Delhi gang-rape case in court

THE case of five men accused of the gang-rape and murder of a student on a New Delhi bus was set to be transferred to a fast-track trial court, as her boyfriend recounted for the first time his efforts to save her.

The horrifying crime has appalled India and brought simmering anger over widespread crime against women to the boil amid demands for safer streets, more sensitive policing and a change in social attitudes.

Police arrested six suspects soon after the attack and formally charged five of them in court on Thursday with murder, rape and kidnap. One of them claims to be a juvenile aged 17, who is undergoing a bone test to check his age.

A district court was due to hold its second hearing on Saturday and is expected to transfer the case of the five men to a special "fast-track" court set up amid a public outcry and demands for the culprits to be hanged.

Adding to the anger and soul-searching underway in India was the first description of events from the boyfriend of the 23-year-old physiotherapy student, who was with her when they were attacked.

"The cruelty I saw should not be seen ever," the 28-year-old man, who cannot be named for legal reasons, told AFP of the savagery of the assault, which left the woman with such serious internal injuries that she died last weekend.

"I tried to fight against the men but later I begged them again and again to leave her," he said from his family's home in rural northern India where he is taking time out from his job at a software firm in the capital.

The 28-year-old recounted bitterly how passers-by had failed to come to their rescue after they were thrown out of the moving vehicle without clothes after their ordeal.

He also criticised police for failing to be sensitive to their mental condition after the attack, and raised questions about the emergency care given in the public hospital which admitted his girlfriend.

"A passerby found us (after the attack), but he did not even give my friend his jacket. We waited for the police to come and save us," he told AFP.

Later Friday, he appeared for the first time in public since the attack, giving an anguished interview to Hindi-language Indian cable channel Zee News, in which he again criticised police and onlookers for failing to help.

"They could have taken us to hospital, given us clothes in that crucial one and half hours. For a dying person every minute is important," he told the channel, adding that police had taken 45 minutes to reach the scene.

Police told AFP on Saturday they had filed a case against the channel because the interview - which showed the boyfriend in full view - had illegally disclosed the identity of a rape victim.

The Committee for the Protection of Journalists criticised the move in a statement.

The man, who said he was "in love" with the victim but declined to comment on statements from friends that they were to marry, told AFP how events had quickly spiralled out of control on the bus.

The couple had been to see the film Life of Pi at an upmarket shopping mall and were finding it difficult to flag down a rickshaw afterwards.

"I was not very confident about getting into the bus but my friend was running late, so we got into it. This was the biggest mistake I made and after that everything went out of control," he said.

The boyfriend told how the driver and his accomplices allegedly made lewd remarks before stopping the vehicle and locking the doors.

"They hit me with a small stick and dragged my friend to a seat near the driver's cabin," he said.

After that the "driver and the other men raped my friend and hit her in the worst possible ways in the most private parts of her body".

"I cannot tell you what I feel when I think of it. I shiver in pain," he said, adding that police had eventually arrived but were dismissive of their mental condition.

"I was treated like an object by the police... They wanted all the help to solve the case even before getting me the right treatment," he said.

He added that he was "not satisfied" at the treatment his girlfriend was given at the government-run Safdarjung Hospital.

"Anywhere in the world the prognosis was not very good to start with," Yatin Mehta, a highly experienced critical care specialist at the private Medanta hospital, who helped with her treatment, told AFP.

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Vic fire fighters set for Tassie

A CONTINGENT of 65 Victorians is preparing to head to Tasmania to help battle the bushfires.

Victorian Fire Services Commissioner Craig Lapsley said planning is under way to send the crews to assist as parts of Tasmania's east coast have been cut off by bushfires.

"We will send crews that will leave Sunday evening to work Monday, Tuesday, Wednesday and Thursday," Mr Lapsley told AAP.

"They'll be crews that are both incident management teams, aircraft positions, so those that will manage and fly, and crews on the trucks."

The blaze on the Tasman Peninsula, east of Hobart, continues to burn out of control.

It has claimed least 80 properties and left thousands of people isolated on Friday night, spurred on by record high temperatures.

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Tas alert on Forcett fire downgraded

THE major fire at Bicheno in Tasmania's east has been downgraded and the Tasman Highway has been reopened.

The Tasmania Fire Service (TFS) has issued an "advice" alert level for the fire, which was earlier classified at an emergency warning level.

The TFS says the fire danger rating in the area is low to moderate, and there is no immediate threat to communities.

The Tasman Highway has been re-opened and motorists are being urged to be cautious due to possible smoke and emergency services vehicles in the area.

The fire is still not under control and authorities say people may experience embers, smoke and ash falling on Coles Bay Road, south of Apsley River, and the Tasman Highway, south of Bicheno.

Back burning off the Cole Bay Road will continue through the night and residents are advised that they should not be alarmed if there is more smoke in this area.

Earlier, the fire at Forcett, east of Hobart, was downgraded to a watch and act level as cooler weather spread across the island state.

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Pet Perth pooch leads cops to drugs, gun

A frightened pet dog has led concerned police officers to a drug stash and an illegal shotgun. Source: AAP

THE owners of a timid dog may be wondering if the canine is their best friend after it led police to their drug stash.

Officers noticed the fierce-looking, but scared, mastiff cross in their car park on Friday.

When they approached the dog, it ran into traffic.

Concerned, the police followed the mutt down a laneway opposite the station.

The dog went to a unit in Hinderwell Street, where police say they found drugs and cash on a table.

