Xi Jinping takes helm of China amid reform calls

BEIJING (AP) — Xi Jinping became China's new leader Thursday, assuming the top posts in the Communist Party and the powerful military in a political transition unbowed by scandals, a slower economy and public demands for reforms.

Xi was introduced as the new party general secretary at Beijing's Great Hall of the People a day after the close of a weeklong party congress that underlined the communists' determination to remain firmly in power. He and the six other men who will form China's new collective leadership, all dressed in dark suits, walked in line onto the red-carpeted stage.

Xi's appointment as chairman of the military commission, announced by the state Xinhua News Agency, marked a break from the recent tradition of retiring leaders holding onto the post for a transitional period to extend their influence. It meant outgoing leader Hu Jintao would relinquish all positions of power, giving Xi broader leeway to consolidate his authority.

The once-a-decade leadership change was carefully choreographed. It became clear Xi would lead China five years ago, when he was appointed to the Standing Committee — the nation's apex of power — as the highest-ranked member who would not be of retirement age this year.

Xi's colleagues in the new Standing Committee are Li Keqiang, the presumptive premier and chief economic official; Vice Premier Zhang Dejiang; Shanghai party secretary Yu Zhengsheng; propaganda chief Liu Yunshan; Vice Premier Wang Qishan; and Tianjin party secretary Zhang Gaoli.

In a speech broadcast live on Chinese state TV and worldwide, Xi said, "We shall do everything we can to live up to your trust and fulfill our mission."

"There are also many pressing problems within the party that need to be resolved, particularly corruption," Xi said. "We must make every effort to solve these problems. The whole party must stay on full alert."

The other six leaders were expressionless with their arms at their sides during Xi's 20-minute speech, then smiled to the audience when they walked off stage.

The son of a party elder, and vice president for the past five years, Xi will lead the world's No. 2 economy and newest diplomatic and military power amid increasingly vocal calls for economic and political reform — including from within the 82-million-member party itself.

At ease in front of people and with colleagues, Xi takes over the party leadership from the stiff, technocratic Hu, and is expected to assume the largely ceremonial presidency in March.

The ascent of Xi and Li, the premier-in-waiting, represents a generational change. Though they spent their youths laboring on farms, their university years and early careers took place when China was casting off the planned economy and turning to the free market and to the West. They are thought to be more open to new ideas than their predecessors, but nonetheless bound by China's consensus-oriented politics.

Thursday marked only the second tidy transition since communist rule was established in 1949, despite a turbulent political year that saw the downfall in a murder and corruption scandal of rising populist Bo Xilai, who had been seen as a key contender for the new leadership slate.

The outgoing Hu oversaw a decade of turgid economic growth and urban development and tried to make concern for ordinary people the hallmark of his tenure, but he also will be remembered for harshly stifling dissent and rolling back civil liberties.

At the same time, increased social freedoms have created a generation of Chinese who are more aware of their rights and more vocal about demanding them.

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Verizon says 1.4 million customers back on its fiber optic network

(Reuters) – Verizon Communications said fiber optic services have been restored to more than 1.4 million customers hurt by Hurricane Sandy.

The provider of telephone, Internet and television services said on November 1 that it may take another two weeks to restore telecommunication services for its customers after flooding and power outages knocked out services.

The company said it completed 364,000 repairs across the mid-Atlantic and northeast regions.

Verizon said it will provide credits for landline customers and fix equipment damaged due to the hurricane.

Verizon shares were up at $ 42.39 after the bell on Wednesday. They closed at $ 42.24 on the New York Stock Exchange.

(Reporting By Pallavi Ail in Bangalore; Editing by Maju Samuel)

Internet News Headlines – Yahoo! News

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Erdrich wins National Book Award for fiction

NEW YORK (AP) — The National Book Awards on Wednesday honored both longtime writers and new authors, from Louise Erdrich for "The Round House" to Katherine Boo for her debut work, "Beyond the Beautiful Forevers."

