SEOUL | Sun Dec 30, 2012 11:14pm EST

SEOUL (Reuters) - South Korea's parliament was expected to pass next year's government budget on Monday after slightly expanding welfare spending programs in line with President-elect Park Geun-hye's campaign pledges.

Media cited officials at the ruling and main opposition parties as saying they now aimed to put their agreed version up for vote later in the day after winding up debate on minor issues at sub-committee meetings.

The value of the 2013 budget bill is expected to rise to about 342.7 trillion won ($320.11 billion) from 342.5 trillion won, but there would be no big change in funding plans, media reports said.

The government's plan is to narrow the official fiscal deficit to 0.3 percent of gross domestic product in 2013 from a projected 1.1 percent deficit in 2012.

The fiscal year begins on January 1 but parliament has often delayed budget approval until after midnight on December 31 due to wrangling between the ruling and opposition parties.

The government had proposed to allocate 28 percent of total spending to health, welfare and labor but Park promised this month to increase welfare spending.

Park, from the ruling conservative Saenuri Party, does not take office until late February.

Technically, the ruling party holds 51.3 percent of the single-chamber National Assembly and can pass the bill alone but wants to reach agreement with the opposition first. The main opposition Democratic United Party holds 42.3 percent.

($1 = 1070.575 won)

(Reporting By Se Young Lee; Editing by Choonsik Yoo and Nick Macfie)

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Policemen stand guard outside the cremation ground during the funeral of a rape victim after her body arrived from Singapore, in New Delhi December 30, 2012.

NEW DELHI | Mon Dec 31, 2012 1:35am EST

NEW DELHI (Reuters) - One of hundreds of attacks reported in New Delhi each year, the brutal gang rape and murder of a young medical student in a private bus this month caught authorities and political parties flat-footed, slow to appreciate it had become symbolic of all the others.

In the moments before the December 16 attack, the 23-year-old woman from India's urban middle class, who had recently qualified as a trainee physiotherapist in a private Delhi hospital, and her male friend, a software engineer, were walking home from a cinema at a shopping mall in south Delhi, according to a police reconstruction of events.

A bus, part of a fleet of privately owned vehicles used as public transport across the city of 16 million, and known as India's "rape capital", was at the same time heading toward them. Earlier that day, it had ferried school students but was now empty except for five men and a teenage boy, including its crew, police said. Most of the men were from the city's slums.

One of the six - all now charged with murder - lured the couple onto the bus, promising to drop the woman home, police have said, quoting from an initial statement that she gave from her hospital bed before her condition deteriorated rapidly.

A few minutes into the ride, her friend, 28, grew suspicious when the bus deviated from the supposed route and the men locked the door, according to her statement. They then taunted her for being out with a man late at night, prompting the friend to intervene and provoking an initial scuffle.

The attackers then beat him with a metal rod, knocking him unconscious, before turning on the woman who had tried to come to his defense. Police say the men admitted after their arrest to torturing and raping the student "to teach her a lesson".

At one point, the bus driver gave the wheel to another of the accused and dragged the woman by the neck to the back of the vehicle and forced himself upon her. The other five then took turns raping her and also driving the bus, keeping it circling through the busy streets of India's capital city, police said.

The woman was raped for nearly an hour before the men pushed a metal rod inside her, severely damaging her internal organs, and then dumped both her and her friend on the roadside, 8 km (5 miles) from where they had boarded it, police said.

Robbed of their clothes and belongings, they were found half naked, bleeding and unconscious later that night by a passerby, who alerted the police.

FAMILY ROLE MODEL

The woman, whose identity has been withheld by police, gave her statement to a sub-divisional magistrate on December 21 in the intensive care unit of Delhi's Safdarjung Hospital, according to local media reports. She was undergoing multiple surgical procedures and her condition later began to rapidly worsen.

Ten days after the attack and still in a critical condition, she was flown to Singapore for specialist treatment. She died in Singapore's Mount Elizabeth Hospital two days later. Her body was flown back to Delhi and cremated there on Sunday in a private ceremony.

Family members who had accompanied her to Singapore declined to speak to reporters, but relatives told the Times of India newspaper she had been a role model to her two younger brothers.

Unlike most traditional Indian families who only send their sons to fee-paying colleges or universities, her parents pinned their hopes on the daughter and took loans to fund her studies.

She was born and brought up in a middle class Delhi neighborhood after her family moved to the city more than 20 years ago from India's northern Uttar Pradesh state.

Her male friend recorded his statement to a local court days after the attack and helped police identify the six accused. He left for his hometown in Uttar Pradesh late on Saturday, missing the woman's funeral, local media reported.

SHAME, ANGER IN SLUM

Four of the accused, all in custody, live in the narrow by-lanes of Ravi Das Camp, a slum about 17 km (11 miles) from the woman's home in southwest Delhi. Inside the slum - home to some 1,200 people who eke out a meager living as rickshaw pullers and tea hawkers - many demanded the death penalty for the accused.

