French Security warns of Islamic State plans for waves of attacks

French soldiers patrol in front of the Festival Palace before the opening of the 69th Cannes Film Festival in Cannes

By John Irish

PARIS (Reuters) – Islamic State militants are gearing up for a campaign of bomb attacks on large crowds in France, host to next month’s Euro 2016 soccer championships, its spy chief has said.

Rare remarks by Patrick Calvar, the head of France’s DGSI internal intelligence agency, to the parliament’s defense committee spelled out “a new form of attack … characterized by placing explosive devices in places where there are large crowds and repeating this type of action to create a climate of maximum panic.

“Clearly, France is the most threatened and we know that Daesh (Islamic State) is planning new attacks,” Calvar told the committee on May 10, according to a transcript of his testimony released to the media on Thursday.

The comments came six months after militants killed 130 people in coordinated assaults on cafes, bars, a soccer stadium and a music hall across Paris.

He said the militant group had the numbers to launch the new attacks, including some 645 French citizens or residents currently in Syria or Iraq, of which 400 were fighters. A further 201 were either in transit to or from the region, he said.

Euro 2016 starts on June 10 and runs for a month at 10 stadiums across France. About 2.5 million spectators are expected for 51 soccer matches involving 24 teams. There will also be “fan zones” for crowds watching games on big screens in major cities.

France’s police force is stretched after two militant attacks last year and regular street protests.

However, the government say all measures are in place to ensure it runs smoothly.

“We will not drop our guard,” Prime Minister Manuel Valls told RTL radio on Thursday when asked about Calvar’s comments.

In a reminder of the challenges facing security forces, a fake bomb left behind after a training exercise at Manchester United’s stadium in Britain forced the evacuation of the 75,000-seater ground and the abandonment of a match last weekend.

Referring to the Arabic acronym for Islamic State, Calvar said Daesh was still using the same migrant routes through the Balkans to get its fighters into Europe.

However, with the group under pressure from U.S.-led air strikes in Syria it would want to hit back in Europe to show its supporters that it was still strong.

“It’s in a position where it would try to hit as quickly as possible and as hard as possible,” Calvar said.” It is facing military difficulties on the ground and so will want to divert attention and avenge coalition air strikes,” he said.

(Reporting By John Irish; Editing by Andrew Callus/Jeremy Gaunt)

EgyptAir jet missing after mid-air plunge

Unidentified relatives and friends of passengers who were flying in an EgyptAir plane that vanished from radar en route from Paris to Cairo react as they wait outside the Egyptair in-flight service building where relatives are being held at Cairo International Airport, Egypt

By Lin Noueihed and Lefteris Papadimas

CAIRO/ATHENS (Reuters) – An EgyptAir jet carrying 66 passengers and crew from Paris to Cairo disappeared from radar over the Mediterranean sea on Thursday after swerving in mid-air and plunging from cruising height. French President Francois Hollande confirmed the aircraft “came down and is lost”.

Egyptian Prime Minister Sherif Ismail announced a search was under way for the missing Airbus A320 but it was too early to rule out any explanation, including an attack like the one blamed for bringing down a Russian airliner over Egypt’s Sinai peninsula last year.

Officials with the airline and the Egyptian civil aviation department told Reuters they believed the Airbus had crashed into the Mediterranean between Greece and Egypt.

In Athens, Greek Defence Minister Panos Kammenos said the Airbus had first swerved 90 degrees to the left, then spun through 360 degrees to the right. After plunging from 37,000 feet to 15,000, it vanished from Greek radar screens.

Greece deployed aircraft and a frigate to the area to help with the search. A defense ministry source said authorities were also investigating an account from the captain of a merchant ship who reported a ‘flame in the sky’ about 130 nautical miles south of the island of Karpathos.

According to Greece’s civil aviation chief, calls from Greek air traffic controllers to the jet went unanswered just before it left the country’s airspace, and it disappeared from radar screens soon afterwards.

By early afternoon, the search in the Mediterranean had yet to turn up anything. “Absolutely nothing has been found so far,” a senior Greek coastguard official told Reuters.

There was no official suggestion of whether the disappearance was due to technical failure or any other reason such as sabotage by ultra-hardline Islamists, who have targeted airports, airliners and tourist sites in Europe, Egypt, Tunisia and other Middle Eastern countries over the past few years.

The aircraft was carrying 56 passengers – with one child and two infants among them – and 10 crew, EgyptAir said. They included 30 Egyptian and 15 French nationals, along with citizens of 10 other countries.

Asked if he could rule out that terrorists were behind the incident, Prime Minister Ismail told reporters: “We cannot exclude anything at this time or confirm anything. All the search operations must be concluded so we can know the cause.”