Erdrich, 58, has been a published and highly regarded author for nearly 30 years but had never won a National Book Award until being cited Wednesday for her story about an Ojibwe boy and his quest to avenge his mother's rape. A clearly delighted and surprised Erdrich, who's part Ojibwe, spoke in her tribal tongue and then switched to English as she dedicated her fiction award to "the grace and endurance of native people."

Boo's nonfiction book, set in a Mumbai slum, also is a story of a boy and his harsh and illuminating education in the consequences of crime or perceived crime. The author, a Pulitzer Prize-winning journalist currently on staff with The New Yorker, said she was grateful for the chance to live in a world she "didn't know" and for the chance to tell the stories of those otherwise ignored. She praised a fellow nominee and fellow Pulitzer-winning reporter, the late Anthony Shadid, for also believing in stories of those without fame or power.

Poetry winner David Ferry is a year older than one of the night's honorary recipients, Elmore Leonard. Ferry, 88, won for "Bewilderment: New Poems and Translations," a showcase for his versatile style. He fought back tears as he confided that he thought there was a chance for winning because he "was so much older" than the other nominees. He called the award a "pre-posthumous" honor.

The other competitive prize Wednesday went to William Alexander, whose "Goblin Secrets" won for young people's literature.

Alexander quoted fellow fantasy writer Ursula Le Guin in highlighting the importance of stories for shaping kids' imaginations and making the world a larger place than the one they live in.

"We have to remember that," Alexander said.

The ceremony went smoothly even though Superstorm Sandy badly damaged the offices of the award's organizer, the National Book Foundation, whose staffers had to work with limited telephone and mail access.

Winners, chosen by panels of fellow writers, each received $10,000. Judges looked through nearly 1,300 books.

Honorary prizes were given to Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Who's who in the Petraeus scandal

What started out as a leisurely stroll through the Philadelphia Museum of Art on Nov. 11 with his girlfriend, quickly turned into quite a surreal experience for Max Galuppo, 20, of Bloomsbury, N.J. Galuppo, a Temple University student, found his doppelganger in a 16th century...

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China's Communist Party conclave nearly finished

BEIJING (AP) — China's Communist Party was bringing its pivotal conclave to a close in largely choreographed steps Wednesday, a day before unveiling its leaders for the coming decade.

President Hu Jintao is expected to step down as party chief in favor of the anointed successor, Vice President Xi Jinping, in what would be only the second orderly transfer of power in 63 years of communist rule. The new leaders of the world's second-largest economy will face slowing growth, rising unrest among increasing assertive citizens and delicate relations with neighboring countries.

The party's 2,200-plus delegates filed into Beijing's Great Hall of the People in the morning to select members of the Central Committee, a panel of a few hundred people that approves leadership positions and sets broad policy goals, ahead of the scheduled close of the congress later Wednesday.

But the next lineup in China's apex of power, the Politburo Standing Committee, will be announced only on Thursday. Though congress and Central Committee delegates have some influence over leadership decisions, most of the lineup is decided among a core group of the most powerful party members and elders.

The congress votes are "fully democratic" but "there is a degree of inevitability," said party delegate Song Guofeng of Liaoning province as he entered the hall. "We need to have continuity in leadership to carry on. They are already in the leadership core. The stability of the party and of the county is important."

The voting concluded in the late morning, and the state Xinhua News Agency said in a brief report that Xi and premier-in-waiting Li Keqiang had been voted onto the Central Committee — an expected result.

Hu and senior leaders mostly in their late 60s are handing over power to Xi, 59, and colleagues of his generation over the next several months. Li, currently vice premier, already was tapped five years ago to be the country's next premier, China's top economic official. But other top positions were up for grabs.

China's leadership transitions are always occasions for fractious backroom bargaining, but this one has been further complicated by scandals that have fed public cynicism that their leaders are more concerned with power and wealth than government.

In recent months, Bo Xilai, a senior politician seen as a rising star, was purged after his aide exposed that his wife murdered a British businessman. An ally of Hu's was sidelined after his son died in the crash of a Ferrari he shouldn't have been able to afford. And foreign media recently reported that relatives of Xi and outgoing Premier Wen Jiabao had amassed vast wealth. The scandals have weakened Hu, on whose watch they occurred.