An unlicensed shotgun and ammunition were allegedly found in a car on the premises and other drugs were found in the house.

A 31-year-old man from Queens Park will appear in Perth Magistrates Court on January 10 charged with possessing an unlicensed firearm and ammunition.

A 45-year-old Beverley woman is expected to be charged with possession of amphetamines and possession of a smoking implement.

A 32-year-old Scarborough man is expected to be charged with allowing the home to be used for drug taking and for possessing a prohibited drug.

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Hong Kong stocks end 0.29% lower

HONG Kong shares have ended 0.29 per cent lower after a rally in the previous two sessions was capped by concerns the US Federal Reserve will end its monetary easing scheme earlier than expected.

The benchmark Hang Seng Index shed 67.51 points to 23,331.09 at Friday's close on turnover of HK$77.49 billion ($10.0 billion).

However, the slight dip after rising 3.3 per cent over Wednesday and Thursday was just "a healthy technical correction", said KGI Asia chief operating officer Ben Kwong.

"The two drivers for the Hong Kong market's uptrend - the China recovery story and abundant liquidity - remain intact," he told Dow Jones Newswires.

While fiscal cliff woes have been put off, minutes from the Fed's December meeting show a growing bias towards some policy tightening this year, with some members looking to end its asset purchases during 2013 and others by the end of the year.

The Fed in September unveiled its third bond-buying scheme - called quantitative easing (QE3) - to boost growth, saying it would not stop until the economy was up on its feet. And in December it added to that scheme.

Banking giant HSBC fell 1.56 per cent to HK$82.00, China Mobile slipped 0.87 per cent to HK$90.65 and Haitong Securities fell 3.3 per cent to HK$12.96.

Mainland developer Hopson rose 10.5 per cent to HK$16.06 and bourse operator Hongkong Exchanges also outperformed, closing 2.0 per cent higher at HK$142.60.

Chinese shares closed up 0.35 per cent on their first day of trade for the year, following a near three per cent rise in the previous two sessions.

The benchmark Shanghai Composite Index added 7.86 points to 2,276.99 on turnover of 114.6 billion yuan $US18.4 billion ($A17.66 billion).

The index gained 1.96 per cent in this week's two trading sessions - the market was closed from Tuesday for a three-day New Year holiday.

Analysts said sentiment was boosted by hopes for a rebound in the domestic economy after an improvement in manufacturing activity, but investors also expect Beijing to unveil pro-growth policies next month.

Steel makers gained after an industry group said manufacturing activity and new orders in the sector recovered in December.

Luyin Investment Group surged by its 10 per cent daily limit to 5.70 yuan while Fangda Special Steel Technology jumped 7.71 per cent to 4.19 yuan.

Construction companies ended higher. China Railway Construction gained 8.69 per cent to 6.38 yuan while China Railway Group rose 5.92 per cent to 3.22 yuan.

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China fines LG, Samsung, 4 others

CHINESE regulators have fined South Korean companies LG and Samsung and four Taiwanese companies on charges they fixed prices of flat panel screens sold to Chinese manufacturers.

The government announced on Friday that LG, Samsung and the Taiwanese companies were ordered to repay a total of 172 million yuan ($A25.91 million) to Chinese customers.

In addition, the companies were fined a total of 144 million yuan.

The Chinese Cabinet's economic planning agency said investigators found representatives of the six companies met dozens of times in 2001-06 to agree on prices to charge for flat-panel screens.

It said that improperly raised costs for Chinese manufacturers.

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Death report as Tas bushfire razes homes

TASMANIAN police say they are not able to confirm reports of a death in a huge bushfire in the state's south that has already destroyed homes, a school and an RSL club.

They say up to 65 buildings could have been damaged or destroyed in the small community of Dunalley, 56km southeast of Hobart.

They include the local school, RSL club, service station and houses, ABC television reported.

Around 15 houses at nearby Boomer Bay could also have been lost as the impact of catastrophic fire conditions in southern Tasmania begins to emerge.

Tasmania Police commissioner Scott Tilyard said no death had been confirmed.

"It really has the status of a rumour at this stage," he told the ABC.

But as a police boat was being sent to rescue people taking refuge on the waterfront at the top of the Tasman Peninsula, damage to property was becoming clearer.

"Reports are of anything up to about 65 buildings may have been impacted by the fire and that is the area where there has been an unconfirmed report that possibly there might have been one life lost," Mr Tilyard said.

Around 50 people were awaiting the arrival of the police vessel to help them evacuate but were safe, he said.

Huge plumes of smoke were visible from Hobart on Friday as the island capital sweltered through its hottest day on record.

Accompanying winds whipped up the two largest blazes that had started on Thursday; at Forcett, near Dunalley, and Lake Repulse near Mt Field National Park northwest of Hobart.

Tasmania Fire Service (TFS) Chief Officer Mike Brown said conditions on Friday had reached the catastrophic level in the rating system developed after the Black Saturday fires in Victoria.

"We reached catastrophic fire danger ratings at times during this afternoon," Chief Officer Brown told reporters.

"I don't think we're quite out of the woods yet.

On a day Hobart hit a top temperature of 41.8C - smashing the previous record of 40.8 set in 1976 - up to 40 fires were burning around the state.

The TFS used its emergency phone warning system to ask residents to leave the affected areas and police said around 80 per cent had chosen to go.

Near Dunalley, the TFS said it was too late to leave the communities of Connellys Marsh or Primrose Sands.

