A U.S. Air Force MQ-1 Predator, unmanned aerial vehicle, armed with AGM-114 Hellfire missiles, performs a low altitude pass during the Aviation Nation 2005 air show at Nellis Air Force Base, Nevada in this November 13, 2005 USAF handout photo obtained by Reuters February 6, 2013.

WASHINGTON | Fri Mar 15, 2013 4:36pm EDT

WASHINGTON (Reuters) - A federal judge twice considered by President Barack Obama for the Supreme Court has rebuked the administration over the secrecy surrounding aerial drone strikes abroad, adding to pressure Obama already faces from fellow Democrats.

A ruling on Friday from Judge Merrick Garland in Washington capped a week of mounting calls for the release of more information and follows a drawn-out confirmation process for the new director of the Central Intelligence agency, John Brennan.

The Obama administration defends the attacks as essential to the fight against al Qaeda and other militants in countries such as Pakistan and Yemen. The strikes have at times killed civilians who were not targets, ignited local anger and frayed diplomatic ties.

A Democratic senator confronted Obama about the drone program at a closed-door meeting on Tuesday, the Politico newspaper reported, and on Wednesday a lawyer who led Obama's 2008 presidential transition, John Podesta, wrote an opinion piece accusing the administration of wrongly withholding drone-related legal opinions.

Garland, writing for himself and two other judges on the Court of Appeals for the District of Columbia Circuit, criticized the Central Intelligence Agency for refusing in a lawsuit even to acknowledge the existence of its drone program. He called the CIA's legal reasoning indefensible and a fiction.

"'There comes a point where... courts should not be ignorant as judges of what (they) know as men' and women," Garland wrote, quoting a 1949 Supreme Court opinion.

"We are at that point with respect to the question of whether the CIA has any documents regarding the subject of drone strikes," he wrote.

The ruling effectively revives a lawsuit in which the American Civil Liberties Union is asking for records from the CIA. Obama administration lawyers have opposed the suit.

TRANSPARENCY DEBATE

In response to the ruling, a National Security Council spokeswoman said the administration had been more transparent than any of its predecessors on the conduct of sensitive counterterrorism operations but would not discuss details of specific operations.

Caitlin Hayden, the spokeswoman, said in a statement: "We will continue to disclose as much as we can - as soon as we can - regarding the framework, the standards, and the process through which we approve such operations."

Justice Department spokeswoman Nanda Chitre said the department was reviewing the decision, while CIA spokesman Todd Ebitz said: "The CIA does not, as a rule, comment on matters before the courts."

Attorney General Eric Holder said in congressional testimony on March 6 that Obama would soon reveal more about the legal rationale for drone strikes.

"We have talked about a need for greater transparency," said Holder, the chief U.S. law enforcement official.

Democrats outside the administration have shown growing impatience with the secrecy. West Virginia Senator Jay Rockefeller, a former Senate Intelligence Committee chairman, urged Obama to be more open during the president's meeting with Senate Democrats on Tuesday, Politico reported.

Podesta, a Democratic insider who oversaw Obama's 2008 transition, wrote in The Washington Post on Wednesday that Obama "is ignoring the system of checks and balances that has governed our country from its earliest days."

Last week, two Democratic senators voiced similar ideas in voting against confirming John Brennan as Obama's CIA director. Brennan was confirmed to the post on March 7, but the confirmation process was delayed for weeks by concerns about the administration's use of drones.

HIGH COURT CANDIDATE

Garland, 60, was a high-level Justice Department official when President Bill Clinton appointed him a judge.

He was on Obama's list of candidates for the Supreme Court when vacancies arose in 2009 and 2010. Obama chose others, but Garland remains a frequently cited judge on the influential appeals court in Washington.

In its efforts to quash the ACLU's records suit, the CIA said it could neither confirm nor deny whether it had drone records because of security concerns.

The ACLU, which sued under the 1966 Freedom of Information Act, countered that government officials had already acknowledged the drone program in public statements from 2009 to 2012.

