Canada's Q4 GDP flat, growth at 1.8% for 2012

OTTAWA: Canada's economy grew 1.8 percent last year, a bit less than the central bank's forecast and down from 2.6 percent in 2011, the government statistics agency said on Friday.

Gross domestic product in the fourth quarter was up 0.2 percent, similar to the previous quarter's gains, as mining and oil and gas extraction was up and manufacturing recorded a significant decrease.

The arts and entertainment sector, transportation and warehousing as well as wholesale trade also declined while construction, the public sector, utilities and the finance and insurance sector increased in the last three months of 2012.

Household spending was up.

Business investment on machinery and equipment continued to be weak, with fewer purchases of heavy trucks and buses, and more aircraft and computer outlays. Following 12 months of anaemic government spending, it ticked up slightly in the fourth quarter of 2012.

Business inventories were "sharply lower" in the fourth quarter, said Statistics Canada. Manufacturers' and wholesalers' inventories were down while retailers' inventories rose.

Imports were down, and exports edged up. Disposable income inched up, but Canadians saved less.

- AFP/al

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J&K assembly adjourned after furore over Afzal issue

JAMMU: The Jammu and Kashmir assembly was rocked by repeated disruptions on Friday, which ultimately led to the House being adjourned for the day, as various parties demanded that Parliament attack convict Afzal Guru's mortal remains be handed over to his family.

Cutting across party lines, members of the House from the ruling National Conference as well as opposition PDP and CPM had moved adjournment motions seeking discussion on the situation in the aftermath of Guru's execution and handing over of his mortal remains to his family.

Led by the leader of the opposition Mehbooba Mufti, PDP legislators flashed placards and demanded suspension of the business of the House to discuss the issue, with CPM member MY Tarigami, too joining in urging the speaker Mubarak Gul to accept their demand.

But when the speaker tried to pacify them saying that a discussion would be held in due course, PDP members raised slogans like 'Guru ki body ko wapas karoo, wapas karoo' (Return Guru's body).

"If there is a serious issue, (then) you have to suspend the normal business and discuss (it). But I fail to understand the attitude of this government (since yesterday)," Mehbooba Mufti later told reporters here.

The protests continued for over 15 minutes, forcing the speaker to adjourn the House for 45 minutes.

As the House reassembled after the adjournment, the speaker said that he had received adjournment motions of five members of NC besides those from PDP and CPIM and that he would take a view on them.

However, PDP members continued their protest even as the speaker started discussion on the governor's address.

With noisy scenes continuing in the House, the speaker adjourned the House for a second time around noon and later for the day.

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Medicare paid $5.1B for poor nursing home care

SAN FRANCISCO (AP) — Medicare paid billions in taxpayer dollars to nursing homes nationwide that were not meeting basic requirements to look after their residents, government investigators have found.

The report, released Thursday by the Department of Health and Human Services' inspector general, said Medicare paid about $5.1 billion for patients to stay in skilled nursing facilities that failed to meet federal quality of care rules in 2009, in some cases resulting in dangerous and neglectful conditions.

One out of every three times patients wound up in nursing homes that year, they landed in facilities that failed to follow basic care requirements laid out by the federal agency that administers Medicare, investigators estimated.

By law, nursing homes need to write up care plans specially tailored for each resident, so doctors, nurses, therapists and all other caregivers are on the same page about how to help residents reach the highest possible levels of physical, mental and psychological well-being.

Not only are residents often going without the crucial help they need, but the government could be spending taxpayer money on facilities that could endanger people's health, the report concluded. The findings come as concerns about health care quality and cost are garnering heightened attention as the Obama administration implements the nation's sweeping health care overhaul.

"These findings raise concerns about what Medicare is paying for," the report said.

Investigators estimate that in one out of five stays, patients' health problems weren't addressed in the care plans, falling far short of government directives. For example, one home made no plans to monitor a patient's use of two anti-psychotic drugs and one depression medication, even though the drugs could have serious side effects.

In other cases, residents got therapy they didn't need, which the report said was in the nursing homes' financial interest because they would be reimbursed at a higher rate by Medicare.

In one example, a patient kept getting physical and occupational therapy even though the care plan said all the health goals had been met, the report said.

The Office of Inspector General's report was based on medical records from 190 patient visits to nursing homes in 42 states that lasted at least three weeks, which investigators said gave them a statistically valid sample of Medicare beneficiaries' experiences in skilled nursing facilities.