Those at Connellys Marsh were being advised the nearby beach was a safer option for them.

Carlton River Road was considered impassable and Primrose Sands residents were also being told to head to the nearby beach.

The popular Port Arthur tourist area was cut off after police closed the Arthur Highway, isolating the Tasman Peninsula.

The second major fire, which authorities suspect was started by a campfire, is affecting communities including Broad River, Jones River and Ellendale.

Late on Friday afternoon, the TFS upgraded a warning for another fire near Bicheno in that area.

Campers were being evacuated and residents were being encouraged to act on their bushfire plans or leave.

A large grass fire at Epping Forest in the state's north was also causing concern.

A mild southerly change was due in Hobart around midnight after conditions considered worse than 2006/7 when houses were lost on the state's east coast.

The change is unlikely to bring rain but could ignite more fires with lightning strikes, the Bureau of Meteorology said.

"Lighter winds tomorrow and milder temperatures and higher relative humidities will be of help," senior forecaster Malcolm Downing told AAP on Friday.

Hobart hit 41.8C at 4.05pm (AEDT), its highest temperature since record keeping started in 1883.

Authorities say smoke is likely to be visible for several hours and people sensitive to it should stay indoors.

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Nikkei up 2.82% on first trading day

TOKYO stocks have closed up 2.82 per cent on the first trading day of 2013, as the yen tumbles on relief over a US deal to avert the "fiscal cliff" of tax hikes and huge spending cuts.

The Nikkei 225 index on the Tokyo Stock Exchange, which ended 2012 at its highest level since the March 2011 quake and tsunami disaster, added 292.93 points on Friday to 10,688.11.

The Topix index of all first-section issues gained 3.34 per cent or 28.71 points to 888.51.

"Japan's markets are opening relatively late after the US government acted, and thus they stand to benefit from the news as well as the enthusiastic response from other bourses," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.

Global markets rallied after the US House of Representatives late on Tuesday passed a deal between the White House and Republicans to raise taxes on the rich and put off automatic $US109 billion ($A104.61 billion) budget cuts for two months.

The deal lifted the clouds of immediate crisis, sending the yen to its lowest level since July 2010 against the dollar.

The dollar rose to 87.73 yen in Tokyo afternoon trade, up from 87.19 yen in New York on Thursday afternoon. The euro was at 114.35 yen and $1.3034 from 113.80 yen and $1.3052.

The market is watching the next moves by Congress and President Barack Obama.

CLSA equity strategist Nicholas Smith said: "Thereafter (the) focus will be on who Prime Minister (Shinzo) Abe wants to recommend as the new Bank of Japan governor."

Abe, who took office in December, has pressured the central bank to take aggressive easing steps to help drag Japan out of years of deflation and weak growth.

It has spawned speculation he will want someone willing to agree to his inflation target to replace current governor Masaaki Shirakawa, whose five-year tenure ends on April 8.

An equity trading director at a foreign brokerage said: "Players await US jobs figures tonight. There is currently no reason to sell the market, and a good jobs report will fuel more buying."

Friday was also the first trading day for Japan Exchange Group, which brought together The Tokyo Stock Exchange and Osaka Securities Exchange.

"We will aim for Asia's number one exchange that is selected by investors from around the world," the group's chief executive Atsushi Saito said at a ceremony at the Tokyo bourse.

Exporters were higher, with Toyota Motor up 6.36 per cent at 4,260 yen and Nikon up 5.14 per cent at 2,656 yen.

Among financials Nomura Holdings climbed 4.17 per cent to 524 yen and Sumitomo Mitsui Financial Group rose 3.53 per cent to 3,225 yen.

Embattled electronics firm Sharp fell 2.64 per cent to 295 yen after a report during the New Year break it was considering making a public share offering worth more than Y100 billion ($A1.10 billion) this year.

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European stocks steady after bumper gains

EUROPEAN stock markets have steadied, with dealers digesting the previous day's huge gains after US lawmakers agreed a deal to avert the so-called fiscal cliff.

In opening Thursday trade, London's FTSE 100 index of top companies edged 0.01 per cent higher to 6,028.22 points, while Frankfurt's DAX 30 index dropped 0.21 per cent to 7,762.13 points and the Paris CAC 40 shed 0.21 per cent to 3,725.92.

Global stocks began 2013 with a bang on Wednesday after Washington sealed a last-minute deal to avoid the "fiscal cliff" of huge tax rises and spending cuts which would have pushed the United States back into recession, economists said.

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Macmahon get 2nd bid for construction unit

MACMAHON Holdings has received a second bid for its construction business after Indian-based Punj Lloyd Ltd said it was keen to better an agreed deal with Leighton Holdings.

Punj Lloyd said in a statement after the Australian market closed on Thursday its wholly-owned Sembawang Australia subsidiary had made an offer to buy Macmahon's construction operations for $25 million.

Sembawang president and chief executive Richard Grosvenor said the two companies were a strategic fit.

"Sembawang has always been eyeing Macmahon's construction business for over four years now and believe that the time is right to make this offer," Mr Grosvenor said in the statement.

Sembawang said the offer was the subject of satisfactory due diligence and board approval.

Punj Lloyd, an engineering and construction group, was listed on the national and Bombay stock exchange.

Macmahon said in December it would sell its construction activities to Leighton Holdings for $20 million and become a dedicated full service mining contractor.

Leighton owns about 24 per cent of Macmahon and is the company's largest shareholder.