In Paris, Hollande also said the cause remained unknown. “Unfortunately the information we have … confirms to us that the plane came down and is lost,” he said. “No hypothesis can be ruled out, nor can any be favored over another.”

With its archeological sites and Red Sea resorts, Egypt is traditionally a popular destination for Western tourists. But the industry has been badly hit following the downing of the Russian Metrojet flight last October, killing all 224 people on board, as well as by an Islamist insurgency and a string of bomb attacks.

NO RESPONSE

Greek air traffic controllers spoke to the pilot as the jet flew over the island of Kea, in what was thought to be the last broadcast from the aircraft, and no problems were reported.

But just ahead of the handover to Cairo airspace, calls to the plane went unanswered, before it dropped off radars shortly after exiting Greek airspace, Kostas Litzerakis, the head of Greece’s civil aviation department, told Reuters.

“During the transfer procedure to Cairo airspace, about seven miles before the aircraft entered the Cairo airspace, Greek controllers tried to contact the pilot but he was not responding,” he said.

Greek authorities are searching in the area south of the island of Karpathos without result so far, Defence Minister Kammenos told a news conference.

“At 3.39am (0039 GMT) the course of the aircraft was south and south-east of Kassos and Karpathos (islands),” he said. “Immediately after, it entered Cairo FIR (flight information region) and made swerves and a descent I describe: 90 degrees left and then 360 degrees to the right.”

The Airbus plunged from 37,000 feet (11,280 meters) to 15,000 feet before vanishing from radar, he added.

Egyptian Civil Aviation minister Sherif Fathi said authorities had tried to resume contact but without success.

“NO ONE KNOWS ANYTHING”

At Cairo airport, authorities ushered families of the passengers and crew into a closed-off waiting area.

Two women and a man, who said they were related to a crew member, were seen leaving the VIP hall where families were being kept. Asked for details, the man said: “We don’t know anything, they don’t know anything. No one knows anything.”

Ayman Nassar, from the family of one of the passengers, also walked out of the passenger hall with his daughter and wife in a distressed state. “They told us the plane had disappeared, and that they’re still searching for it and not to believe any rumors,” he said.

A mother of flight attendant rushed out of the hall in tears. She said the last time her daughter called her was Wednesday night. “They haven’t told us anything,” she said.

EgyptAir said on its Twitter account that Flight MS804 had departed Paris at 23:09 (CEST). It disappeared at 02:30 a.m. at an altitude of 37,000 feet ) in Egyptian air space, about 280 km (165 miles) from the Egyptian coast before it was due to land at 03:15 a.m.

In Paris, a police source said investigators were now interviewing officers who were on duty at Roissy airport on Wednesday evening to find out whether they heard or saw anything suspicious. “We are in the early stage here,” the source said.

Airbus said the missing A320 was delivered to EgyptAir in November 2003 and had operated about 48,000 flight hours.

The missing flight’s pilot had clocked up 6,275 hours of flying experience, including 2,101 hours on the A320, while the first officer had 2,766 hours, EgyptAir said.

At one point EgyptAir said the plane had sent an emergency signal at 04:26 a.m., two hours after it disappeared from radar screens. However, Fathi said later that further checks found that no SOS was received.

FRANCE, EGYPT TO COOPERATE

The weather was clear at the time the plane disappeared, according to Eurocontrol, the European air traffic network.

“Our daily weather assessment does not indicate any issues in that area at that time,” it said.

Under U.N. aviation rules, Egypt will automatically lead an investigation into the accident assisted by countries including France, where the jet was assembled, and the United States, where engine maker Pratt & Whitney is based.

Russia and Western governments have said the Metrojet plane that crashed on Oct. 31 was probably brought down by a bomb, and the Islamic State militant group said it had smuggled an explosive device on board.

That crash called into question Egypt’s campaign to eradicate Islamist violence. Militants have stepped up attacks on Egyptian soldiers and police since Sisi, then serving as army chief, toppled elected President Mohamed Mursi, an Islamist, in 2013 after mass protests against his rule.

In March, an EgyptAir plane flying from Alexandria to Cairo was hijacked and forced to land in Cyprus by a man with what authorities said was a fake suicide belt. He was arrested after giving himself up.

EgyptAir has a fleet of 57 Airbus and Boeing jets, including 15 of the Airbus A320 family of aircraft, according to airfleets.com.

