1 of 20. Paramedics wheel an injured person to a helicopter at the parking lot of the state-run oil company Pemex after an explosion in Mexico City January 31, 2013.

MEXICO CITY | Fri Feb 1, 2013 5:50am EST

MEXICO CITY (Reuters) - Emergency services worked into the early hours of Friday to find people trapped in rubble under state oil company Pemex's headquarters in Mexico City after an explosion that killed at least 25 people and injured more than 100.

Scenes of confusion and chaos at the downtown tower dealt yet another blow to Pemex's image as Mexico's new president courts outside investment for the 75-year-old monopoly.

Search and rescue workers picked through debris, and investigators sifted through shattered glass and concrete at the bottom of the building to try to find what caused the blast. It was not clear how many might still be trapped inside.

Pemex, a symbol of Mexican self-sufficiency as well as a byword in Mexico for security glitches, oil theft and frequent accidents, has been hamstrung by inefficiency, union corruption and a series of safety failures costing hundreds of lives.

Thursday's blast at the more than 50-storey skyscraper that houses administrative offices followed a September fire at a Pemex gas facility near the northern city of Reynosa which killed 30 people. More than 300 were killed when a Pemex natural gas plant on the outskirts of Mexico City blew up in 1984.

Eight years later, about 200 people were killed and 1,500 injured after a series of underground gas explosions in Guadalajara, Mexico's second biggest city. An official investigation found Pemex was partly to blame.

Pemex initially flagged Thursday's incident as a problem with its electricity supply and then said there had been an explosion. But it did not give a cause for the blast.

A government official, speaking on condition of anonymity, said a preliminary line of inquiry suggested a gas boiler had blown up in a Pemex building just to the side of the main tower. However, he stressed nothing had been determined for sure.

Others at the scene said gas may have caused the blast.

Not long after the blast, President Enrique Pena Nieto was at the scene, vowing to discover how it happened.

"We will work exhaustively to investigate exactly what took place, and if there are people responsible, to apply the force of the law on them," he told reporters before going to visit survivors in hospital.

Shortly after midnight, at least 46 victims were still being treated in hospital, the company said.

Pemex said the blast would not affect operations, but concern in the government was evident as top military officials, the attorney general and the energy minister joined Interior Minister Miguel Angel Osorio Chong for a late news conference.

"I have issued instructions to the relevant authorities to convene national and international experts to help in the investigations," Osorio Chong said. He later noted that the number of casualties could still climb.

Whatever caused it, the deaths and destruction will put the spotlight back on safety at Pemex, which only a couple of hours before the explosion had issued a statement on Twitter saying the company had managed to improve its record on accidents.

Nieto has said he is giving top priority to reforming the company this year, though he has yet to reveal details of the plan, which already faces opposition from the left.

Both Pena Nieto and his finance minister were this week at pains to stress the company will not be privatized.

(Editing by Louise Ireland)

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1 of 3. U.S. President Barack Obama speaks about the fiscal cliff at the White House in Washington December 21, 2012.

WASHINGTON | Fri Dec 21, 2012 11:43pm EST

WASHINGTON (Reuters) - The White House on Friday tried to rescue stalled talks on a fiscal crisis after a Republican plan imploded in Congress, but there was little headway as lawmakers and President Barack Obama abandoned Washington for Christmas.

In remarks before flying to Hawaii for a break, Obama suggested reaching a short-term deal on taxes and extending unemployment insurance to avoid the worst effects of the "fiscal cliff" on ordinary Americans at the start of the New Year.

"We've only got 10 days to do it. So I hope that every member of Congress is thinking about that. Nobody can get 100 percent of what they want," said Obama.

Obama said he wanted to sign legislation extending Bush-era tax cuts for 98 percent of Americans in the coming days.

The Democrat appeared to be offering bickering lawmakers a way to fix the most pressing challenge - tax cuts that expire soon - while leaving thorny topics such as automatic spending cuts or extending the debt ceiling for later.