The question became whether the statements by Obama, former CIA Director Leon Panetta and former counterterrorism adviser Brennan amounted to an official acknowledgment.

Garland ruled that they did, writing, "The president of the United States has himself publicly acknowledged that the United States uses drone strikes against al Qaeda."

However, if the case follows the pattern of similar suits, the ACLU is likely a long way from getting any records. Its suit now heads back to a trial court, where the CIA could invoke other defenses against the records request.

Jameel Jaffer, deputy legal director of the ACLU, said the ruling would make it more difficult for the government to deflect questions about drones.

"The public surely has a right to know who the government is killing, and why, and in which countries, and on whose orders," Jaffer said in a statement.

(Additional reporting by Mark Felsenthal and Tabassum Zakaria; Editing by Howard Goller and David Brunnstrom)

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WASHINGTON | Wed Mar 13, 2013 1:15am EDT

WASHINGTON (Reuters) - A defense contractor better known for building jet fighters and lethal missiles says it has found a way to slash the amount of energy needed to remove salt from seawater, potentially making it vastly cheaper to produce clean water at a time when scarcity has become a global security issue.

The process, officials and engineers at Lockheed Martin Corp say, would enable filter manufacturers to produce thin carbon membranes with regular holes about a nanometer in size that are large enough to allow water to pass through but small enough to block the molecules of salt in seawater. A nanometer is a billionth of a meter.

Because the sheets of pure carbon known as graphene are so thin - just one atom in thickness - it takes much less energy to push the seawater through the filter with the force required to separate the salt from the water, they said.

The development could spare underdeveloped countries from having to build exotic, expensive pumping stations needed in plants that use a desalination process called reverse osmosis.

"It's 500 times thinner than the best filter on the market today and a thousand times stronger," said John Stetson, the engineer who has been working on the idea. "The energy that's required and the pressure that's required to filter salt is approximately 100 times less."

Access to clean drinking water is increasingly seen as a major global security issue. Competition for water is likely to lead to instability and potential state failure in countries important to the United States, according to a U.S. intelligence community report last year.

"Between now and 2040, fresh water availability will not keep up with demand absent more effective management of water resources," the report said. "Water problems will hinder the ability of key countries to produce food and generate electricity."

About 780 million people around the world do not have access to clean drinking water, the United Nations reported last year.

"One of the areas that we're very concerned about in terms of global security is the access to clean and affordable drinking water," said Tom Notaro, Lockheed business manager for advanced materials. "As more and more countries become more developed ... access to that water for their daily lives is becoming more and more critical."

PRODUCTION CHALLENGE

Lockheed still faces a number of challenges in moving to production of filters made of graphene, a substance similar to the lead in pencils. Working with the thin material without tearing it is difficult, as is ramping up production to the size and scale needed. Engineers are still refining the process for making the holes.

It is not known whether Lockheed faces commercial competition in this area. But it is not the only one working on the technology.

Jeffrey Grossman, an associate professor at the Massachusetts Institute of Technology who has done research on graphene membranes for filtration, said he was not familiar with details of Lockheed's work. But he said finding a way to produce graphene sheets with nanometer-sized holes could produce a major advancement in desalination efficiency.

"If you can design a membrane that's completely different than what we use today, then there's a chance for more than two orders of magnitude (100 times) increase in the permeability of the membrane," Grossman said.

Stetson, who began working on the issue in 2007, said if the new filter material, known as Perforene, was compared to the thickness of a piece of paper, the nearest comparable filter for extracting salt from seawater would be the thickness of three reams of paper - more than half a foot thick.

"It looks like chicken wire under a microscope, if you could get an electron microscope picture of it," he said. "It's all little carbon atoms tied together in a diaphanous, smooth film that's beautiful and continuous. But it's one atom thick and it's a thousand time stronger than steel."

Thickness is one of the main factors that determines how much energy has to be used to force saltwater through a filter in the reverse osmosis process used for desalination today.