(Additional reporting by Amina Ismail, Ali Abdelatti, Mostafa Hashem, Asma Alsharif, Victoria Bryan, Siva Govindasamy, Sophie Louet, Tim Hepher, Michele Kambas, George Georgiopoulos, Renee Maltezou, Brian Love and Miral Fahmy.; Writing by Lincoln Feast, Samia Nakhoul and David Stamp; Editing by Bill Tarrant, Paul Tait and Peter Graff)

France hit by rail strike, demo by weary police

A police car burns during a demonstration against police violence and against French labour law reform in Paris

By Brian Love

PARIS (Reuters) – Strikes by French railway and port workers halved train services and prompted cancellation of ferry links to Britain on Wednesday as labor unions sought to force President Francois Hollande’s government into retreat on labor law reforms.

After weeks of protests in which hundreds of their number have been hurt, police held a rally of their own to vent frustration over the stresses of near daily clashes with violent youths on the fringes of the anti-reform movement.

As they did so, a crowd chanting “police everywhere, justice nowhere” surrounded a police patrol car, which went up in flames after the police officers inside fled the scene, a few hundred meters from where their colleagues were rallying.

The public prosecutor’s office said after the incident it was opening an inquiry into attempted homicide.

Wednesday’s rail strikes, set to run until Friday morning, reduced high-speed and inter-city services by 40 to 50 percent, also heavily disrupting local and suburban commuter lines, the SNCF state railway company said.

Strike turnout, the SNCF said, was about 15 percent, lower than in previous stoppages.

Brittany Ferries announced mass cancellations of connections between Britain and northern France, where port workers joined the industrial action.

Truckers maintained blockades set up on Tuesday in a bid to strangle deliveries in and out of fuel and food distribution depots.

At issue is one of Hollande’s flagship reforms a year from a presidential election – law changes designed to make it easier for employers to hire and fire staff and to opt out of cumbersome national rules in favor of in-house accords on pay.

Hollande says the change will encourage firms to recruit and combat an unemployment rate that has remained above 10 percent.

The 61-year-old leader has said he will not consider running for re-election if he fails to make inroads against joblessness. Critics say the reform will totally undermine the standards of protection enshrined for decades in national labor law.

“ANTI-COP HATRED”

The plan, which pollsters say is opposed by three in four French people, has provoked weeks of often violent protests.

It has also increased pressure on police who were already stretched by extra duties following last November’s deadly militant Islamist attacks on France and are also gearing up for the Euro 2016 soccer tournament that kicks off on June 10.

Condemning what it described as mounting “anti-cop hatred”, the Alliance police union called for Wednesday’s rally in the Place de la Republique, a central Paris square that has seen regular skirmishes in past weeks between riot police and youths hurling petrol bombs and paving stones.

Paris police chief Michel Cadot banned a counter-protest by a group that accuses the police of brutality.

Interior Minister Bernard Cazeneuve defended the police and said 350 of them had been injured in standoffs that had produced 1,300 arrests in just two months.

Further strikes and protests are planned for the rest of the week in what labor unions, along with a youth protest movement called Nuit Debout or Night Rising, hope will prove a big enough show of force to make Hollande reconsider.

(Additional reporting by Gerard Bon; Editing by Andrew Callus and Gareth Jones)

Netanyahu tells France’s Ayrault he opposes peace conference

Israeli Prime Minister Benjamin Netanyahu shakes hands with French Foreign Minister Jean-Marc Ayrault

By Jeffrey Heller

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu told France’s foreign minister on Sunday that Israel remained opposed to a French initiative for an international conference to try to revive peace talks.

Palestinians welcomed the proposal but Israel is concerned that the conference that France seeks to hold in the autumn would try to dictate terms for a peace deal.

In public remarks to his cabinet after meeting France’s Jean-Marc Ayrault, Netanyahu said: “I told him the only way to advance genuine peace between us and the Palestinians is through direct negotiations between us and them, without preconditions.”

Israel made the same argument in the formal response it gave last month. France hopes an international conference would set out a framework for peace negotiations, after U.S. efforts to broker a two-state deal collapsed in April 2014.

“I know that Netanyahu does not agree (to the French proposal),” Ayrault told reporters after his talks with the Israeli leader in Jerusalem and a meeting with Palestinian President Mahmoud Abbas in the occupied West Bank.

Ayrault said France would continue to pursue the initiative and that its ultimate goal was for both sides to return to direct talks, with international intervention laying the groundwork.

“It is very clear to us, and I said this today to both the prime minister and to President Abbas, that we cannot take the place of the two parties,” he said at Tel Aviv’s Ben-Gurion airport at the end of a one-day visit to promote the plan.

“Only they can conduct direct negotiations to achieve a solution,” Ayrault said. “But because things are currently stuck … external intervention is necessary to provide renewed momentum.”