Obama called on lawmakers to use the holiday break to cool off frayed nerves, "drink some eggnog, have some Christmas cookies, sing some Christmas carols," and come back next week ready to make a deal.

Negotiations were thrown into disarray on Thursday when House of Representatives Speaker John Boehner failed to convince his fellow Republicans to accept tax cuts for even the wealthiest of Americans as part of a possible agreement with Obama.

"How we get there, God only knows," Boehner told reporters on Friday when asked about a possible comprehensive fiscal cliff solution.

If there is no agreement, taxes would go up on all Americans and hundreds of billions of dollars in automatic government spending cuts would kick in next month - actions that could plunge the U.S. economy back into recession.

Obama spoke to Boehner on Friday and held a face-to-face White House meeting with the top Democrat in Congress, Senate Majority Leader Harry Reid.

Before his defeat in Congress, Boehner had extracted a compromise from Obama to raise taxes on Americans making more than $400,000 a year, instead of the president's preference of those with income of $250,000 a year.

But with talks stalled on the level of spending cuts to which Obama would agree, Boehner attempted a backup plan to raise taxes only on those making more than $1 million a year - amounting to just 0.18 percent of Americans.

BAD DEFEAT FOR BOEHNER

Boehner's reverse in the House was worse than first thought. A key Republican lawmaker said Boehner scrapped the vote when he realized that between 40 and 50 of the 241 Republicans in the House would not back him.

Obama and his fellow Democrats in Congress are insisting that the wealthiest Americans pay more in taxes in order to help reduce federal budget deficits and avoid deep spending cuts. Republicans control the House and Democrats control the Senate.

Stocks dropped sharply early Friday on fears that the United States could go fall back into recession if politicians do not prevent it.

But major indexes lost less than 1 percent, suggesting investors still held out hope that an agreement will be brokered in Washington.

"I think if you get into mid-January and (the talks) keep going like this, you get worried, but I don't think we're going to get there," said Mark Lehmann, president of JMP Securities, in San Francisco.

Boehner, joined by his No. 2, Eric Cantor, at a Capitol Hill news conference, said the ultimate fault rests with Obama for refusing to agree to more spending reductions that would bring down America's $1 trillion annual deficit and rising $16 trillion debt.

"What the president has proposed so far simply won't do anything to solve our spending problem. He wants more spending and more tax hikes that will hurt our economy," Boehner said.

Democrats responded with incredulity.

House members, heading to their home states for the holidays, were instructed to be available on 48 hours notice if necessary.

"They went from 'Plan B' to 'plan see-you-later,'" Obama adviser David Axelrod said on MSNBC on Friday morning.

The crumbling of Boehner's plan highlights his struggle to lead some House Republicans who flatly reject any deal that would increase taxes on anyone.

Republican Representative Tim Huelskamp criticized Boehner's handling of the negotiations, saying the speaker had "caved" to Obama opening the door to tax hikes. Huelskamp, a dissident first-term congressman from Kansas, said he was not willing to compromise on taxes even if they are coupled with cuts to government spending sought by conservatives.

Fiscal conservatives "are so frustrated that the leader in the House right now, the speaker, has been talking about tax increases. That's all he's been talking about," Huelskamp said on MSNBC on Friday morning.

(Additional reporting by Roberta Rampton, Richard Cowan, Rachelle Younglai, Thomas Ferraro and Matt Spetalnick; Writing by Steve Holland; Editing by Alistair Bell and Lisa Shumaker)

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1 of 3. U.S. President Barack Obama speaks about the fiscal cliff at the White House in Washington December 21, 2012.

WASHINGTON | Fri Dec 21, 2012 11:43pm EST

WASHINGTON (Reuters) - The White House on Friday tried to rescue stalled talks on a fiscal crisis after a Republican plan imploded in Congress, but there was little headway as lawmakers and President Barack Obama abandoned Washington for Christmas.

In remarks before flying to Hawaii for a break, Obama suggested reaching a short-term deal on taxes and extending unemployment insurance to avoid the worst effects of the "fiscal cliff" on ordinary Americans at the start of the New Year.