"The amount of work it takes to squeeze that water through the torturous path of today's best membranes is gone for Perforene," Stetson said. "It just literally pops right through because the membrane is thinner than the atoms it's filtering."

Notaro said Lockheed expects to have a prototype by the end of the year for a filter that could be used as a drop-in replacement for filters now used in reverse osmosis plants.

The company is looking for partners in the filter manufacturing arena to help it commercialize Perforene as a filter in the 2014-2015 time frame, he said.

Lockheed officials see other applications for Perforene as well, from dialysis in healthcare to cleaning chemicals from the water used in hydraulic fracturing, or "fracking," of oil and gas wells.

(Editing by Warren Strobel and Jackie Frank)

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1 of 4. U.S. President Barack Obama delivers remarks on energy at the Argonne National Lab near Chicago, March 15, 2013.

LEMONT, Ill./WASHINGTON | Fri Mar 15, 2013 6:39pm EDT

LEMONT, Ill./WASHINGTON (Reuters) - President Barack Obama tried to move past partisan fights over energy policy on Friday with a modest proposal to fund research into cars that run on anything but gasoline.

Obama toured the Argonne National Laboratory outside of Chicago, known for its research into advanced batteries used in electric cars, then delivered a speech highlighting the need to find more ways to wean vehicles off oil.

The United States has a newfound wealth of oil and natural gas resources made possible by hydraulic fracturing and other drilling advancements, but consumers still face high prices at the pumps because gasoline prices are tied to world markets.

"The only way to break this cycle of spiking gas prices for good is to shift our car and trucks entirely off oil," Obama said in Argonne's advanced photon facility, which says it produces the brightest source of X-rays in the Western Hemisphere, used for an array of research projects.

The Democratic president proposed a fund that will draw $2 billion over 10 years from royalties the government receives from offshore drilling in the Outer Continental Shelf.

The research would be aimed at new ways to lower the cost of vehicles that run on electricity, biofuels, natural gas or other non-oil fuel sources.

Obama first mentioned the Energy Security Trust fund in his State of the Union address last month.

The White House touted the idea as bipartisan, saying it came from retired military and business leaders, including some Republicans, who belong to a policy group called Securing America's Future Energy.

"This is not a Democratic idea or a Republican idea," Obama said, standing in front of three cars designed to run on alternative fuels. "This is just a smart idea."

But Republican approval was far from assured.

"For this proposal to even be plausible, oil and gas leasing on federal land would need to increase dramatically," said Brendan Buck, a spokesman for Republican House of Representatives Speaker John Boehner. "Unfortunately, this administration has consistently slowed, delayed, and blocked American energy production."

By choosing to focus his first energy speech on research - an issue that appeals equally to Republicans and Democrats, industry and environmental groups - Obama is seeking to build common ground on energy, which has been a divisive policy issue.

"In order for something like this to pass the Hill, it will need votes from both sides," said Michael Levi, an energy fellow at the Council on Foreign Relations. "That makes it wise for the president to start with something that Congress can work from."

IS CONGRESS WILLING?

The research trust fund will require consent from Congress, which is grappling with federal budget cuts. Senator Lisa Murkowski of Alaska, the top Republican on the Senate Energy Committee, had proposed a similar idea. But her version called for expanded drilling, which Obama's proposal does not include.

Murkowski's spokesman Robert Dillon said the president's plan relied on royalties that have already been factored into the budget, "which could mean either deficit spending or less funding for the Land and Water Conservation Fund."

"There's a better way that not only funds investment in research, but also addresses our need for affordable and abundant energy," Dillon said, referring to expanded drilling.

White House officials said the president's plan would not add to the deficit because they expect leasing revenues to grow in coming years for several reasons, including changes the administration plans to make to leasing policy.

White House spokesman Josh Earnest said the administration is willing to work with Congress on the research fund plan.

"If there are different ideas people want to offer up, we'll certainly have a conversation with them about that," he said.