An international gathering of ministers, tentatively planned for May 30 in Paris, is set to include the Middle East Quartet (the United States, Russia, the European Union and the United Nations), the Arab League, the U.N. Security Council and about 20 countries, without Israeli or Palestinian participation.

Diplomats say that meeting will package all economic incentives and other guarantees that various countries have offered in previous years to create an agenda for an autumn peace conference.

While objecting to the French initiative, Netanyahu, a right-winger, has stopped short of saying Israel would boycott it.

Keeping his options open could help Netanyahu in preliminary contacts with the main opposition Zionist Union party – a centre-left group likely to favour participating – on expanding his ruling coalition that has a mere one-seat parliamentary majority.

(Additional reporting by John Irish in Paris; Editing by Robin Pomeroy)

France’s government faces nationwide protests over labor reform

By Brian Love

PARIS (Reuters) – France’s government faced nationwide protests and a no confidence vote in parliament on Thursday after opting to bypass widespread opposition and impose labor reforms that will make hiring and firing easier.

As crowds gathered in cities across France for another day of demonstrations, the CGT labor union called for weekly rolling strikes at the SNCF state rail company from Tuesday night until Friday morning.

Prime Minister Manuel Valls’ Socialist administration was expected to survive the confidence vote.

But a series of strikes and waves of street protests that have shown no sign of easing since they began in late March suggest popular discontent over a reform that pollsters say three out of four people oppose is becoming more entrenched.

“It’s time to move up a gear,” Philippe Martinez, head of the CGT union, said. The main objection to the reform from unions is that it would allow firms to adopt in-house terms on pay and conditions instead of complying with national standards.

The official reason for the rail strike call is a standoff with management over conditions, but its timetable dovetails with the broader protests against government policy.

As crowds gathered in cities across France, government spokesman Stephane Le Foll said there was no question of withdrawing the reform.

But it has left an already deeply unpopular President Francois Hollande, who narrowly survived a rebellion by dissenters in his own party on Wednesday, in an uncomfortable position a year from elections.

The reform is also under fire from a rolling youth protest movement known as Nuit Debout, or ‘Night Uprising’.

Since the protests began, several hundred police have been injured in clashes, often with hooded youths hurling stones and petrol bombs. On Thursday, news television channels showed footage of secondary-school pupils blocking schools entrances with garbage bins.

The interior ministry advised motorists to stay away from central Paris ahead of an afternoon march and also reported traffic halted by road blockages in some places.

Paris Mayor Anne Hidalgo, a prominent Socialist, added her voice to the dissenters, declaring on Europe 1 radio: “This law does just nothing for social justice.”

Hollande has several other problems piling up.

Media speculation is rife that his youthful economy minister Emmanuel Macron could run for president in the election scheduled for May 2017.

His government has also been caught up in a controversy over sexual harassment in the corridors of power.

After the resignation a politician accused of harassing female colleagues, Finance Minister Michel Sapin, a close Hollande ally, on Wednesday admitted behaving inappropriately toward a female journalist.

(Reporting By Brian Love; Editing by Andrew Callus and John Stonestreet)

U.S. Bullet train proposals shun public funds, favor private cash

China Railway High-speed Harmony bullet trains are seen at a high-speed train maintenance base in Wuhan

By Robin Respaut

(Reuters) – It took years of lawsuits and political battles for California to finally break ground last year on the nation’s first bullet train, which aims to connect San Francisco to Los Angeles by 2029.

High-speed rail advocates had hoped the line, supported by more than $13 billion in state and federal money, would inspire similar government-financed projects. Instead, its many delays have left rail groups wary of accepting public funds for projects they are proposing in three other states.

Companies in Texas, Minnesota and Nevada all plan to tap private cash from investors globally, with help from foreign train makers and governments eager to export train technology. The projects would rely on partnerships with Japanese or Chinese firms that face saturated train markets at home.

“The United States is the Holy Grail of deployment for Japan, China, France, Germany and Spain,” said Tim Keith, Texas Central CEO.

California’s example shows that taking taxpayer money opens the door to political and legal challenges that can drag out planning, bidding and approvals for years, private rail advocates said. Companies now see a quicker – even cheaper – path by largely avoiding such headaches.

“All the rules relating to public engagement start the day you take public funding,” said Wendy Meadley, chief strategy officer for North American High Speed Rail Group’s project in Minnesota. With private financing, she said, opponents “can’t make thousands of public records requests and run the project over.”

The company said last year it would seek money from Chinese investors. Now, it said it is considering two foreign partners for the $4.2 billion project, which seeks to connect the twin cities of Minneapolis and St. Paul to the internationally renowned Mayo Clinic in Rochester, Minnesota, by 2022.