That sample represents about 1.1 million patient visits to nursing homes nationwide in 2009, the most recent year for which data was available, according to the review.

Overall, the review raises questions about whether the system is allowing homes to get paid for poor quality services that may be harming residents, investigators said, and recommended that the Centers for Medicare & Medicaid Services tie payments to homes' abilities to meet basic care requirements. The report also recommended that the agency strengthen its regulations and ramp up its oversight. The review did not name individual homes, nor did it estimate the number of patients who had been mistreated, but instead looked at the overall number of stays in which problems arose.

In response, the agency agreed that it should consider tying Medicare reimbursements to homes' provision of good care. CMS also said in written comments that it is reviewing its own regulations to improve enforcement at the homes.

"Medicare has made significant changes to the way we pay providers thanks to the health care law, to reward better quality care," Medicare spokesman Brian Cook said in a statement to AP. "We are taking steps to make sure these facilities have the resources to improve the quality of their care, and make sure Medicare is paying for the quality of care that beneficiaries are entitled to."

CMS hires state-level agencies to survey the homes and make sure they are complying with federal law, and can require correction plans, deny payment or end a contract with a home if major deficiencies come to light. The agency also said it would follow up on potential enforcement at the homes featured in the report.

Greg Crist, a Washington-based spokeswoman for the American Health Care Association, which represents the largest share of skilled nursing facilities nationwide, said overall nursing home operators are well regulated and follow federal guidelines but added that he could not fully comment on the report's conclusions without having had the chance to read it.

"Our members begin every treatment with the individual's personal health needs at the forefront. This is a hands-on process, involving doctors and even family members in an effort to enhance the health outcome of the patient," Crist said.

Virginia Fichera, who has relatives in two nursing homes in New York, said she would welcome a greater push for accountability at skilled nursing facilities.

"Once you're in a nursing home, if things don't go right, you're really a prisoner," said Fichera, a retired professor in Sterling, NY. "As a concerned relative, you just want to know the care is good, and if there are problems, why they are happening and when they'll be fixed."

Once residents are ready to go back home or transfer to another facility, federal law also requires that the homes write special plans to make sure patients are safely discharged.

Investigators found the homes didn't always do what was needed to ensure a smooth transition.

In nearly one-third of cases, facilities also did not provide enough information when the patient moved to another setting, the report found.

___

On the Web:

The OIG report: http://1.usa.gov/VaztQm

The Medicare nursing home database: http://www.medicare.gov/NursingHomeCompare/search.aspx?bhcp=1&AspxAutoDetectCookieSupport=1

___

Follow Garance Burke on Twitter at —http://twitter.com/garanceburke.

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Why Should We Care? The Politics of Picking a Pope

Feb 28, 2013 9:34am

                             (Image Credit: L’Osservatore Romano/Vatican/Getty Images)

ANALYSIS

VATICAN CITY – In a U.S presidential campaign, the New Hampshire primary is thought of as “retail politics,” where the candidates actually get to meet and have contact with real voters.

That’s Walmart, compared to a Vatican conclave. This process is more of a boutique.

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All the voters and all the viable candidates can fit into one room. In some cases, they have known each other – or known “of” each other – for years. In some cases, they have worked with (or against) each other in the daily management of the church.

It’s not just the fancy costumes, the churchly rituals or the sweep of history that makes this process so fascinating. There’s also the sheer human drama of it all.

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For the 115 men planning to take part in the conclave to elect a pope, all of whom have devoted their lives to the Catholic church, this choice might well be the most important contribution they make. A lifetime of service reduced to a single election.

It’s also crucial for the world’s 1.2 billion Roman Catholics.

The new pope will set the tone of the institution on issues of life and death: abortion, birth control, genetic medicine, euthanasia and more.

He’ll frame the church’s role in the moral debate about the way people live their lives, as individuals and as families. Divorce, gay rights, adoption, education, the role of women (not least in the church) are all areas in which previous pope’s have exerted tremendous influence.

He’ll instantly be the most powerful spiritual leader in the world, a global ambassador for Christian values (however he and the rest of the church interpret that mandate).

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Will he be able to win over a wayward flock? Many have left the church, bitterly disappointed by the betrayal of pedophile priests, the mismanagement of arrogant administrators or even what they perceive as the institution’s irrelevance in the modern era.

