manufacturers.


When asked whether RIM might license the new platform as Microsoft did with Windows Phone, RIM CEO Thorsten Heins told German newspaper Die Welt that it's not out of the realm of possibility.


"Before you licensed the software, you must show that the platform has a large potential," he said, "First we have to fulfill our promises. If such proof, a licensing is conceivable."


Licensing would allow third-party hardware makers to put the new OS on non-RIM devices. RIM has a lot riding on BlackBerry 10, which the company hopes will reinvigorate the brand. After some delay, RIM is expected to unveil handsets fort the new platform next week in a multiple-city debut.

When asked about the delay, Heins said the company's goal was to create a solid platform that would last a decade.




"We have taken the time to build a platform that is future-proof for the next ten years," he said. "Our aim is not only to smartphones, but also to the use, for example, in
cars that will be in the future increasingly networked. We see with BlackBerry 10 completely new areas of growth."


The company has been struggling to bring back lost market share and sales for its once popular BlackBerry devices, but it's not having much luck in an industry ruled by Apple and
Android, which Google has had great success licensing to third-party hardware makers. The company announced a broad restructuring last year and is rumored to be considering a plan to split in two, separating its handset division from its messaging network and selling off the struggling BlackBerry hardware business

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Official: 3 Americans total died in Algeria attack

Updated at 12:32 p.m. ET

Two additional Americans were killed in last week's hostage standoff at a natural gas complex in Algeria, bringing the final U.S. death toll to three, a U.S. official told CBS News Monday.

Seven Americans made it out safely.

The family of Victor Lynn Lovelady told CBS affiliate KFDM-TV in Beaumont, Texas, Monday that the FBI informed them Saturday of his death.

Previously, two other deceased Americans were identified to CBS News as Frederick Buttaccio of Katy, Texas, near Houston, and Gordon Lee Rowan.

The FBI has recovered the bodies and notified all the victims' families.




Play Video


Algerian hostage crisis: Death toll now more than 80



Militants who attacked the Ain Amenas gas field in the Sahara had offered to release some of the captive Americans in exchange for the freedom of two prominent terror suspects jailed in the United States: Omar Abdel Rahman, a blind sheik convicted of plotting to blow up New York City landmarks and considered the spiritual leader of the 1993 World Trade Center bombing, and Aafia Siddiqui, a Pakistani scientist convicted of shooting at two U.S. soldiers in Afghanistan.

The Obama administration rejected the offer outright.

Last week's desert siege began Wednesday when Mali-based, al Qaeda-linked militants attempted to hijack two buses at the plant, were repelled, and then seized the gas refinery. They said the attack was retaliation for France's recent military intervention against Islamist rebels in neighboring Mali, but security experts argue it must have taken weeks of planning to hit the remote site.

Five Americans had been taken out of the country before Saturday's final assault by Algerian forces against the militants.

An Obama administration official told the Associated Press two further Americans survived the four-day crisis at an insecure oil rig at the facility. They were flown out to London on Saturday. The official spoke on condition of anonymity because he wasn't authorized to speak publicly about the matter.

Algeria says 38 hostages of all nationalities and 29 militants died in the standoff. Five foreign workers remain unaccounted for.

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President Obama Calls for 'Collective Action'













Invoking the nation's founding values, President Obama marked the start of his second term today with a sweeping call for "collective action" to confront the economic and social challenges of America's present and future.


"That is our generation's task, to make these words, these rights, these values -- of life, and liberty, and the pursuit of happiness -- real for every American," Obama said in an inaugural address delivered from the west front of the U.S. Capitol.


"Being true to our founding documents does not require us to agree on every contour of life; it does not mean we will all define liberty in exactly the same way, or follow the same precise path to happiness. Progress does not compel us to settle centuries-long debates about the role of government for all time," he said, giving nod to the yawning partisan divide.


"But it does require us to act in our time."


The call to action, on the eve of what's shaping up to be another contentious term with Republicans and Congress, aimed to reset the tone of debate in Washington and turn the page on the political battles of the past.






Pablo Martinez Monsivais/AP Photo











Inauguration 2013: President Obama's Opportunities Watch Video











Official Oath of Office 2013: President Obama Watch Video





"For now decisions are upon us, and we cannot afford delay. We cannot mistake absolutism for principle, or substitute spectacle for politics, or treat name-calling as reasoned debate," Obama said. "We must act, knowing that our work will be imperfect."