While the effective date of the sale was December 31, 2012, the transaction required shareholder approval, with a vote due to be held at a Macmahon extraordinary general meeting scheduled for February.

Macmahon and Leighton did not respond to requests for comment.

Macmahon closed Thursday's local session up three cents, or 11.76 per cent, at 28.5 cents, while Leighton gained 47 cents, or 2.59 per cent, to $18.65.

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Putin grants Depardieu citizenship

Gerard Depardieu plans to renounce his citizenship over France's wealth tax. Source: AP

PRESIDENT Vladimir Putin has signed a decree granting Russian citizenship to French movie star Gerard Depardieu, who has threatened to give up his French passport to protest a proposed tax hike on the rich.

"Vladimir Putin has signed a decree granting Russian citizenship to France's Gerard Depardieu," the Kremlin said in a statement on Thursday.

Depardieu said on Sunday a decision by France's highest court to strike down a 75 per cent tax rate on millionaires would change nothing in his highly publicised decision to move out of France.

The government has vowed to push ahead with the tax rate, which would apply to incomes over a million euros ($A1.24 million)) a year, and propose a new measure that would conform with the constitution.

Putin at his end-of-year press conference said he was ready to offer Depardieu - whom he called a businessman and a friend - a Russian passport to resolve his tax row.

"If Gerard really wants to have a residency permit in Russia or a Russian passport, we can consider this issue resolved positively," Putin said on December 20.

Depardieu had previously mentioned moving to Belgium, although he is a frequent guest of Moscow cinema festivals and other Russian celebrity events.

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Lawyers broaden soy milk class action

HUNDREDS of Australians who fell ill after drinking soy milk containing dangerous levels of iodine have widened their class action to include two Japanese companies.

Bonsoy soy milk was removed from supermarket shelves in late 2009 after 10 people, including a newborn baby, suffered thyroid problems in NSW.

Tests at the time revealed a cup of the milk contained seven times the recommended daily intake of iodine.

Since then, about 600 people have joined a Victorian Supreme Court class action against Spiral Foods, the product's Australian distributor.

An amended statement of claim was lodged in the court last month to include the milk's Japanese manufacturer, Marusan, and exporter, Muso.

Maurice Blackburn senior associate Irina Lubomirska said the two companies had ignored warnings about the milk's iodine content.

"We say that these three companies had test results in mid-2006 which showed that Bonsoy contained extremely high levels of iodine, but they did nothing," Ms Lubomirska said.

"On at least three occasions they were contacted by customers expressing concerns about iodine content of Bonsoy and they did not act to ensure the product was safe."

The matter will return before the court for directions on March 13.

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Missing woman left hospital with nothing

NSW police are searching for a 40-year-old woman who disappeared from a Sydney hospital on Sunday. Source: AAP

A SYDNEY businesswoman and mother of two who left a Sydney hospital with no shoes, phone or money has sparked a search by friends and family who are desperate to find her.

Belinda Burcham, nee Sheehan, walked out of St Vincent's Hospital in Darlinghurst on Sunday morning and hasn't been seen since.

"She's vulnerable," step-father Paul Talbert told AAP.

"She's out there with someone, hopefully, or she's gone to their home.

"But who would be keeping her and not notifying someone at least that she was okay or not okay."

The 40-year-old Double Bay resident left hospital without medical clearance prompting a search by police from Kings Cross and Rose Bay local area commands.

"She's looked like she's walked out of there purposely going somewhere and hopefully that is the case," Mr Talbert said.

"When she left the hospital she had nothing. No ID, no phone, no money, no shoes."

Known as "Bin" to her family, she has two children aged three and four.

The entrepreneur and business owner has had careers in pharmaceutical sales and marketing and her friends include Moses Obeid and other well-known business identities.

Many of them continue to comb the Darlinghurst area and surrounding suburbs, showing her photo to anyone who may have seen her.

Her brother works for Telstra and has gotten the word out through his networks while her sister Justine Pye has launched an appeal on Facebook.

"Please, please share Belinda's photo," Ms Pye said in her posting.

Police told AAP the search continues for Ms Burcham and they hold serious concerns for her safety.

Her mother Elaine Talbert was too distraught to speak about her daughter's disappearance.

"We are devastated and hoping she will come back to us," Ms Talbert told AAP via email.

Anyone with information about Ms Burcham is urged to contact Crime Stoppers on 1800 333 000.

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India manufacturing at six-month high

INDIA'S manufacturing activity rose in December to its fastest pace in six months, led by strong factory output and a rise in new orders.

The Purchasing Managers' Index (PMI) from HSBC, which gives a snapshot of manufacturing health from output to jobs, climbed to 54.7 in December, compared to 53.7 in the previous month.

A figure of over 50 indicates growth in the sector while below 50 points shows contraction.

"Activity in the manufacturing sector picked up again, led by faster output growth and a further uptick in new orders, which led to a faster increase in backlogs of work," said HSBC chief economist Leif Eskesen on Wednesday.

Economist Sonal Varma at Nomura Securities said the PMI data was a good sign for the economy.

"The manufacturing sector after stabilising between July and October began to improve from November and inflation pressures remain under check," she said.

The survey's findings - based on data from more than 500 manufacturers - come after India's economic growth fell to 5.3 per cent in the July-September quarter, extending a slowdown since the start of the year.

The government has forecast growth of 5.7 to 5.9 per cent for the fiscal year to March, which is far below the near double-digit pace India set before the onset of the global financial crisis.