Texas Central is paying for engineering studies with $75 million from Texas investors, $40 million from a state-backed Japanese development fund and about $130 million in design work from two firms. The Dallas-to-Houston rail line is projected to cost $12 billion and be completed by 2021.

In Nevada, privately financed XpressWest plans to link Las Vegas to Southern California. Started by Las Vegas developer Marnell Companies, the company formed a joint venture last fall with a consortium of Chinese firms, infusing $100 million into the project expected to break ground as soon as this year.

XpressWest officials declined to comment.

GOVERNMENT JUMPSTART

Some experts remain skeptical that bullet trains can work without government money to finance initial legs of construction.

Rail lines are generally profitable once in operation, said Jim Steer, director of UK-based high-speed rail research organization Greengauge 21. But operating profits are unlikely to be enough to repay massive construction costs.

“No private party is actually going to stump up the kind of money needed to create these things,” said Steer.

Supporters of the new rail lines said investors can expect solid returns based on ticket sales and profits from high-end real estate developments near stations.

Current economic trends also make private financing for infrastructure projects easier to secure. Interest rates at historic lows have created global demand for stable, long-term investments, igniting interest in infrastructure projects from banks and major investors, such as pension funds.

The number of institutional investors in infrastructure, such as roads, airports and rail, more than doubled since 2011, according to Preqin, an alternative investments research firm.

“There’s a lot of money swimming around the world that doesn’t know where to go,” said Dr. Alexander Metcalf, president of TEMS, Inc., a transportation consulting firm. “We’ve seen huge increases in institutional money that is willing to go into transportation.”

Longstanding U.S. skepticism of expensive train projects does not necessarily extend to foreign investors, Meadley said.

“People outside of this country believe this will happen more than Americans believe this will happen,” she said.

POLITICAL PERILS

The U.S. is decades behind Europe and Asia in building fast trains.

In the early 1990s, French and German companies made plays to construct a high-speed network across Texas. But the project relied in part on taxpayer money, and the proposal collapsed when local political support waned.

Texas train officials now see private financing as the faster, cheaper – and only – avenue. If their project relied on public subsidies, “we’d end up pulling the plug,” said Robert Eckels, a director at Texas Central.

Project officials say they have avoided U.S. federal funding in part because it includes a requirement that American workers manufacture the trains – even though no such U.S. factory currently exists.

Since 2009, the government has spent $10 billion to improve passenger rail service in the U.S. California was the only recipient constructing a high-speed rail line, and the money will only go so far. The state will likely need private money to finance much of the project’s estimated $64 million cost.

State rail officials overseeing the California project, considered the most ambitious planned in the U.S. and the farthest along, say there’s growing interest from foreign governments and international firms to finance the second leg to Los Angeles.

In February, the state announced the opening of the train’s first leg, a 250-mile line from the rural Central Valley to Silicon Valley, would be pushed back by three years to 2025.

The progress has been measured in decades rather than years. California Governor Jerry Brown first signed legislation to study high-speed rail during a previous tenure in office – in 1982.

“Everything big runs into opposition,” Brown said at the rail line’s groundbreaking in January 2015.

(Additional reporting by Brenda Goh in Shanghai and Tim Kelly in Tokyo; Editing by Brian Thevenot)

EU proposes scheme to share out asylum seekers

Migrants line up to receive personal hygiene goods distributed by the United Nations High Commissioner for Refugees (UNHCR), outside the main building of the disused Hellenikon airport

By Gabriela Baczynska

BRUSSELS (Reuters) – The European Commission proposed a system to distribute asylum seekers across the EU on Wednesday that aims to ease the load on states like Greece and Italy but drew immediate condemnation from governments in Eastern Europe.

The European Union executive published legislative proposals to reform the so-called Dublin system of EU asylum rules that includes a “fairness mechanism” under which each of the 28 states would be assigned a percentage quota of all asylum seekers in the bloc that it would be expected to handle.

The quotas would reflect national population and wealth and, if a country found itself handling 50 percent more than its due share, it could relocate people elsewhere in the bloc. States could refuse to take people for a year — but only if they paid another country 250,000 euros per person to accommodate them.

“There is no a la carte solidarity in this Union,” First Vice President Frans Timmermans told reporters. “This is a way to be able to show solidarity in a situation where … you are not able to take the refugees which were allocated to you.”

But at a meeting in Prague, ministers from Poland, Hungary and the Czech Republic all repeated their opposition to the idea of relocation: “It makes no sense, it violates EU member states’ rights,” Polish Interior Minister Mariusz Blaszczak told reporters. Hungary’s foreign minister called it “blackmail”.