The address, lasting a little less than 20 minutes, laid out in broad terms Obama's vision for the next four years, alluding to looming policy debates on the war in Afghanistan, deficit reduction, immigration, and overhaul of Social Security and Medicare.


Obama also became the first president, at least in recent inaugural history, to make explicit mention of equality for gay and lesbian Americans. He made repeated mentions of "climate change," something no president has said from such a platform before.


The president stuck closely to his campaign themes, offering few new details of his policy proposals, however. Those are expected to come next month in the State of the Union address Feb. 12.


Hundreds of thousands packed the National Mall in chilly 40-degree temperatures and brisk wind to hear Obama's remarks and witness the ceremonial swearing-in. While the crowds were smaller than four years ago, the U.S. Park Police said the Mall reached capacity and was closed shortly before Obama took the podium.


Shortly before the address, Obama placed his left hand on the stacked personal Bibles belonging to President Abraham Lincoln and Dr. Martin Luther King Jr., and raised his right to repeat the oath administered by Supreme Court Chief Justice John Roberts.


"I, Barack Hussein Obama, do solemnly swear that I will faithfully execute the office of president of the United States," he said, "and will to the best of my ability, preserve, protect and defend the Constitution of the United States."


Obama and Biden were both officially sworn in during private ceremonies Sunday, Jan. 20, the date mandated by the Constitution for presidents to begin their terms.



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Algeria says 37 foreigners die in siege led by Canadian


ALGIERS (Reuters) - A total of 37 foreigners and an Algerian died at a desert gas plant and five are still missing after a four-day hostage-taking coordinated by a Canadian gunman, Algerian Prime Minister Abdelmalek Sellal said on Monday.


Sellal also told a news conference that 29 Islamists had been killed in the siege, which Algerian forces ended by storming the plant on Saturday, and three were taken alive. Most of the gunmen were from various states of north and west Africa.


With some bodies burned beyond recognition and Algerian forces still combing the sprawling site, some details were still unclear or at odds with figures from other governments.


The siege has shaken confidence in the security of Algeria's vital energy industry and drawn attention to Islamist militancy across the Sahara, where France has sent troops to neighboring Mali to fight rebels who have obtained weaponry from Libya.


Of the 38 dead captives, out of a total workforce of some 800 at the In Amenas gas facility, seven were still unidentified but assumed to be foreigners, Algerian premier Sellal said.


Citizens of nine countries died, he said, among them seven Japanese, six Filipinos, two Romanians, an American, a Frenchman and four Britons. Britain said three Britons were dead and three plus a London-based Colombian were missing and believed dead.


Norway said the fate of five of its citizens was unclear; in addition to seven Japanese dead, Tokyo said three were missing.


An Algerian security source had earlier told Reuters that documents found on the bodies of two militants had identified them as Canadians: "A Canadian was among the militants. He was coordinating the attack," Sellal said, adding that the raiders had threatened to blow up the gas installation.


That Canadian's name was given only as Chedad. Algerian officials have also named other militants in recent days as having leadership roles among the attackers. Veteran Islamist Mokhtar Belmokhtar claimed responsibility on behalf of al Qaeda.


In Ottawa, Canada's foreign affairs department said it was seeking information, but referred to the possible involvement of only one Canadian.


The jihadists had planned the attack two months ago in neighboring Mali, Sellal added. During the siege, from which he said they had hoped to take foreign hostages to Mali, the kidnappers had demanded France end its military operation.


Sellal said that initially the raiders in Algeria had tried to hijack a bus carrying foreign workers to a nearby airport and take them hostage. "They started firing at the bus and received a severe response from the soldiers guarding the bus," he said. "They failed to achieve their objective, which was to kidnap foreign workers from the bus."


He said special forces and army units were deployed against the militants, who had planted explosives in the gas plant with a view to blowing up the facility. Normally producing 10 percent of Algeria's natural gas, it was shut down during the incident.


The government now aims to reopen it this week.


One group of militants had tried to escape in some vehicles, each of which also was carrying three or four foreign workers, some of whom had explosives attached to their bodies.


After what he called a "fierce response from the armed forces", the raiders' vehicles crashed or exploded and one of their leaders was among those killed.