India's inflation cooled to a 10-month low of 7.24 per cent in November, which is still well above the central bank's comfort zone of near five per cent, and Eskesen said pressures were likely to remain.

The Indian central bank, which has kept its benchmark interest rates on hold since April due to fears about inflation, has suggested it may start easing monetary policy in the current financial quarter to March.

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Indian lawyers shun rape accused

LAWYERS in India say they will refuse to defend the men accused of a fatal gang-rape that sparked protests across the country.

Hearings are expected to begin on Thursday at the Saket district court in south New Delhi, where police will formally present a 1000-page charge sheet against the six accused.

"We have decided that no lawyer will stand up to defend the rape accused as it would be immoral to defend the case," Sanjay Kumar, a lawyer and a member of the Saket District Bar Council, told AFP.

Kumar said the 2500 advocates registered at the court have decided to "stay away" to ensure "speedy justice", meaning the government would have to appoint lawyers for the defendants.

Another lawyer at the court confirmed the boycott to AFP.

Five men are expected to face charges including rape, murder and kidnapping in the Saket court, with the prosecutor likely to seek the death sentence.

A sixth suspect is believed to be 17 years old, meaning he would be tried in a court for juveniles.

The brutality and horrific nature of the attack on a 23-year-old has led to protests in the capital and elsewhere over the widespread abuse of women and sex crime in India.

The rape victim died at the weekend after 13-day struggle to survive injuries so grievous that part of her intestines had to be removed.

She was repeatedly raped on a bus on December 16 before being thrown from the moving vehicle at the end of a 40-minute ordeal.

In 2008, Indian lawyers refused to defend a gunman who took part in attacks on Mumbai which killed 166 people, leaving him with a government-appointed lawyer. He was executed in November last year.

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Sharp drop in N Korea refugees to South

THE number of North Korean refugees fleeing to the South fell sharply in 2012, officials in Seoul say, with activists citing crackdowns and tighter border controls.

A total of 1508 North Koreans arrived in the South in 2012 - nearly all of them via China - down from 2706 the previous year, the Unification Ministry said on Wednesday.

Activists said the North under new leader Kim Jong-Un had cracked down on people trying to flee the country.

Searches for North Koreans living in hiding in China have also been intensified in co-operation with Chinese security authorities, they said.

"Border guards are under an order from Kim Jong-Un to shoot to kill anyone who attempts to cross the (North Korea-China) border illegally," Pastor Kim Sung-Eun of the Caleb Mission told AFP.

The mission is one of several South Korean Christian evangelist groups which help North Koreans escape and resettle in the South.

Kim said the cost of getting someone out of North Korea had escalated in recent years to around 10 million won ($A9,000) - more than half of which is used to bribe border guards.

A total of 24,613 North Koreans have settled in the South since 1998, the Unification Ministry said, with around half of them unemployed or retirees struggling to make ends meet.

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Man charged over Hobart alleged rape

A MAN has been charged in connection with an alleged rape close to the centre of Hobart's New Year's Eve celebrations.

Police have interviewed and charged a 35-year-old man following a complaint from a 26-year-old woman about the alleged incident near Tasmania's Parliament House.

The parliament building sits opposite the Hobart waterfront, where an estimated 10,000 people flocked to see in 2013 on Monday night.

It is also close to the city's party precinct at Salamanca.

Detectives are requesting information from anyone who may have seen a woman in distress near the Parliament House car park between 1.30am and 3am (AEDT) on Tuesday morning.

The man was due to appear in court on Tuesday evening.

Police said Hobart was largely free of drunken incidents which have marred celebrations in previous years.

In the state's north, 12 people were arrested after police trying to break up a fight were pelted with stubbie bottles.

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US Senate approves deal on 'fiscal cliff'

US top political leaders have missed their deadline to avoid the so-called "fiscal cliff". Source: AAP

THE White House and top Republicans have struck a dramatic deal to avert huge New Year tax increases and postpone automatic spending cuts that had threatened to send the US economy into recession.

After months of agony over the crisis, weeks of debate about a possible solution and days of intense closed-door negotiations, members of the US Senate voted 89-8 early on Tuesday to pass a controversial bill that averts the "fiscal cliff".

It now goes to the House of Representatives, which could hold a vote on the measure later on New Year's Day.

If agreed by Congress, it would hand President Barack Obama a victory by increasing tax rates on households earning over $US450,000 ($A436,000) a year but exempt everyone else from a planned tax increase.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," Obama said in a statement after the vote.

The deal puts off $US109 billion in budget cuts across the government for two months, but in the process sets the stage for a new showdown between Obama's Democrats and Republicans in dysfunctional Washington at the end of February.

"There's more work to do to reduce our deficits, and I'm willing to do it," Obama said.

Vice-President Joe Biden, who negotiated the deal with top Senate Republican Mitch McConnell, trooped to Capitol Hill to sell it to Democratic senators, some of whom wanted tax increases to kick in at a lower threshold.

Had no deal been struck, experts warned that the fragile US economy could have been sent spinning back into recession by the $US500 billion combined whack from spending cuts and tax rises.

In the end, the deal was clinched a few hours before a midnight deadline. The Senate vote came just after 2.00am while the House was not due back into session until Tuesday.

Now it remains for Republican House Speaker John Boehner to rally his restive conservative coalition around the pact, which will likely need some Democratic votes in the House to pass.