"The incident has really shocked all of us. I don't know how I will get my children admitted to a school. The incident has earned a bad name to this place," said Pooja Kumari, a neighbor of one of the accused.

Girija Shankar, a student, said: "Our heads hang in shame because of the brutal act of these men. They must reap what they have sown."

The house of one of the accused was locked, with neighbors saying his family had left the city to escape the shame and anger. Meena, a 45-year-old neighbor, said she had wanted to join the protests that followed the rape, but was too scared.

"You never know when a mob may attack this slum and attack our houses. But we want to say we're as angry as the entire nation. We want them to be hanged," she said.

Two of the six alleged assailants come from outside Delhi, according to police. One is married with children and was arrested in his native village in Bihar state and the other, a juvenile, is a runaway from a broken home in Uttar Pradesh.

In India, murder is punishable by death by hanging, except in the case of offenders aged below 18.

(Additional reporting by Suchitra Mohanty; Editing by Mark Bendeich and Ian Geoghegan)

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U.S. President Barack Obama and Secretary of State Hillary Clinton participate in a transfer ceremony of the remains of U.S. Ambassador to Libya, Chris Stevens and three other Americans killed this week in Benghazi, at Andrews Air Force Base near Washington, September 14, 2012. Ambassador Stevens and the other Americans died after gunmen attacked the lightly fortified U.S. consulate and a safe house refuge in Benghazi on Tuesday night.

WASHINGTON | Sun Dec 30, 2012 9:35am EST

WASHINGTON (Reuters) - The United States has some "very good leads" about who carried out the attacks in Benghazi, Libya, that killed four Americans including the U.S. ambassador in September, President Barack Obama said in an interview broadcast on Sunday.

Obama told NBC's "Meet the Press" that the United States would carry out all of the recommendations put forward in an independent review of the September 11 attack on the U.S. mission in Benghazi in which Ambassador Christopher Stevens was killed.

"We're not going to pretend that this was not a problem. This was a huge problem. And we're going to implement every single recommendation that's been put forward," Obama said in the interview, referring to security issues identified in the review.

"With respect to who carried it out, that's an ongoing investigation. The FBI has sent individuals to Libya repeatedly. We have some very good leads, but this is not something that I'm going to be at liberty to talk about right now," he said.

The interview was conducted on Saturday.

(Reporting by Jeff Mason; Editing by Will Dunham)

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DUBAI | Mon Dec 31, 2012 1:10am EST

DUBAI (Reuters) - The Yemen-based branch of al Qaeda has offered a bounty for anyone who kills the U.S. ambassador to Yemen or an American soldier in the impoverished Arab state, a group that monitors Islamist websites said.

Al Qaeda in the Arabian Peninsula (AQAP) said it was offering three kilograms of gold for the killing of the U.S. ambassador in Sanaa, Gerald Feierstein, the U.S.-based SITE Intelligence Group said, citing an audio released by militants.

AQAP will also pay 5 million rials ($23,350) to whoever kills any American soldier in Yemen, it said.

The offer, valid for six months, was made "to encourage our Muslim Ummah (nation), and to expand the circle of the jihad (holy war) by the masses," SITE said, citing the audio.

AQAP, mostly militants from Yemen and Saudi Arabia, is regarded by the United States as the most dangerous branch of the network founded by Osama bin Laden.

In September, AQAP urged Muslims to step up protests and kill U.S. diplomats in Muslim countries over a film denigrating the Prophet Mohammad, which it said was another chapter in the "crusader wars" against Islam.

The film provoked an outcry among Muslims, who deem any depiction of the Prophet as blasphemous and triggered violent attacks on embassies in countries in Asia and the Middle East.

Four U.S. officials including the ambassador to Libya were killed in the aftermath. The Pentagon said it had sent a platoon of Marines to Yemen after demonstrators stormed the U.S. Embassy in Sanaa.

A U.S. ally, Yemen is struggling against challenges on many fronts since mass protests forced veteran leader Ali Abdullah Saleh to step down in February after decades in power.

President Abd-Rabbu Mansour Hadi's government is trying to re-establish order and unify the army.

Washington, which has pursued a campaign of assassination by drone and missile against suspected al Qaeda members, backed a military offensive in May to recapture areas of Abyan province. But militants have struck back with a series of bombings and killings.

(Reporting by Rania El Gamal; editing by Todd Eastham)

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International peace envoy for Syria Lakhdar Brahimi attends a meeting with Arab League Secretary-General Nabil Elaraby (unseen) at the Arab League's headquarters in Cairo December 30, 2012. The international mediator touting a peace plan for Syria warned on Saturday of ''hell'' if the warring sides shun talks, and Moscow accused enemies of President Bashar al-Assad of blocking negotiations.

AZAZ, Syria/CAIRO | Sun Dec 30, 2012 6:58pm EST

AZAZ, Syria/CAIRO (Reuters) - The international peace negotiator for Syria pleaded with outside countries on Sunday to push the warring parties to the table for talks, warning that the country would become a failed state ruled by warlords unless diplomacy is given a chance.