"We've only got 10 days to do it. So I hope that every member of Congress is thinking about that. Nobody can get 100 percent of what they want," said Obama.

Obama said he wanted to sign legislation extending Bush-era tax cuts for 98 percent of Americans in the coming days.

The Democrat appeared to be offering bickering lawmakers a way to fix the most pressing challenge - tax cuts that expire soon - while leaving thorny topics such as automatic spending cuts or extending the debt ceiling for later.

Obama called on lawmakers to use the holiday break to cool off frayed nerves, "drink some eggnog, have some Christmas cookies, sing some Christmas carols," and come back next week ready to make a deal.

Negotiations were thrown into disarray on Thursday when House of Representatives Speaker John Boehner failed to convince his fellow Republicans to accept tax cuts for even the wealthiest of Americans as part of a possible agreement with Obama.

"How we get there, God only knows," Boehner told reporters on Friday when asked about a possible comprehensive fiscal cliff solution.

If there is no agreement, taxes would go up on all Americans and hundreds of billions of dollars in automatic government spending cuts would kick in next month - actions that could plunge the U.S. economy back into recession.

Obama spoke to Boehner on Friday and held a face-to-face White House meeting with the top Democrat in Congress, Senate Majority Leader Harry Reid.

Before his defeat in Congress, Boehner had extracted a compromise from Obama to raise taxes on Americans making more than $400,000 a year, instead of the president's preference of those with income of $250,000 a year.

But with talks stalled on the level of spending cuts to which Obama would agree, Boehner attempted a backup plan to raise taxes only on those making more than $1 million a year - amounting to just 0.18 percent of Americans.

BAD DEFEAT FOR BOEHNER

Boehner's reverse in the House was worse than first thought. A key Republican lawmaker said Boehner scrapped the vote when he realized that between 40 and 50 of the 241 Republicans in the House would not back him.

Obama and his fellow Democrats in Congress are insisting that the wealthiest Americans pay more in taxes in order to help reduce federal budget deficits and avoid deep spending cuts. Republicans control the House and Democrats control the Senate.

Stocks dropped sharply early Friday on fears that the United States could go fall back into recession if politicians do not prevent it.

But major indexes lost less than 1 percent, suggesting investors still held out hope that an agreement will be brokered in Washington.

"I think if you get into mid-January and (the talks) keep going like this, you get worried, but I don't think we're going to get there," said Mark Lehmann, president of JMP Securities, in San Francisco.

Boehner, joined by his No. 2, Eric Cantor, at a Capitol Hill news conference, said the ultimate fault rests with Obama for refusing to agree to more spending reductions that would bring down America's $1 trillion annual deficit and rising $16 trillion debt.

"What the president has proposed so far simply won't do anything to solve our spending problem. He wants more spending and more tax hikes that will hurt our economy," Boehner said.

Democrats responded with incredulity.

House members, heading to their home states for the holidays, were instructed to be available on 48 hours notice if necessary.

"They went from 'Plan B' to 'plan see-you-later,'" Obama adviser David Axelrod said on MSNBC on Friday morning.

The crumbling of Boehner's plan highlights his struggle to lead some House Republicans who flatly reject any deal that would increase taxes on anyone.

Republican Representative Tim Huelskamp criticized Boehner's handling of the negotiations, saying the speaker had "caved" to Obama opening the door to tax hikes. Huelskamp, a dissident first-term congressman from Kansas, said he was not willing to compromise on taxes even if they are coupled with cuts to government spending sought by conservatives.

Fiscal conservatives "are so frustrated that the leader in the House right now, the speaker, has been talking about tax increases. That's all he's been talking about," Huelskamp said on MSNBC on Friday morning.

(Additional reporting by Roberta Rampton, Richard Cowan, Rachelle Younglai, Thomas Ferraro and Matt Spetalnick; Writing by Steve Holland; Editing by Alistair Bell and Lisa Shumaker)

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Actor and director Ben Affleck speaks at a news conference to promote the film 'Argo' during the 37th Toronto International Film Festival, September 8, 2012.