For two decades, Republicans have fought any attempt to increase taxes so White House officials will see vindication in a deal that enshrines one of Obama's top pledges in his re-election campaign.

In a terse statement, Boehner said his chamber would pick up the legislation if it passed the Senate.

"Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members - and the American people - have been able to review the legislation," he said.

Democrats suggested that the deal, like many congressional bargains, was not perfect, but that it was preferable to the alternative.

"It's not that this proposal is regarded as great or is loved in any way, but it's a lot better than going over the cliff," New York Democratic Senator Chuck Schumer told reporters.

World sharemarkets, expected to be thrown into turmoil by a failure to beat the deadline, are closed on New Year's Day so members of Congress have a few extra hours of breathing room to get the deal concluded.

The deal means a return to Bill Clinton-era tax rates for top earners to 39.6 per cent, starting for couples who make $US450,000 a year and above.

Obama had originally campaigned for tax increases to kick in on household income of about $US250,000.

The president said earlier that the deal would extend tax credits for clean energy companies and also unemployment insurance for two million people that had been due to expire.

It also includes an end to a temporary two per cent cut to payroll taxes for Social Security retirement savings and changes to inheritance and investment taxes.

A source familiar with the deal said that the delay to spending cuts - known as the sequester - was financed by increased revenues and spending cuts from defence and non-defence spending.

Earlier, on a day of drama and brinkmanship, Obama had angered Republicans when he warned that he was not done with seeking higher taxes on the rich to pay down the US budget deficit.

"I know the president has fun heckling Congress. It's unfortunate he doesn't spend as much time solving problems as he does with campaigns and pep rallies," Tennessee Republican Senator Bob Corker said.

Signs that a deal could be close cheered investors as US markets rose before closing for the year. The Dow Jones Industrial Average closed up by 1.28 per cent at 13,104.14.

Relief seemed to course through the Senate during and after the vote, but both sides were already gearing up for the next legislative showdown, over the need to lift the government's statutory borrowing limit of $US16.4 trillion, reached on Monday.

The Treasury will take extraordinary measures to keep the government afloat for an undisclosed period until the ceiling is raised. Republicans are already demanding spending cuts in return.

That fight will now be doubled, with the deadline for the two-month sequester postponement set up by the fiscal cliff agreement.

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Man charged for shooting gun at NYE party

A MAN has been charged after shots were fired during a New Year's Eve party in NSW's Hunter Valley.

Police allege the 35-year-old threatened another man with a pistol and fired a number of shots into the air at a party at Stewarts Brook, near Muswellbrook, about 2.45am (AEDT) on Tuesday.

Other partygoers stepped in and calmed the man down, police said in a statement.

No one was injured in the incident and police have charged the man with a range of firearms offences.

He was refused bail and was due to appear in Muswellbrook Bail Court on Tuesday.

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Thousands march against Hong Kong leader

TENS of thousands of protesters have taken to the streets of Hong Kong, calling for its embattled leader to quit and demanding greater democracy 15 years after the former British territory returned to Chinese rule.

Organisers said they expected 50,000 people to join the New Year's Day march against Leung Chun-ying while pro-government groups staged separate and smaller rallies in support of the Beijing-backed chief executive.

Since taking office in July, Leung's popularity ratings have tumbled and he has faced a no-confidence vote in the legislature amid a row over illegal structures at his luxury home - a politically sensitive issue in the city.

"We have to keep voicing our concerns even though the situation is getting worse," 27-year-old university student Billy Li said as the demonstrators set off from a park to march to the government's harbourfront headquarters.

Holding up posters of Leung portrayed as a vampire and a wolf, the protesters - some waving flags from the British colonial era - chanted "Give us universal suffrage immediately" and "Step down, Leung Chun-ying".

Leung has acknowledged and apologised for the structures, which were built without planning permission and include a wooden trellis and a glass enclosure.

He became chief executive after his rival for the post, Henry Tang, was brought down by a row over illegal structures at his own home.

Demonstrators have used the scandal to press for universal suffrage in choosing the leader of Hong Kong, which was returned to Beijing in 1997 but maintains a semi-autonomous status with guarantees of civil liberties such the right to protest not seen on the mainland.

Leung was elected in March by a 1200-strong election committee packed by a pro-Beijing elite, amid rising anger among the city's seven million inhabitants over what many perceive to be China meddling in local affairs.

Beijing has said the city's chief executive could be directly elected in 2017 at the earliest, with the legislature following by 2020.

Thousands of Leung's supporters chanted "Support CY (Leung), support the government" at a separate rally earlier. Organisers claimed a turnout of 60,000 while police put the figure at about 8000.

In a bid to tackle discontent, Leung has banned mainland Chinese women from giving birth in Hong Kong in an attempt to secure residence rights for their children.

He has also introduced policies to prioritise housing for locals, a move which analysts say was a reaction to mainland buyers pushing up prices in one of the world's most expensive property markets.

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Thousands gather on Sydney harbour for NYE

Sydney's lord mayor says the city is spending $6.6 million on its New Year's Eve event. Source: AAP

THOUSANDS of revellers have gathered at Sydney's sparkling harbour to take part in the party that kicks off New Year's celebrations the world over.

Temporary cyclone fences surround the city's best vantage points as people armed with fold-up chairs, picnic blankets, nibbles and booze stake a claim.

Lucky types are bobbing on boats in the harbour while others are happy to simply line the sides of roads, with jubilant partygoers spilling from pubs onto the streets.