Lakhdar Brahimi, who inherited the seemingly impossible task of bringing an end to the war after his predecessor Kofi Annan resigned in frustration in July, has launched an intensified diplomatic campaign to win backing for a peace plan.

He spent five days this week in Damascus, where he met President Bashar al-Assad. On Saturday he visited Assad's main international backers in Moscow, and on Sunday he travelled to Cairo, where President Mohamed Mursi has emerged as one of Assad's most vocal Arab opponents.

"The problem is that both sides aren't speaking to one another," he said. "This is where help is needed from outside."

Brahimi's peace plan - inherited from Annan and agreed to in principle in Geneva in June by countries that both oppose and support Assad - has the seemingly fatal flaw of making no mention of whether Assad would leave power.

The Syrian leader's opponents - who have seized much of the north and east of the country in the past six months - say they will not cease fire or join any talks unless Assad goes and have largely dismissed Brahimi's initiative.

But Brahimi says the plan is the only one on the table, and predicts "hell" if countries do not push both sides to talk.

"The situation in Syria is bad, very, very bad, and it is getting worse, and the pace of deterioration is increasing," Brahimi told reporters.

"People are talking about Syria being split into a number of small states ... This is not what will happen. What will happen is Somalization: warlords." Somalia has been without effective central government since civil war broke out there in 1991.

More than 45,000 people have been killed in Syria's 21-month war, the longest and deadliest of the revolts that began sweeping the Arab world two years ago.

The rebels are mainly from the Sunni Muslim majority, fighting against Assad, a member of the Shi'ite-derived Alawite minority sect, giving the war a dangerous sectarian dimension.

The rebels increasingly believe that their military successes of the past half year are bringing victory within reach. But Assad's forces still hold the densely-populated southwest of the country, the main north-south highway and the Mediterranean coast in the northwest.

The government also holds airbases scattered throughout the country, and has an arsenal including jets, helicopters, missiles and artillery that the fighters cannot match.

ASSAD FORCES SEIZE HOMS DISTRICT

Government troops scored a victory on Saturday after several days of fighting, seizing a Sunni district in Homs, a central town that controls the vital road linking Damascus to the coast.

Opposition activists said on Sunday that many people had been killed in the Deir Baalbeh district after it was captured, although it was not immediately possible to verify claims that a "massacre" had taken place. The opposition Syrian Network for Human Rights said it documented the summary execution of 17 men.

"They were young and old, mostly refugees who had fled to Deir Baalbeh from central parts of Homs," it said in a statement. Footage taken by activists showed the bodies of eight men with what appeared to be bullet wounds in the face and head.

With severe restrictions by Syrian authorities on independent media in place since the revolt broke out in March last year, the footage could not be confirmed.

Najati Tayyara, a veteran opposition campaigner from Homs in contact with the city, told Reuters residents believed the death toll was as high as 260, although the area was sealed off by government forces and allied militia.

"I am afraid that we have seen a massacre in Deir Baalbeh and a military setback for the rebels because of their lack of organization. They have been in need of ammunition for a long time and it finally ran out," he said.

"Communications are difficult and we are trying to piece together what happened in Deir Baalbeh. We so far know that regime forces went in after the rebels retreated and summarily executed dozens of people, including civilians."

Tayyara said the fall of Deir Baalbeh undermined supply lines to rebel held areas inside the city.

Bilal al-Homsi, an opposition activist in Old Homs, said MiG warplanes bombarded the area overnight and medium range rockets and hit the area of al-Khalidiya, a rebel-held Sunni district.

In the north, opposition activists said fighters had surrounded an air defense base near Aleppo airport, south of the contested city. Fighting raged in the area and warplanes bombed rebel positions near the base to try and break the siege.

In the northern city of Azaz, where activists said 11 people were killed when air strikes destroyed six homes, gravediggers were already digging graves for whichever victims will be next.

"We know the plane is coming to hit us, so we're being prepared," said Abu Sulaiman, one of a few men digging at the Sheikh Saad cemetery.

"Massacres are happening. We're putting every two or three bodies together. We've been working and digging since 6 in the morning. We're going to dig 10 new graves today," he said.

"We're preparing them. Maybe we'll be buried in them."

Fida, a 15-year-old girl in a green scarf and purple coat looked on as her father shoveled dirt from the gravesite. The dead from the previous day's attacks included friends she recognized when their shrouds were pulled back.

"Yesterday was the first time I uncovered blankets to discover that my friends had died," she said, as young children near the cemetery played hopscotch on the streets and kicked stones about.

"I was just about to go visit them about a half hour before the strike hit," she said. "In the end I visited them when they were dead."

(Adiditional reporting by Khaled Yacoub Oweis in Amman, Ayman Samir and Tom Perry in Cairo and Peter Graff in Beirut; Writing by Peter Graff; Editing by Rosalind Russell)

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