NEW YORK | Fri Oct 12, 2012 12:25pm EDT

NEW YORK (Reuters) - Antonio "Tony" Mendez is the rarest of creatures: A former spy who has come out of the woodwork.

His story is the subject of Ben Affleck's new film, "Argo," released in the United States Friday, and tipped to feature in Hollywood's awards season.

"Argo" is based on one of Mendez's most remarkable missions, rescuing six Americans from Iran during the height of the 1979 hostage crisis and helping them pose as a Canadian film crew making a fictitious film called "Argo." It follows Mendez's memoir of the same name, released in September.

Mendez, 72, who was named in 1997 one of the CIA's top 50 officers of its first 50 years, talked to Reuters about "Argo" the movie, the real CIA operation and current events in the Middle East.

Q: "Argo" the film depicts the 1979 storming of the U.S. embassy and hostage crisis. How do you compare that to riots in the region in more recent times?

A: "Seeing those crowds surging in front of multiple U.S. embassies and consulates does indeed bring back memories. Security has been beefed up in many ways, but these events show that perhaps they should be beefed up even more."

Q: Why recall the story of the rescue operation now?

A: "I wanted to set the details down on paper for the record and call out my colleagues, who were involved in the planning, even if many were in alias. I wanted to pass on the lessons learned to the public and to my former work mates, something that the CIA does not often do."

Q: Decades later, what perspective do you bring?

A: "Before, Argo was an unorthodox operation, designed out of frustration, a form of risk taking that would probably not be approved in today's political environment. Today, the impact lingers on. A presidency was lost, America's relationship with Iran was severed, and radical Islam had struck its first blow."

Q: Some aspects remain classified, how did those kinds of restrictions impact your writing of the book?

A: "It caused us to mask the true identity of certain individuals and intelligence entities that worked with us. We had to be cautious in describing methods and techniques, but it didn't impede the telling of the story. Not much was lost."

Q: When the story first became public, the CIA asked you to be open to the media. How did it feel to vocalize your participation and who outside the CIA knew about it?

A: "It went against every instinct I had when the CIA first asked me to tell this story, but eventually I lost my inhibition. Only the Canadian government and some elements in Hollywood knew the story at the time. I believe that both are glad to see credit given."

Q: Was there anything that surprised you or complicated things as the Argo rescue unfolded?

A: "Trying to leave Iran, there were mechanical problems with Swiss Air, which was a surprise. A journalist discovered the ruse."

Q: How did this operation compare to the others?

A: "Argo was wildly different from most other exfiltrations I have been involved in. At the CIA we used to say innovation is born out of necessity, sometimes out of desperation. Argo had an operational necessity that demanded out-of-the-box thinking, and this kind of unorthodox planning probably won't be replicated until another occasion when traditional solutions won't work. Necessity drives imagination."

Q: You worked at the CIA through critical periods of transition. What changes did you see?

A: "Don't really want to go there. The agency continually improves its abilities, trains its officers in the state-of-the-art, and then advances that very state-of-the-art. I don't need to be there to know that their ability in documents and disguise is still unparalleled."

Q: What do you make of the situation in Iran now?

A: "Iran is still a pariah, caught up between the radical elements of Islam and the Arab spring. Hostage taking has become common, and as long as the West needs oil they will be able to threaten their neighbors and the rest of the world. A powerful argument for transitioning to renewable energy can be made here."

Q: There's a certain irony to Argo becoming a real movie. What are your thoughts on it?

A: ""Argo" is a magnificent movie. Ben Affleck did a great job. We worked closely with the screenwriter and it has been a very personal experience for me, one I will always treasure."

Q: Any favorite spy movies?

A: "Almost anything that John LeCarre does, and the Bond series. Those don't reflect real espionage, but they are certainly entertaining."

(Editing by Christine Kearney and Bernadette Baum)

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