Mark Kennedy, the director of George Washington University's Graduate School of Political Management, said despite the misgivings expressed by some Republicans, the White House may be able to negotiate a deal that pleases both sides.

"I think this is the opening bid," Kennedy said. "This is the beginning of the conversation."

In his first term, Obama pushed for laws that would use market forces to reduce climate-changing carbon pollution, but the "cap and trade" bill was opposed by industry and failed in Congress.

His administration pumped $90 billion in economic stimulus funds into clean energy and "green jobs" projects, helping to dramatically expand renewable energy production in America.

But some projects failed, including a California solar panel maker called Solyndra that had received a $527 million government loan. Critics excoriated his administration for that failure, as well as for delaying approval of the Keystone XL crude oil pipeline from Canada.

The energy trust fund "is a more pragmatic approach to try to continue investments in green energy given the degree to which the (clean energy) brand has been damaged," said Kennedy, a former Republican congressman from Minnesota.

(Editing by Doina Chiacu and Mohammad Zargham)

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Google CEO Eric Schmidt gestures during the Web 2.0 Summit in San Francisco, California November 15, 2010.

YANGON | Fri Mar 15, 2013 6:36pm EDT

YANGON (Reuters) - Google Inc Executive Chairman Eric Schmidt, who visited North Korea in January, will become the first high-profile tech company executive to visit Myanmar in the wake of reforms that prompted Western nations to ease sanctions following decades of military dictatorship.

The visit next week to Myanmar, where Schmidt will speak at a technology and communications park and meet with government officials, is just one stop in a multi-country Asian tour to promote Internet access, according to Google.

Since Myanmar's military stepped aside and a quasi-civilian government was installed in 2011, setting off a wave of political and economic reforms, the country has enjoyed a surge of interest from overseas businesses.

The former Burma is the last virgin territory for businesses in Asia, with untapped markets including the telecoms sector: mobile penetration in the country of 60 million is estimated to be a meager 5-10 percent.

Unlike Schmidt's controversial visit to Pyongyang, in which Google described as a "personal" trip, the visit to Myanmar falls within his mandate as executive chairman, which involves government outreach, thought leadership and building partnerships and business relationships, the company said.

But Schmidt, who was Google's chief executive from 2001 to 2011, is becoming more visible on issues involving technology and world affairs.

His book, "The New Digital Age", due to hit bookshelves in April, was co-authored with Google Ideas chief Jared Cohen, who had previously worked at the U.S. State Department.

According to an early review in The Wall Street Journal, the authors criticize China for being an enthusiastic "filterer of information" and a "prolific" hacker of foreign companies. During Schmidt's tenure as Google's chief, the company famously pulled out of China after a dispute over censorship and hacking.

"Eric (Schmidt) is visiting several countries in Asia to connect with local partners and Googlers who are working to improve the lives of many millions of people across the region by helping them get online and access the world's information for the first time in the next few years," Google said in a statement. His trip also includes India.

In November, Schmidt visited Seoul, Taipei and Beijing.

WHISTLE-STOP

The Myanmar trip will be Schmidt's second visit this year to a country off the beaten track. In January he went to North Korea, saying it was a personal trip to talk about a free and open Internet.

Schmidt is due to give a speech at the Myanmar Information and Communication Technology Park in Yangon on March 22, before making his way to the capital, Naypyitaw, to meet senior government officials, said Zaw Min Oo, secretary general of the Myanmar Computer Society.

"There will be an audience of about 400, comprising entrepreneurs, executive committee members of the computer association and young leaders," Zaw Min Oo told Reuters, referring to the speech.

Myanmar's planned modernization of telecoms infrastructure and expected boom in mobile phone usage will pave the way for the entry of companies such as Google, which could profit greatly through sales of cheap smartphones built around its Android platform.

In February the U.S. Treasury Department issued a general license for four of Myanmar's biggest banks, two of which are owned by tycoons associated with the former junta, before a visit by 50 U.S. executives that month to explore opportunities.