The congress is a largely ceremonial gathering of representatives — mostly carefully selected from the national and provincial political and military elite — who have met to endorse a work report delivered by Hu at the opening a week ago. The real deal-making for the top positions on the Standing Committee is done behind the scenes by the true power-holders.

Aside from appointing Central Committee members, delegates assembled inside the Great Hall of the People were tasked with selecting the membership of the party's internal corruption watchdog, the Central Discipline Inspection Committee, and with voting on amendments to the party's charter.

After the congress ends, the Central Committee meets Thursday to select the next Politburo and from that, the Politburo Standing Committee, largely on the advice of influential leaders.

The leaders also will select new members of the party's Central Military Commission, which oversees the 2.3 million-member People's Liberation Army. It is unclear if Hu will relinquish his position at the head of the commission or hold on to it for a period after retirement, as past leaders have, to retain influence.

Hu will remain president until March.

The next cohort of leaders face daunting challenges, including efforts to pull the country's economy into a recovery from a sharp downturn, tense territorial disputes with Japan and other neighbors and the demands of a new middle class and millions of rural migrants for a better life.

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is "relieved that this painful allegation has been put to rest." He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces "Sesame Street" in New York, soon followed by saying, "We are happy that Kevin can move on from this unfortunate episode."

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from "Sesame Street" in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop "to deal with this false and defamatory allegation."

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of "Sesame Street."

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, "My Life as a Furry Red Monster," and he was the subject of the 2011 documentary "Being Elmo: A Puppeteer's Journey."

He has won 23 daytime Emmy awards and one prime-time Emmy.

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Online:

http://www.sesamestreet.org

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British medical journal slams Roche on Tamiflu

LONDON (AP) — A leading British medical journal is asking the drug maker Roche to release all its data on Tamiflu, claiming there is no evidence the drug can actually stop the flu.

The drug has been stockpiled by dozens of governments worldwide in case of a global flu outbreak and was widely used during the 2009 swine flu pandemic.

On Monday, one of the researchers linked to the BMJ journal called for European governments to sue Roche.

"I suggest we boycott Roche's products until they publish missing Tamiflu data," wrote Peter Gotzsche, leader of the Nordic Cochrane Centre in Copenhagen. He said governments should take legal action against Roche to get the money back that was "needlessly" spent on stockpiling Tamiflu.

Last year, Tamiflu was included in a list of "essential medicines" by the World Health Organization, a list that often prompts governments or donor agencies to buy the drug.

Tamiflu is used to treat both seasonal flu and new flu viruses like bird flu or swine flu. WHO spokesman Gregory Hartl said the agency had enough proof to warrant its use for unusual influenza viruses, like bird flu.

"We do have substantive evidence it can stop or hinder progression to severe disease like pneumonia," he said.

In the U.S., the Centers for Disease Control and Prevention recommends Tamiflu as one of two medications for treating regular flu. The other is GlaxoSmithKline's Relenza. The CDC says such antivirals can shorten the duration of symptoms and reduce the risk of complications and hospitalization.

In 2009, the BMJ and researchers at the Nordic Cochrane Centre asked Roche to make all its Tamiflu data available. At the time, Cochrane Centre scientists were commissioned by Britain to evaluate flu drugs. They found no proof that Tamiflu reduced the number of complications in people with influenza.

"Despite a public promise to release (internal company reports) for each (Tamiflu) trial...Roche has stonewalled," BMJ editor Fiona Godlee wrote in an editorial last month.

In a statement, Roche said it had complied with all legal requirements on publishing data and provided Gotzsche and his colleagues with 3,200 pages of information to answer their questions.

"Roche has made full clinical study data ... available to national health authorities according to their various requirements, so they can conduct their own analyses," the company said.

Roche says it doesn't usually release patient-level data available due to legal or confidentiality constraints. It said it did not provide the requested data to the scientists because they refused to sign a confidentiality agreement.