A two-year emergency relocation scheme was set up last year as Greece struggled to cope with the chaotic arrival of nearly a million people, many of them Syrian refugees, most of whom reached Germany. It was agreed over the furious objections of several central and eastern states, two of whom, Hungary and Slovakia, are contesting the quota system in the EU courts.

In fact, only 1,441 asylum seekers have been relocated out of the 160,000 allowed for under the current temporary scheme.

The proposals, which also include measures to speed up the process of handling asylum claims and tighter controls on the movements of migrants themselves, need backing from governments and the European Parliament — a process that officials expect to be an uphill battle and involve many amendments.

Germany, the bloc’s main paymaster and destination for the bulk of migrants crossing the Mediterranean, has pushed hard for a permanent relocation system and has voiced frustration with the refusal of governments in the east who benefit the most from EU subsidies to take in asylum seekers.

Poland, Hungary and other formerly communist states say immigration, especially from the Muslim cultures of the Middle East, would disrupt their homogeneous societies. Governments also object to paying as an alternative to taking people in.

A similar proposal last year to set a payment of 0.002 percent of GDP was not taken up in the temporary scheme. The Commission did not issue its quota figures. Last year’s tables gave Germany a roughly 18 percent share, France 14 percent, Poland 5.6 percent and Hungary 1.8 percent.

“CONTROVERSIAL”

Any reform of the system, from which Britain, Ireland and Denmark are exempt, will require majority approval by EU governments. But senior officials say EU leaders will try to avoid forcing a deal through over strong minority objections, as happened with the temporary relocation scheme last September.

Even the authors of the proposal admit it is “sensitive” and “controversial” but hope it bridges diverging expectations from member states, EU sources said.

Splits between east and west, north and south over migration have posed one of the biggest challenges the European Union has faced and leaders’ main hope is that a new deal with Turkey to hold down the numbers arriving can take the heat out of a debate that has seen nationalist parties surge in polls across Europe.

Italy has led a push for reform of a Dublin system that gives responsibility for handling asylum claims to the first country migrants arrive in. The Commission last month floated a possibility of scrapping that in favor of a central EU system but has now favored the relocation system.

Chaotic movements of migrants, including many allowed by Italy and Greece to head north without being registered, have thrown the bloc’s cherished Schengen system of open borders into disarray, with governments putting up new barriers to travel.

EU officials hope that the deal with Turkey, from where the bulk of 1.3 million people reached Europe last year, will stem the flow and allow the Union to regain control of its external borders and hence restore order in the Schengen area.

Also on Wednesday, Brussels was expected to confirm a lifting of visa restrictions on Turks as part of the deal with Ankara. The EU is offering to take in refugees directly from Turkey, which hosts 2.7 million Syrians, and such resettlements would be taken into account in countries’ quotas for relocation.

(Editing by Alastair Macdonald)

Iran, France concerned with Syria violence

Residents inspect damages after an airstrike on the rebel held al-Maysar neighborhood in Aleppo

By Tom Perry, John Irish and Bozorgmehr Sharafedin

BEIRUT/PARIS/DUBAI (Reuters) – France and Iran voiced concern over escalating violence in Syria on Tuesday, echoing warnings from the United States and Russia as fighting near the city of Aleppo put more pressure on a fragile truce agreement.

The already widely violated “cessation of hostilities” agreement brokered by Russia and the United States has been strained to breaking point by an upsurge in fighting between Syrian government forces and rebels near Aleppo.

The escalation underlines the already bleak outlook for peace talks set to reconvene this week in Geneva. The United Nations says the talks will resume on Wednesday. The government delegation has said it is ready to join the talks from Friday.

With President Bashar al-Assad buoyed by Russian and Iranian military support, the Damascus government is due to hold parliamentary elections on Wednesday, a vote seen by Assad’s opponents as illegitimate and provocative.

Iran said an increase in ceasefire violations could harm the political process a day after Russia said it had asked the United States to stop a mobilization of militants near Aleppo, Syria’s biggest city until the conflict erupted in 2011.

Iranian Deputy Foreign Minister Hossein Amir-Abdollahian, speaking after a meeting with U.N. Special Envoy Staffan de Mistura in Tehran, blamed the “increasing activities of armed groups” for the violations.

France, which backs the opposition, also expressed concern, but blamed the other side. “It warns that the impact of the regime and its allies’ offensives around Aleppo and Eastern Ghouta are a threat to the cessation of hostilities,” government spokesman Romain Nadal said. The Eastern Ghouta is an opposition-held area near Damascus.

Syria’s civil war has killed more than 250,000 people, created the world’s worst refugee crisis, allowed for the rise of Islamic State and drawn in regional and international powers. The intervention of Russia swung the war in Assad’s favor.