At its best, the church is a voice of compassion and social justice. But it has also, at times, been a voice of intolerance, as well as a bastion of the status quo.

On one level, this is local politics. Each voting cardinal – even the ones who live thousands of miles away – has a titular church, an actual church here in Rome assigned to them where they officially serve as the pastor. So the conclave represents the Roman clergy’s electing the next Bishop of Rome.

At another level, it’s global. Prelates from 50 countries do their best to discern (through the guidance of the Holy Spirit) how to make the universal church thrive in a new millennium.

Win or lose in a presidential election, we all know it’ll start all over again in four years’ time. There are checks and balances too, so, for better or worse, “change” tends to be largely a campaign slogan.

It would be sheer exaggeration to say any presidential contest were a battle for the soul of the United States.

But in a very real way that’s what this process is for the world’s largest church.

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U.S. to give Syrian rebels medical, food aid, not arms

ROME (Reuters) - The United States will send non-lethal aid directly to Syrian rebels for the first time, Secretary of State John Kerry said on Thursday, disappointing opponents of President Bashar al-Assad who are clamoring for Western weapons.

But in a change of emphasis, the mainly Western and Arab "Friends of Syria" group meeting in Rome "underlined the need to change the balance of power on the ground".

A final communique said participants would "coordinate their efforts closely so as to best empower the Syrian people and support the Supreme Military Command of the (rebel) Free Syrian Army in its efforts to help them exercise self-defense".

More than 70,000 Syrians have been killed in a fierce conflict that began with peaceful anti-Assad protests nearly two years ago. Some 860,000 have fled abroad and several million are displaced within the country or need humanitarian assistance.

Kerry, after the talks in Rome, said Washington would more than double its aid to the Syrian civilian opposition, giving it an extra $60 million to help provide food, sanitation and medical care to devastated communities.

The United States would now "extend food and medical supplies to the opposition, including to the Syrian opposition's Supreme Military (Council)", Kerry said.

In their communique, the "Friends of Syria" pledged more political and material support to the Syrian National Coalition, a fractious Cairo-based group that has struggled to gain traction inside Syria, especially among disparate rebel forces.

Riad Seif, a coalition leader, said before the Rome meeting that the opposition would demand "qualitative military support".

Another coalition official welcomed the result of the talks. "We move forward with a great deal of cautious optimism. We heard today a different kind of discourse," Yasser Tabbara said.

But the continued U.S. refusal to send weapons may compound the frustration that prompted the coalition to say last week it would shun the Rome talks. It attended only under U.S. pressure.

Many in the coalition say Western reluctance to arm rebels only plays into the hands of Islamist militants now widely seen as the most effective forces in the struggle to topple Assad.

However, a European diplomat held out the possibility of Western military support, saying the coalition and its Western and Arab backers would meet in Istanbul next week to discuss military and humanitarian support to the insurgents.

MEALS READY TO EAT

Kerry's offer of medical aid and Meals Ready to Eat (MREs), the U.S. army's basic ration, fell far short of rebel demands for sophisticated anti-tank and anti-aircraft weapons to help turn the tables against Assad's mostly Russian-supplied forces.

It also stopped short of providing other forms of non-lethal assistance such as bullet-proof vests, armored personnel vehicles and military training to the insurgents.

Last week the European Union opened the way for direct aid to Syrian rebels, but did not lift an arms embargo on Syria.

The Rome talks again signaled the lack of appetite among the United States and its allies for direct military intervention in Syria, after the withdrawal of U.S.-led troops from Iraq and the drawdown under way in Afghanistan.

The communique called for an immediate halt to "unabated" arms supplies to Damascus by third countries, referring mostly to Assad's allies Russia and Iran.

It also said Syria must immediately stop indiscriminate bombardment of populated areas, which it described as crimes against humanity. NATO officials say Assad's military has fired ballistic missiles within Syria, which the government denies.

Human Rights Watch has reported that at least 171 civilians were killed in four Scud missile strikes last week.

The "Friends of Syria" pledged "more political and material support to the coalition as the sole legitimate representative of the Syrian people and to get more concrete assistance inside Syria", but gave no details on exactly what would be provided.

Kerry said earlier this week he would not leave the Syrian opposition "dangling in the wind", unsure of getting support.

But the White House continues to resist providing weaponry to the rebel forces, arguing there is no way to guarantee the arms might not fall into the hands of Islamist militants who might eventually use them against Western or Israeli targets.