Roche is also being investigated by the European Medicines Agency for not properly reporting side effects, including possible deaths, for 19 drugs including Tamiflu that were used in about 80,000 patients in the U.S.

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Online:

www.bmj.com.tamiflu/

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Probe shows federal power to access email

WASHINGTON (AP) — Your emails are not nearly as private as you think.

The downfall of CIA Director David Petraeus demonstrates how easy it is for federal law enforcement agents to examine emails and computer records if they believe a crime was committed. With subpoenas and warrants, the FBI and other investigating agencies routinely gain access to electronic inboxes and information about email accounts offered by Google, Yahoo and other Internet providers.

"The government can't just wander through your emails just because they'd like to know what you're thinking or doing," said Stewart Baker, a former assistant secretary at the Department of Homeland Security and now in private law practice. "But if the government is investigating a crime, it has a lot of authority to review people's emails."

Under the 1986 Electronic Communications Privacy Act, federal authorities need only a subpoena approved by a federal prosecutor — not a judge — to obtain electronic messages that are six months old or older. To get more recent communications, a warrant from a judge is required. This is a higher standard that requires proof of probable cause that a crime is being committed.

Public interest groups are pressing Congress for the law to be updated because it was written a quarter-century ago when most emails were deleted after a few months because the cost of storing them indefinitely was prohibitive. Now, "cloud computing" services provide huge amounts of inexpensive storage capacity. Other technological advances, such as mobile phones, have dramatically increased the amount of communications that are kept in electronic warehouses and can be reviewed by law enforcement authorities carrying a subpoena.

"Technology has evolved in a way that makes the content of more communications available to law enforcement without judicial authorization, and at a very low level of suspicion," said Greg Nojeim, a senior counsel at the Center for Democracy & Technology.

The chairman of the Senate Judiciary Committee, Patrick Leahy, has proposed changing the law to require a warrant for all Internet communications regardless of their age. But law enforcement officials have resisted because they said it would undercut their ability to catch criminals.

A subpoena is usually sufficient to require Internet companies to reveal names and any other information that they have that would identify the owner of a particular email account. Google, which operates the widely used Gmail service, complied with more than 90 percent of the nearly 12,300 requests it received in 2011 from the U.S. government for data about its users, according to figures from the company.

Even if a Gmail account is created with a fictitious name, there are other ways to track down the user. Logs of when messages are sent reveal the Internet address the user used to log onto the account. Matching times and dates with locations allow investigators to piece together the chain.

A Gmail account figured prominently in the FBI investigation that led to Petraeus' stunning resignation last week as the nation's spy chief. Petraeus, a retired Army general, stepped down after he confessed to an extramarital affair with Paula Broadwell, an Army Reserve officer and his biographer.

The inquiry began earlier this year after Jill Kelley, a Florida woman who was friends with Petraeus and his wife, Holly, began receiving harassing emails. Kelley is a Tampa socialite. That is where the military's Central Command and Special Operations Command are located.

Petraeus served as commander at Central Command from 2008 to 2010.

FBI agents eventually determined that the email trail led to Broadwell, according to two federal law enforcement officials, who spoke on condition of anonymity because the sources were not authorized to speak about the matter on the record. As they looked further, the FBI agents came across a private Gmail account that used an alias name. On further investigation, the account turned out to be Petraeus's.

The contents of several of the exchanges between Petraeus and Broadwell suggested they were having an affair, according to the officials. Investigators determined that no security breach had occurred, but continued their investigation into whether Petraeus had any role in the harassing emails that Broadwell had sent to Kelley, which was a criminal investigation.

Petraeus and Broadwell apparently used a trick, known to terrorists and teen-agers alike, to conceal their email traffic.

One of the law enforcement officials said they did not transmit all of their communications as emails from one's inbox to the other's inbox. Rather, they composed some emails in a Gmail account and instead of transmitting them, left them in a draft folder or in an electronic "dropbox." Then the other person could log onto the same account and read the draft emails there. This avoids creating an email trail which is easier to trace. It's a technique that al-Qaida terrorists began using several years ago and teen-agers in many countries have since adopted.