LIBYAN NUMBER PLATES


Sellal said the jihadists who staged the attack last Wednesday had crossed into the country from neighboring Libya, after arriving there from Islamist-held northern Mali via Niger.


An Algerian newspaper said they had arrived in cars painted in the colors of state energy company Sonatrach but registered in Libya, a country awash with arms since Western powers backed a revolt to bring down Muammar Gaddafi in 2011.


The raid has exposed the vulnerability of multinational-run oil and gas installations in an important producing region and pushed the growing threat from Islamist militant groups in the Sahara to a prominent position in the West's security agenda.


Algerian President Abdelaziz Bouteflika has ordered an investigation into how security forces failed to prevent the attack, the daily El Khabar said.


Algerian Tahar Ben Cheneb - leader of a group called the Movement of Islamic Youth in the South who was killed on the first day of the assault - had been based in Libya where he married a local woman two months ago, it said.


ONE-EYED JIHADIST


Belmokhtar - a one-eyed jihadist who fought in Afghanistan and Algeria's civil war of the 1990s when the secular government fought Islamists - tied the desert attack to France's intervention across the Sahara against Islamist rebels in Mali.


"We in al Qaeda announce this blessed operation," he said in a video, according to Sahara Media, a regional website. About 40 attackers participated in the raid, he said, roughly matching the government's figures for fighters killed and captured.


Belmokhtar demanded an end to French air strikes against Islamist fighters in neighboring Mali. These began five days before the fighters swooped before dawn and seized a plant that produces 10 percent of Algeria's natural gas exports.


U.S. and European officials doubt such a complex raid could have been organized quickly enough to have been conceived as a direct response to the French military intervention. However, the French action could have triggered an operation that had already been planned.


The group behind the raid, the Mulathameen Brigade, threatened to carry out more such attacks if Western powers did not end what it called an assault on Muslims in Mali, according to the SITE service, which monitors militant statements.


In a statement published by the Mauritania-based Nouakchott News Agency, the hostage takers said they had offered talks about freeing the captives, but the Algerian authorities had been determined to use military force. Sellal blamed the raiders for the collapse of negotiations.


BLOODY SIEGE


The siege turned bloody on Thursday when the Algerian army opened fire, saying fighters were trying to escape with their prisoners. Survivors said Algerian forces blasted several trucks in a convoy carrying both hostages and their captors.


Nearly 700 Algerian workers and more than 100 foreigners escaped, mainly on Thursday when the fighters were driven from the residential barracks. Some captors remained holed up in the industrial complex until Saturday when they were overrun.


The bloodshed has strained Algeria's relations with its Western allies, some of which have complained about being left in the dark while the decision to storm the compound was being taken.


Nevertheless, Britain and France both defended the military action by Algeria, the strongest military power in the Sahara and an ally the West needs in combating the militants.


"This would have been a most demanding task for security forces anywhere in the world and we should acknowledge the resolve shown by the Algerians in undertaking it," British Prime Minister David Cameron told parliament on Monday.


The raid on the plant, which was home to expatriate workers from Britain's BP, Norway's Statoil, Japanese engineering firm BGC Corp and others, exposed the vulnerability of multinational oil operations in the Sahara.


However, Algeria is determined to press on with its energy industry. Oil Minister Youcef Yousfi visited the site and said physical damage was minor, state news service APSE reported. The plant would start up again in two days, he said.


Algeria, scarred by the civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, insisted from the start of the crisis there would be no negotiation in the face of terrorism. France especially needs close cooperation from Algeria to crush Islamist rebels in northern Mali.


In a reference to Western concerns that the Sahara and the dry grasslands of the Sahel to its south may become a haven for its Islamist enemies as Afghanistan was under the Taliban before 2001, Sellal said Algeria would not become "Sahelistan".


Cameron said Islamist threats to Britain from Afghanistan and Pakistan had diminished, compared with four years ago: "But at the same time," he said, "Al Qaeda franchises have grown in Yemen, Somalia and parts of North Africa."


(Additional reporting by Balazs Koranyi in Oslo, William Maclean in Dubai, d Daniel Flynn in Dakar, David Ljunggren in Ottawa and Ed Klamann in Tokyo; Writing by David Stamp; Editing by Giles Elgood and Alastair Macdonald)



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