"HUGE DEBATE"

U.S. officials have said that the U.S. Defense and State departments, under former Secretary of Defense Leon Panetta and former Secretary of State Hillary Clinton, privately recommended that the White House arm the rebels, but were overruled.

"It's a huge debate inside the administration between those that have to deal with Syria on an everyday basis, the State Department and DoD (Defense) particularly, and the White House, which ... until now has vetoed any kind of outreach to the armed groups," said Andrew Tabler, senior fellow at the Washington Institute for Near East Policy, a think-tank.

The United States says it has already provided more than $50 million in non-lethal assistance such as communications gear and governance training to Syria's civilian opposition.

A source in the Syrian coalition, however, said even the extra $60 million promised by Washington was a pittance compared to what he said was the $40 million a day in humanitarian aid needed for Syrian refugees and internally displaced persons.

The United States has provided some $365 million in humanitarian aid for Syrian refugees in countries such as Turkey, Jordan and Lebanon and for internally displaced people, channeling this money through non-governmental organizations.

More than 40,000 people a week are fleeing Syria and the total number of refugees will likely pass 1 million in less than a month, far sooner than the United Nations had forecast, a senior U.N. official told the Security Council on Wednesday.

U.N. High Commissioner for Refugees António Guterres said his agency had registered 936,000 Syrians across the Middle East and North Africa, nearly 30 times as many as in April last year.

"We expected to have 1.1 million Syrian refugees by June. If things continue to accelerate like this, it will take less than a month to reach that number," he told the 15-member council.

(Writing by Alistair Lyon; Editing by Mark Heinrich)

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US pledges US$60m for Syria opposition

ROME: The United States on Thursday pledged US$60 million in "non-lethal" assistance for the Syrian political opposition to President Bashar al-Assad as well as the first direct US aid to rebel fighters in the form of food and medical assistance.

"The US will be providing an additional US$60 million in non-lethal assistance to support the efforts of the Syrian opposition coalition over the coming months," US Secretary of State John Kerry said after talks between the 11-nation Friends of Syria and the opposition in Rome.

"We will be sending medical supplies and food to the (rebel) Supreme Military Council, so there will be direct assistance," he added.

"All Syrians... must know that they can have a future," Kerry said.

A State Department official said the US$60 million (49 million euros) in aid would be used to help local councils and communities in liberated areas in Syria, to provide basic goods and services and "fulfil administrative functions including security, sanitation and education services."

The official said the new money was in addition to US$50 million in non-lethal support Washington has already provided to help Syrian opposition activists, including communications equipment.

That aid was provided through Turkey, while the United States has also contributed some US$380 million dollars in humanitarian aid through UN agencies and aid groups.

Asked about congressional approval of the funding, Kerry told journalists he was "very confident for rapid delivery".

He said the goal was to give a boost to the opposition and show Assad that he could not use violence to resolve the conflict.

"This is the beginning of the process that will change (Assad's) calculation."

The announcement of aid came as news broke of a car bomb explosion in a suburb of the flashpoint city of Homs that left "dead and wounded", according to state news agency SANA, which blamed "terrorists" for the blast.

Kerry had earlier met for about an hour with opposition leader Ahmed Moaz al-Khatib at the 16th-century Villa Madama on a hilltop above Rome.

The Rome talks come two days before an important meeting of the main opposition National Coalition on Saturday in Istanbul, where the umbrella group is to elect a prime minister and government to run parts of Syria seized from Assad's control.

A watchdog reported, meanwhile, that rebels had seized control of the Umayyad Mosque in the second city of Aleppo after days of fierce clashes that damaged the historic building.

Regime troops were forced to withdraw at dawn, taking up positions in buildings around the landmark structure, said the Syrian Observatory for Human Rights.

Officials from the United States, Britain, France, Germany, Italy, Turkey, Egypt, Jordan, Saudi Arabia and the United Arab Emirates took part in the Rome talks, as well as EU foreign policy chief Catherine Ashton.

The Syrian opposition -- which initially vowed a boycott -- had been lured back to the meeting after the US and Britain promised specific offers of help.

In Paris on Wednesday, Kerry said he wanted to hear from Khatib about how best to end the violence in Syria, where the United Nations says at least 70,000 have died and hundreds of thousands have been uprooted since the conflict broke out in March 2011.