Sydney Lord Mayor Clover Moore says about 1.5 million spectators are expected to line Sydney Harbour to watch the fireworks.

Another two million Australians will catch the $6.6 million event on their teles, as will at least one billion people worldwide.

"This is really putting Australia on the map in terms of welcoming people to the New Year," Ms Moore said.

Pop princess Kylie Minogue, chosen as the event's creative ambassador, developed the theme 'Embrace' and chose its colour scheme and soundtrack.

She will be honoured with a musical-note firework which will be one of 100,000 individual pyrotechnic creations this year, including koala, octopus and hand images in lights.

Minogue said being home to host New Year's Eve was a dream come true.

"It's been a huge year for me and the finish line is tonight," she said, adding that her boyfriend was the first in line for a hug come midnight.

Minogue said her 25 years in the music industry hadn't been easy and had its ups and downs, but it had been "an amazing ride" overall.

Other celebs who have headed Down Under to ring in the New Year include Leonardo DiCaprio, Jamie Foxx and Jonah Hill.

They will be joined at The Star casino's Marquee Nightclub by Gossip Girl heart throb Chace Crawford, Glee's Matthew Morrison and Arrow actor Colton Haynes.

Out on the streets, more than 3000 police officers will be on crowd control.

"If you act up, you are going to be arrested and charged. There's no view of the fireworks from a police cell," warned Assistant Commissioner Alan Clarke.

At Mrs Macquaries Point, 6283 people had already claimed a spot by midday while the super keen began queuing for the panoramic views of Sydney Harbour and the city skyline 24 hours before the gates of the Botanic Gardens opened at 10am.

Many have queued for hours under the sun.

"It's a much younger crowd than usual, a lot of backpackers rather than families like previous years," said Karla Davies from the Royal Botanic Gardens & Domain Trust.

American Melissa Sjostedt said she had wanted to see the fireworks on the bridge since reading about it in a four-page spread in the National Geographic 10 years ago.

"Ever since that I've always wanted to see this for real, live, in person," the 30-year-old from Florida told AAP from Dawes Point Reserve.

People going to the CBD to watch the fireworks have been urged to leave their cars behind and take public transport, with road closures in place and extra trains and buses laid on for the night.

The Sydney Harbour Bridge will be closed in both directions from 11pm on Monday to 1am on Tuesday.

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30 tortured bodies found in Syria

THIRTY tortured and disfigured bodies have been found in the northern Damascus neighbourhood of Barzeh, the scene of regular clashes between regime troops and rebels, a watchdog group says.

"Thirty bodies were found in the Barzeh district. They bore signs of torture and have so far not been identified," the Syrian Observatory for Human Rights, which relies on medics and activists on the ground in compiling its tolls, said on Monday.

The Syrian Revolution General Commission, a grassroots network of anti-regime activists, estimated that there were 50 bodies, adding that "their heads were cut and disfigured to the point that it was no longer possible to identify" them.

These reports could not be verified independently because of restrictions on the international media by the Syrian authorities.

The gruesome discovery was made on Sunday, the day UN and Arab League peace envoy Lakhdar Brahimi said he has a plan to end the conflict that could be acceptable to world powers.

The Syrian conflict, which erupted in March 2011, has claimed more than 45,000 lives, according to Observatory estimates.

On Sunday itself 160 people were killed nationwide - 78 civilians, 41 soldiers and 41 revels, the Observatory said.

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Tourists flock to Sydney for NY eve

SYDNEY'S famous fireworks have attracted not only locals, but brought in overseas visitors keen to experience New Year's Eve down under.

American Melissa Sjostedt says she's wanted to see the fireworks on the bridge since reading about it in a four-page spread in the National Geographic 10 years ago.

"Ever since that I've always wanted to see this for real, live, in person," the 30-year-old from Florida told AAP from Dawes Point Reserve.

Mathieu Herman, 30, from New York City, said he'd made the trip to Australia specifically for New Year's Eve.

"I saw it last year on TV and it looked fabulous. I said to myself 'it's something I've just got to do'.

"I love Australia and if the fireworks are as good as they're supposed to be, I might move here."

Sisters Liann, 25, and Joanne, 19, from Flintshire in North Wales, got to Lady Macquarie's Chair at 10.30am to snag the best view of the fireworks.

"It's been a cracker day so far except for the achey bum, I should have brought more pillows," said Liann as she reclined, drink in hand, on a beach towel.

"It's our first time in Australia so we don't know what to expect.

"But it's got to be better than back home, it's minus five (degrees) there at the moment."

Essig Roland and his girlfriend Marika Rauecker, both from Austria, were anxiously waiting at 7pm (AEDT) just to get into the packed venue.

"What can you do but just stand here and wait" said Mr Roland, who'd been queueing for an hour.

Pop princess Kylie Minogue, chosen as the event's creative ambassador, was a big drawcard for the couple making the trip down under for New Year's this year.

"We're big Kylie fans we've already been to her concert in Austria," he said.

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Shark sightings clear SA beaches

SOUTH Australian swimmers have had a New Year's scare with shark sightings forcing the closure of two popular beaches.

Police said Moana Beach, south of Adelaide, had been evacuated and closed on Monday evening (ACDT) after a 2.5-metre shark was spotted 100 metres from the shore.

A short time later, nearby Christies Beach was closed following another sighting of a 2.5-metre shark.

Police said it was not known if it was the same animal in both sightings.