WASHINGTON “VERY, VERY CONCERNED”

The United States, which also backs rebels fighting Assad, on Monday said it was “very, very concerned” about increased violence and blamed the Syrian government for the vast majority of truce violations.

Both the government and a large number of rebel groups had pledged to respect the cessation of hostilities agreed in February with the aim of allowing a resumption of diplomacy towards ending the five-year-long war. Jihadist groups including the Nusra Front and Islamic State were not part of the deal.

A senior official close to the Syrian government said the truce had effectively collapsed.

“On the ground the truce does not exist,” said the official, who is not Syrian and declined to be named because he was giving a personal assessment. “The level of tension in Syria will increase in the coming months.”

The eruption of fighting on the front lines south of Aleppo marks the most serious challenge yet to the truce.

The Syrian Observatory for Human Rights, a British-based organization that tracks the war, said dozens of government fighters had been killed in a big offensive to take the town of Telat al-Eis near the Aleppo-Damascus highway on Tuesday.

A rebel fighting in the area said the assault launched at dawn was backed by Russian air strikes and Iranian militias, adding that the attackers had suffered heavy losses. The Syrian military could not be reached for comment.

Iranian Revolutionary Guards and Lebanon’s Hezbollah have both deployed in the southern Aleppo area in support of the government, while the Nusra Front is also fighting in close proximity to other rebels.

The Syrian prime minister was quoted on Sunday as saying government forces were preparing a major operation in the region with Russian support.

Further south in Homs province, Russia said one of its attack helicopters had crashed in the early hours of Tuesday, killing both pilots. It said the helicopter had not been shot down and the cause of the crash was being investigated.

“PROVOCATIVE” ELECTION

De Mistura, speaking in Tehran, said he and Amir-Abdollahian had agreed on the importance of the cessation continuing, that aid should reach every Syrian and that “a political process leading to a political transition is now crucially urgent”.

De Mistura, whose two predecessors quit, has said he wants the next round of Geneva talks to be “quite concrete” in leading towards a political transition.

Ahead of the first round of talks, Damascus had ruled out any discussion of the presidency, calling it a red line.

A senior Iranian official on Saturday rejected what he described as a U.S. request for Tehran’s help to make Assad leave power, saying he should serve out his term and be allowed to run in a presidential election “as any Syrian”.

Some members of the main Syrian opposition alliance, the High Negotiations Committee (HNC), arrived in Geneva on Tuesday, and U.N. spokesman in Geneva Ahmad Fawzi said the talks were expected to begin on Wednesday.

De Mistura is working according to a U.N. Security Council resolution approved in December that sets out a political process including elections after the establishment of “credible” governance and the approval of a new constitution.

The Syrian government says it is holding Wednesday’s elections in line with the existing timetable that requires a vote every four years. Russia has said the vote does not go against the peace talks and is in line with the constitution.

French President Francois Hollande last month, however, said the idea was provocative and “totally unrealistic”.

(Additional reporting by Tom Miles in Geneva, and Samia Nakhoul and Laila Bassam; Writing by Tom Perry; Editing by Peter Millership and Giles Elgood)

U.S. frustration simmers over Belgium’s struggle with militant threat

By Mark Hosenball

WASHINGTON (Reuters) – Shortly after last November’s attacks on Paris by a Brussels-based Islamic State cell, a top U.S. counter-terrorism official traveling in Europe wanted to visit Brussels to learn more about the investigation.

When the official tried to arrange meetings, however, his Belgian counterparts were not welcoming, according to U.S. officials familiar with the events. The Belgians indicated it was a bad time to speak to foreign officials as they were too busy with the investigation, said the officials, who asked not to be identified.

Belgian officials declined to comment on the incident.

The brush-off was one small sign of mounting U.S. frustration over Brussels’ handling of its worsening Islamic militant threat.

Concern that the small European nation’s security and intelligence officials are overwhelmed — and that its coordination with allies falls short — have again come to the fore following the Islamic State-claimed attacks on Tuesday that killed at least 31 people.

Several U.S. officials say that security cooperation has been hampered by patchy intelligence–sharing by Brussels and wide differences in the willingness of different agencies to work with foreign countries, even close allies.

One U.S. government source said that when American investigators try to contact Belgian agencies for information, they often struggle to find which agency or part of an agency might have relevant information.

Belgium has ordered a sharp increase in security budgets following the Paris attacks, despite being under steady pressure to limit its debt levels under euro zone rules. The government has promised to recruit around 2,500 more federal police, who pursue major crimes, to make up for a shortfall of close to a fifth of the full-strength force of 12,500.