US media including The New York Times and Washington Post have reported that the "non-lethal" aid to be provided to the opposition could include equipment such as vehicles, communications gear and night-vision goggles.

The New York Times also reported that a US mission training rebels at a base in the region was already under way.

Russia, Assad's most powerful supporter, has kept up pressure for the two sides in the Syrian conflict to sit down for negotiations.

In Moscow, French President Francois Hollande said ahead of a meeting with Russian counterpart Vladimir Putin that a political solution to the Syrian crisis was possible within weeks.

"I think that in the next few weeks we will manage to find a political solution that will stop the conflict from escalating," Hollande told Echo of Moscow radio station in comments translated into Russian.

Hollande stressed Russia's key role as a member of the UN Security Council, where it has vetoed resolutions that would have put pressure on Assad to end hostilities.

"We must finally start the process of political dialogue that has not yet started on the territory of Syria."

"President Putin and I both understand all the seriousness of the situation. And even though our positions at the moment differ, we want to find the best solution for Syria."

- AFP/xq

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Left returns to power in Tripura for 5th consecutive time; Congress retains Meghalaya

AGARTALA: The Left Front in Tripura today retained power for the fifth consecutive time since 1993 with the coalition securing a three-fourths majority by winning 50 of the 60 Assembly seats.

While CPM, which contested in 55 seats, secured win in 49 seats, coalition partner CPI won one seat of the two it had contested. However, RSP which fought in two seats and Forward Bloc in one, failed to open their accounts.

The Left Front also increased its tally from 49 seats in 2008 and 42 seats in 2003, paving the way for the seventh Left Front government since 1978 in the Northeast state.

The Congress managed to retain 10 seats of the 48 in which it had contested, while allies Indigenous Nationalist Party of Tripura and National Conference of Tripura were unable to win a single seat. The INPT and the NCT had contested in 10 and one seats, respectively.

All ministers of the outgoing ministry except science and technology minister Joy Gobinda Debroy of RSP were re-elected.

Chief minister Manik Sarkar won from the Dhanpur constituency where he defeated his nearest rival -- Congress' Shah Alam -- by 6,017 votes. Sarkar had won by 4,000 votes in the last Assembly elections.

Finance minister Badal Chowdhury made electoral history by defeating his nearest rival, a Congress candidate, by 12,429 votes in the Hrishyamukh constituency.

Other prominent Front leaders who won are Agriculture Minister Aghore Debbarma (Asharambari constituency), Industries Minister Jitendra Chowdhury (Manu) and Jail Minister Manindra Reang (Shantirbazar; ST).

Among Congress winners were Leader of the Opposition Ratan Lal Nath (Mohanpur constituency) and TPCC President Sudip Roy Burman (Agartala).

INPT president Bijoy Hrankhawl (Ambassa) and former TPCC president Surajit Dutta (Ramnagar) were among prominent candidates who lost in electoral battle.

CPM state party secretary Bijan Dhar said: "It is a victory of the people of the state, and a victory of peace and development and good governance of the sixth Left Front government."

Leader of the opposition Ratan Lal Nath said, "We accept defeat and will review the causes for it.

Nagaland for NPF and Congress wins Meghalaya

The Left Front stormed back to power in Tripura and the Naga People's Front (NPF) in Nagaland, while the Congress, which fared poorly in both states, emerged as the single largest party in Meghalaya with two seats short of absolute majority in the assembly election results declared today.

The three outgoing chief ministers of Tripura, Nagaland and Meghalaya, Manik Sarkar, Neiphu Rio and Mukul Sangma respectively were victorious.

The Left Front, which has won for the fifth consecutive term in Tripura, secured a three fourths majority with 50 of the 60 seats, with major partner CPM itself securing 49.

In Nagaland, NPF swept back to power for the third consecutive time winning absolute majority securing 38 of the 59 seats. Election in one seat was countermanded following the death of a candidate.

Congress could win only 10 of the 48 seats it contested in Tripura while it could manage to win only eight seats compared to the 18 it clinched last time in Nagaland.

In Meghalaya, the Congress bagged 29 of the 60 seats, falling two short of an absolute majority.

But the Congress improved its tally by securing four more than its tally in 2008.

The results were a shot in the arm of Congress chief minister Mukul Sangma who faced stiff opposition from old warhorse P A Sangma whose National People's Party managed to win just two seats.