The delegation, led by the U.S. Agency for International Development (USAID) and including Cisco Systems Inc, Google, Hewlett-Packard Co, Intel Corp, and Microsoft Corp, visited Myanmar to look into projects to boost access to the Internet, strengthen transparent government and expand digital literacy, according to a USAID statement.

Many leading firms in Myanmar are still largely controlled by businessmen subject to sanctions, but Western companies are starting to move in after the implementation of a new foreign investment law.

Myanmar is offering two operating licenses for companies to build new telecoms infrastructure.

MTN Group, Africa's largest mobile phone company, which is bidding for a license, has said around 90 companies have expressed interest.

(Additional reporting by Jeremy Wagstaff in Singapore and Alexei Oreskovic in San Francisco; Writing by Paul Carsten in Bangkok; Editing by Alan Raybould, Pravin Char and Richard Chang)

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Matthew Keys, deputy social media editor for Reuters.com, is seen in his online profile in this undated photo.

SAN FRANCISCO | Fri Mar 15, 2013 9:58pm EDT

SAN FRANCISCO (Reuters) - A Reuters.com editor maintained his innocence after being suspended with pay on Friday following a federal indictment on charges he aided members of the Anonymous hacking collective.

Matthew Keys, 26, a deputy social media editor, was indicted on Thursday by a federal grand jury in Sacramento, California, on three criminal counts. The alleged events occurred before he joined Thomson Reuters, the indictment indicated.

New York attorney Tor Ekeland said he had been hired by Keys to represent him and that his client "maintains his innocence."

Ekeland told Reuters he was assembling a legal team and that Keys "looks forward to contesting these baseless charges."

On Friday, Keys exchanged tweets with some well-wishers on Twitter, telling one of them, "I'm okay."

Thomson Reuters Corp computer systems in December 2010. A story on the Tribune's Los Angeles Times website was soon altered by one of those hackers, the indictment said.

Court filings said Keys had worked for a Tribune-owned television station in Sacramento, operating its Twitter and Facebook feeds. An FBI agent said in a search warrant application that a former colleague told the agency that Keys had been terminated in October 2010.

Keys joined Reuters in New York in January 2012. As deputy social media editor, he promoted stories through Twitter and other means. He lives in Secaucus, New Jersey, the Justice Department said.

Ekeland and a California lawyer working for Keys, Jay Leiderman, laid out a number of defenses, starting with the argument that Keys was acting as a freelance journalist when he was invited to join the Internet Relay Chat channel with elite hackers.

"He was in the chat room interviewing," Leiderman said.

Ekeland said in a video interview with the Huffington Post that while he understood that Keys used the screen name AESCracked at times during the chats recovered by authorities, someone else might have been using that name when AESCracked promised to provide Tribune logon credentials.

Ekeland also said the damage Keys was accused of causing was minor. "It's just sort of a juvenile defacement of a minor story on the L.A. Times website—which he didn't do," Ekeland told the Huffington Post. The maximum for conviction on all three counts would be 25 years in prison, although actual sentences handed down by judges are often far less than the maximum.

Keys wrote on a personal blog and on a Reuters blog that he had previously obtained access to an elite group of hackers, including one known as Sabu.

Sabu, later identified as Hector Xavier Monsegur, became an FBI informant, court records show. Monsegur was publicly identified last year and has pleaded guilty to participating in multiple hacking conspiracies. He is awaiting sentencing.

Ekeland represented alleged AT&T iPad email hacker Andrew Auernheimer, aka "Weev," who was convicted last November on hacking conspiracy and identity fraud charges.

Leiderman's clients include Anonymous member Christopher Doyon, who calls himself Commander X. Doyon was charged with hacking Santa Cruz County, California, computers, but jumped bail and has told Leiderman he is in Canada, Leiderman said.

Keys is scheduled to be arraigned on April 12 in Sacramento, according to the court docket.

The case in U.S. District Court, Eastern District of California, is United States of America v. Matthew Keys, 13-82.

(Editing by Ciro Scotti and Peter Cooney)

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