It also says it thwarted a major attack in January 2015, and is eager to cooperate with European and U.S. counterparts.

“These attacks show that more coordination with the United States is clearly desirable,” Guy Rapaille, the president of the committee that provides oversight of Belgium’s security and intelligence services, told Belgium’s state broadcaster RTBF.

“But you have to remember that big powers guard their intelligence very closely.”

U.S. officials acknowledge the recent Belgian efforts to step up funding and recruitment.

Yet they say Belgian security services are outmatched by the threat in a country that, per capita, has supplied the highest number of foreign fighters to Syria of any European nation.

“They’re way behind the ball and they’re paying a terrible price,” Rep. Adam Schiff, ranking Democrat on the House Intelligence Committee, told Reuters.

Asked on Wednesday whether Belgium was too complacent over the threat posed by Islamic militancy, State Department spokesman Mark Toner said:

“I want to stay clear of saying that Belgium was somehow caught by surprise or not aware. You know, we collaborate, we work with Belgium closely.”

Some U.S. counter-terrorism officials say much of the gap between Washington and Belgium — and some other European countries — is cultural. Europeans’ deeper commitment to personal privacy sometimes prevents or delays sharing of information such as travel data — that is taken for granted in the United States.

After the September 11, 2001 attacks, the U.S. government radically reshaped its counter-terrorism agencies. It broke down walls between law enforcement and intelligence authorities, and created new coordinating institutions such as the Director of National Intelligence and National Counterterrorism Center.

Belgium, by contrast, is a patchwork country divided between French and Dutch speakers and with multiple levels of government.

Belgian security chiefs have repeatedly complained that they cannot handle up to 900 home-grown Islamist militants, among the highest per-capita rates in Europe. Belgium does not divulge the exact number of personnel in its security services and military intelligence, but security experts say they appear under-resourced compared to European counterparts.

“Add to that the problem of two languages (French and Flemish), lack of Arabic speakers, and weak coordination between national and local government, you have a huge discrepancy between threat and response,” said former CIA official and White House advisor Bruce Riedel, now at the Brookings Institution.

(Additional reporting by David Brunnstrom and Jonathan Landay in Washington, Robin Emmott and Alastair Macdonald in Brussels; Writing by Warren Strobel; editing by Don Durfee and Stuart Grudgings)

Captured Paris attacks suspect ‘worth weight in gold’ to police, lawyer says

BRUSSELS (Reuters) – The only suspected participant in Nov. 13 Paris attacks to be captured alive has been cooperating with police investigators and is “worth his weight in gold”, his lawyer said on Monday.

Belgium’s Interior Minister Jan Jambon said the country was on high alert for a possible revenge attack following the capture of 26-year-old Salah Abdeslam in a flat in Brussels on Friday.

“We know that stopping one cell can …push others into action. We are aware of it in this case,” he told public radio.

French investigator Francois Molins told a news conference in Paris on Saturday Abdeslam had admitted to investigators he had wanted to blow himself up along with others at the Stade de France on the night of the attack claimed by Islamic State; but he later backed out.

Abdeslam’s lawyer Sven Mary said he would sue Molins for making the comment public, calling it a violation of judicial confidentiality.

Mary said Abdeslam was now fully cooperating with investigators.

“I think that Salah Abdeslam is of prime importance for this investigation. I would even say he is worth his weight in gold. He is collaborating. He is communicating. He is not maintaining his right to remain silent,” Mary told Belgian public broadcaster RTBF.

MORE OPERATIONS PLANNED?

As the only suspected participant or planner of the Paris attack in police custody, Abdeslam would be seen by investigators as a possible major source of information on others involved, in support networks, finance and links with Islamic State in Syria. There would also be urgent interest in finding out what further attacks might be planned.

Belgian prosecutors said in a statement they were looking for Najim Laachraoui, 25, using the false name of Soufiane Kayal. His DNA had been found in houses in Belgium used by the Paris attackers.

Belgian Foreign Minister Didier Reynders said on Sunday that Abdeslam may have been plotting more operations drawing on a weapons discovered in the Forest district of Brussels and a network of associates.

Jambon said he could not confirm that, but it was a possibility.

“After 18 months of dealing with this terrorist issue, I have learned that when the terrorists and weapons are in the same place, and that’s what we saw in Forest, we are close to an attack. I’m not saying it is evidence. But yes, there are indications,” he said.

Reynders said Belgium and France had so far found around 30 people involved in the gun and bomb attacks on bars, a sports stadium and a concert hall in the French capital.

(Reporting By Jan Strupczewski and Barbara Lewis; editing by Ralph Boulton)