In Tripura, the Left Front increased its tally from 49 seats in 2008 and 42 seats in 2003 paving the way for the installation of the seventh Left Front government since 1967.

Congress allies INPT and National Conference of Tripura, which had virtually revolted over allocation of seats before being pacified, drew a blank.

All ministers of the outgoing ministry except Science and Technology minister Joy Gobinda Debroy of RSP were re-elected.

Finance minister Badal Chowdhury made electoral history by defeating his nearest Congress rival by 12,429 votes in the Hrishyamukh constituency.

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Vt. lye victim gets new face at Boston hospital

BOSTON (AP) — A Vermont woman whose face was disfigured in a lye attack has received a face transplant.

Doctors at Boston's Brigham and Women's Hospital say 44-year-old Carmen Blandin Tarleton underwent the surgery earlier this month.

A team worked 15 hours to transplant the facial skin, including the neck, nose, lips, facial muscles, arteries and nerves.

The 44-year-old Tarleton, of Thetford, Vt., was attacked by her former husband in 2007. He doused her with industrial strength lye. She suffered chemical burns over 80 percent of her body. The mother of two wrote a book about her experience that describes her recovery.

It was the fifth face transplant at the Boston hospital.

Physicians are planning to discuss the case Wednesday at the hospital.

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Pope Thanks Crowd in Final Address

On his final full day as the leader of the Roman Catholic Church, Pope Benedict XVI thanked a huge crowd for respecting his historic decision to step down and told them that God will continue to guide the church.

"The decision I have made, after much prayer, is the fruit of a serene trust in God's will and a deep love of Christ's Church," Benedict said to cheers in his last public words as pope.

Benedict, 85, is the first pope to resign in 600 years. He told the crowd today that he was "deeply grateful for the understanding, support and prayers of so many of you, not only here in Rome, but also throughout the world."

Pope Benedict's Last Sunday Prayer Service

Under sunny skies on this late February day, hundreds of thousands of people, some waving flags, some banners, flocked to Vatican City to see Benedict make a final lap around St. Peter's Square. Throughout his eight-year papacy, Benedict has conducted a weekly audience from St. Peter's. Before delivering his last papal address today, Benedict waved to the festive group of supporters as he toured the square in his glass-encased popemobile.

The city of Rome planned for more than 200,000 people to head to the Vatican for today's event. Streets around St. Peter's were blocked off to cars as pedestrians from around the world headed to the square.

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The conclave to elect Benedict's replacement will start next month at a date yet to be determined. Benedict issued a decree known as a "motu poprio" that will allow cardinals to convene the conclave sooner than the March 15 date that would have been mandated under the old rules.

Benedict today asked the faithful to pray for him and for the new pope.

"My heart is filled with thanksgiving to God who ever watches over his church," Benedict said.

The German-born Benedict, who had appeared frail at times in recent months, seemed more energized in his remarks today. He has said he will devote more time to prayer and meditation after he leaves the papacy.

Benedict will meet Thursday with his cardinals in the morning and then flies by helicopter at 5 p.m. to Castel Gandolfo, the papal residence south of Rome. Benedict will greet parishioners there from the palazzo's balcony, his final public act as pope.

Then, at 8 p.m., the exact time at which his retirement becomes official, the Swiss Guards standing outside the doors of the palazzo at Castel Gandolfo will go off duty, their service protecting the head of the Catholic Church finished.

In retirement, Benedict will continue to wear white and will be called "Pope Emeritus," or the "Supreme Roman Pontiff Emeritus" or "Your Holiness," the Vatican announced Tuesday. Benedict will ditch his trademark red shoes, opting for a pair of brown shoes given to him on a trip to Mexico. But he will still reside on Vatican grounds in a former nunnery.

Benedict's final days as pope have been marked by controversy. For nearly a week now Italian newspapers speculated that Benedict really resigned because of a dossier he was given detailing a sex and blackmail scandal in the Catholic Church. The Italian media news reports do not state any attribution.

It turns out a dossier does exist. The Vatican spokesman Monday underscored that the contents of the dossier are known only to the pope and his investigators, three elderly prelates whom the Italian papers have nicknamed "the 007 cardinals."

But the dossier itself will remain "For the Pope's Eyes Only."