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Associated Press writer Pete Yost contributed to this report.

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Panetta: Admin deciding on post-2014 troop levels

ABOARD A U.S. MILITARY AIRCRAFT OVER THE PACIFIC (AP) — Defense Secretary Leon Panetta said Monday the Obama administration is nearing a decision in the next few weeks on how many U.S. troops would remain in Afghanistan — and for what purposes — after the U.S.-led combat mission ends in 2014.

Panetta told reporters aboard his plane en route from Hawaii to Australia that Gen. John Allen, the top U.S. commander in Afghanistan, has developed several options on a post-2014 presence.

Panetta also was asked about his future at the Pentagon. While he declined to reveal his plans, he suggested he still had work to do on the job he took in July 2011.

"It's no secret that at some point I'd like to get back to California," he said. Panetta is from Monterey, Calif.

He added that there are a number of important defense issues awaiting resolution, including a budget impasse and the future of U.S. involvement in Afghanistan — suggesting that he would not leave immediately.

"Right now, my goal is to basically meet my responsibilities with regard to dealing with those issues," Panetta said.

Pressed to say whether he would rule out staying for all four years of a second Obama term, he replied, "Who the hell knows?"

Panetta said the Pentagon is reviewing those options with the White House. He would not reveal what troop levels are being considered, but it is believed that at least several thousand could be needed for several years beyond 2014.

"My hope is that we'll be able to complete this process in the next few weeks," Panetta said.

The decision will depend in part of the Afghan government's willingness to permit a post-2014 U.S. military presence and to provide legal guarantees for those troops that are acceptable to Washington.

Once that decision is made, U.S. officials have said they will set a timetable for reducing troop levels between now and the end of 2014. There now are about 67,000 U.S. troops in Afghanistan, and their mission is evolving from combat to advising, assisting and training Afghan forces.

A post-2014 U.S. military presence also would be expected to include hunting and killing extremists, including members of al-Qaida in Afghanistan.

Asked about David Petraeus's resignation as CIA director over revelations that he had an affair with his biographer, Panetta said he saw it as a "very sad situation to have him end his career like that." Panetta was CIA director before Petraeus.

"I think he took the right step" by resigning, Panetta added.

Panetta was beginning a weeklong trip to Asia to meet with his counterparts in Australia, Thailand and Cambodia. He said this was an important expression of the Obama administration's commitment to deepening ties in the region and developing more security partnerships.

For decades American administrations have fought the perception among Asians that Washington paid too little attention to their security interests. This view was reinforced during the years of U.S. focus on Iraq, and it persists even as the war in Afghanistan winds down.

The Obama administration has made much of its "pivot" to the Asia-Pacific, which has entailed more high-level diplomatic and security engagements and an attempt to expand cooperation with Australia and others in the region. But it is not fundamentally different from what the administration of President George W. Bush was pursuing even as it got mired in Iraq and saw stalemate in Afghanistan.

In June 2007, then-Defense Secretary Robert Gates argued at a security conference in Singapore that the U.S. was increasingly focused on Asia.

"Far from neglecting Asia, the U.S. is more engaged than ever before," he said. "We have been extraordinarily busy in recent years as we reshape and strengthen our security ties based on shared interests. Some are bilateral relationships that have been formed, renewed, or modernized - each with varying types and degrees of cooperation."

Among the issues dogging Panetta and the Pentagon is the controversy over the U.S. response to an attack on U.S. diplomatic facilities in Benghazi, Libya, two months ago.

Panetta said the Pentagon and the State Department are assessing what additional or improved arrangements might be necessary to secure U.S. diplomatic outposts in the Middle East. He was not specific.

As for the Benghazi attack, Panetta said it was "largely over" by the time the Pentagon was able to move forces close enough to Libya to respond.

Asked about the prospect of Congress and the administration settling for a short-term fix to the budget deficit crisis, rather than agreeing on measures to end the threat of further large defense spending cuts, Panetta said, "That's the worst thing that could happen."

He added: "That's the last damn thing I need right now," because it would perpetuate uncertainty about future defense spending and defense priorities.

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