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Iran upbeat on nuclear talks, West wary

ALMATY (Reuters) - Iran gave an upbeat assessment of two days of nuclear talks with world powers that ended on Wednesday, but Western officials said Tehran must start taking concrete steps to ease mounting concerns about its atomic activity.

The first negotiations between Iran and six world powers in eight months ended without a breakthrough in Almaty, but they agreed to meet again at expert level in Istanbul next month and resume political discussions in the Kazakh city on April 5.

Israel, assumed to be the Middle East's only nuclear-armed power, is watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to stop it from acquiring nuclear weapons. Iran denies any such aim.

Iran's foreign minister said he was optimistic an agreement could be reached with the powers - the United States, France, Russia, Britain, Germany and China - on the country's disputed nuclear program.

"Very confident," Ali Akbar Salehi told Reuters when asked on the sidelines of a U.N. conference in Vienna how confident he was of a positive outcome.

The six powers offered at the February 26-27 Almaty meeting to lift some sanctions if Iran scaled back nuclear activity that the West fears could be used to build a bomb.

Tehran, which says its program is entirely peaceful, did not agree to do so and the sides did not appear any closer to a deal to resolve a decade-old dispute that could lead to another war in the Middle East if diplomacy fails.

But Iran still said the talks were a positive step in which the six powers tried to "get closer to our viewpoint".

Western officials had made clear they did not expect major progress in Almaty, aware that the closeness of Iran's presidential election in June is raising political tensions in Tehran and makes significant concessions unlikely.

"I hope the Iranian side is looking positively on the proposal we put forward," said European Union foreign policy chief Catherine Ashton, who led the talks on behalf of the powers. "We have to see what happens next."

The United States did not expect a breakthrough and "the result was clearly in line with those expectations," a senior U.S. official said.

The meeting was "useful" as the two sides agreed dates and venues for follow-up talks but there was a need for progress on confidence building measures, the official added.

UNDERGROUND NUCLEAR SITE

The West's immediate priority is that Iran halts higher-grade uranium enrichment and closes an underground facility, Fordow, where this work is carried out. The material is a relatively short technical step from bomb-grade uranium.

"What we care about at the end is concrete results," the U.S. official said.

One diplomat in Almaty said the Iranians appeared to be suggesting at the negotiations that they were opening new avenues, but that it was not clear if this was really the case.

Both sides said experts would meet for talks in the Turkish city of Istanbul on March 18 and that political negotiators would return to Almaty on April 5-6.

Russian negotiator Sergei Ryabkov confirmed that the powers had offered to ease sanctions on Iran if it stops enriching uranium to 20 percent fissile purity - a short technical step from weapons grade - at the Fordow underground site where it carries out its most controversial uranium enrichment work.

Western officials said the offer of sanctions relief included a resumption of trade in gold and precious metals.

One diplomat said that lifting an embargo on imports of Iranian petrochemical products to Europe, if Iran responded, was also on the table. But a U.S. official said the world powers had not offered to suspend oil or financial sanctions.

The sanctions are hurting Iran's economy and its chief nuclear negotiator, Saeed Jalili, suggested Iran could discuss its production of higher-grade nuclear fuel, although he appeared to rule out shutting Fordow.

In comments in Persian translated into English, Jalili told a news conference Fordow was under the supervision of the U.N. nuclear watchdog and there was no justification for closing it.

MOOD "MORE OPTIMISTIC"

Asked about the production of 20-percent enriched fuel, he reiterated Iran's position that it needed this for a research reactor and had a right to produce it.

Iran says its enrichment program is aimed solely at fuelling nuclear power plants so that it can export more oil, and that Israel's assumed nuclear arsenal is the main threat to peace in the region.

But Jalili did indicate that Iran might be prepared to talk about the issue, saying: "This can be discussed in the negotiations ... in view of confidence building."

Iran has also previously suggested that 20-percent enrichment was up for negotiation if it received the fuel from abroad instead. It also wants sanctions lifted.

"While an agreement to meet again may not impress skeptics of diplomacy, an important development did occur," said Trita Parsi, an expert on Iran. "The parties began searching for a solution by offering positive measures in order to secure concessions from the other side.

Another expert, Dina Esfandiary of the International Institute for Strategic Studies, said: "I note that the mood is more optimistic and that's great, but a deal still hasn't been reached and in my view its unlikely to be reached before the Iranian elections have come and gone."

(Additional reporting Fredrik Dahl in Almaaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Jon Hemming)

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