AAP pbc/a

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More Sri Lankans opt to go home

Customs picked up a boat carrying 37 suspected asylum seekers and three crew in Australian waters. Source: AAP

ANOTHER 30 Sri Lankans have opted to return home rather than spend time on Nauru, with authorities claiming a win against people smugglers.

They have joined four of their countrymen who made the return trip home last week instead of heading to the Pacific island for the processing of their claims.

"They chose not to pursue their asylum claims and no longer seek to engage Australian protection obligations," said a spokesman for the Department of Immigration and Citizenship.

"This is further proof that there is no advantage engaging with people smugglers."

Nine Sri Lankan men left Nauru early on Sunday morning, travelling on a charter flight from Perth with 21 of their countrymen who were detained in Western Australia.

"These men departed voluntarily," the spokesman said.

He said more transfers to Nauru would take place in the coming weeks, prompting more people to choose to return home.

A total of 883 Sri Lankans have returned home both voluntarily and involuntarily since August 13, when the government announced that asylum seekers would be liable for transfer to regional processing facilities.

The first group to be sent for offshore processing were transferred from Christmas Island to Nauru on September 14.

The department spokesman said people who elected to depart voluntarily could be provided with support to assist with their return.

Meanwhile, a boat carrying 37 suspected asylum seekers has been intercepted in Australian waters after experiencing engine trouble.

The crew of the vessel contacted the Australian Maritime Safety Authority Rescue Coordination Centre on Saturday afternoon for assistance after losing power in the vicinity of Ashmore Islands but was then able to continue without help.

The boat was later intercepted by HMAS Larrakia.

The 37 passengers and three crew will be transferred to Christmas Island where they will undergo initial security, health and identity checks.

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Car bomb kills 19 Pakistani pilgrims

A CAR bomb has killed at least 19 Shi'ite Muslim pilgrims in southwest Pakistan as troops searched for the killers of 21 kidnapped soldiers in the troubled northwest.

The remotely triggered bomb on Sunday hit a convoy of three buses carrying about 180 pilgrims to Iran and set one of the buses ablaze in Mastung district, officials said.

"At least 19 people have been killed and 25 injured," said Tufail Baluch, a senior district government official. "All of them were Shi'ite pilgrims."

Most of those killed were burnt to death, he said.

"The bomb was planted in a car," the official said. "The condition of some of the injured is critical."

There was no immediate claim of responsibility for the bombing at Mastung, about 30 kilometres south of Quetta, the capital of Baluchistan province.

The province has become an increasing flashpoint for sectarian violence between Pakistan's majority Sunni Muslims and minority Shi'ites, who account for about a fifth of the country's 180 million people.

Baluchistan is also rife with Islamist militancy and home to a regional insurgency which began in 2004. The insurgents are demanding political autonomy and a greater share of profits from oil and gas resources.

It was the country's second mass killing to be reported in less than a day.

In the northwest, security forces were hunting the killers of 21 soldiers whose bodies were discovered not far from two camps outside Peshawar where they had been kidnapped by the Pakistani Taliban.

About 200 militants, armed with heavy weapons including mortars and rocket launchers, stormed the government paramilitary camps before dawn on Thursday, killing two security personnel and kidnapping 23.

Officials said on Sunday that the 21 soldiers had their hands tied with rope before they were shot. Two others - one wounded and one unhurt - were also found.

Peshawar is the main city in northwest Pakistan and close to the restive tribal areas bordering Afghanistan which are regarded as havens for Taliban and al-Qaeda-linked militants.

"We found 21 bullet-riddled bodies of security personnel a short while ago in an uninhabited area," local government official Naveed Akbar told AFP early on Sunday.

"One was found alive but wounded and admitted to hospital while another managed to escape unhurt."

The bodies were handed over to families for burial as security forces cordoned off areas around Peshawar and began a search.

A senior government official told AFP the soldiers were killed after the breakdown of negotiations between a local council of tribal elders and Taliban militants.

In August, the Pakistani Taliban released a video showing what appeared to be the severed heads of a dozen soldiers, after the military said 15 troops had gone missing following fighting with militants in the Bajaur tribal district.

There has been a surge in attacks in northwest Pakistan in the past two weeks, including a suicide bombing on a political meeting in Peshawar that killed Bashir Bilour, the second top politician in Khyber Pakhtunkhwa province.

The Pakistani Taliban claimed responsibility for that attack, saying Bilour, an outspoken critic of the militants, was assassinated in revenge for the death of one of the movement's "elders".

Pakistan has lost more than 3000 soldiers in the fight against homegrown insurgents but has resisted US pressure to do more to eliminate havens used by those fighting the Americans in Afghanistan.

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Teenage girl sparks two police chases

AN allegedly drunk teenager in a stolen car has been stopped with road spikes after two car chases on NSW's mid-north coat.

Patrol officers spotted a Hyundai which had been reported stolen on the Pacific Highway at Herons Creek, about 30 kilometres south of Port Macquarie, shortly before 7.40am (AEDT) on Sunday.

But the driver allegedly failed to stop, sparking a chase as the car sped away from police.

Officers pursued the car to the Kew interchange and back onto the Pacific Highway. However, police suspended the chase when the car crossed a median strip north of Moorlands.

Just after 8.00am, a car matching the Hyundai's description was spotted on the Pacific Highway at Johns River, sparking another pursuit.

The driver is alleged to have crossed a median strip a short time later before heading north.

The Hyundai was stopped on Ross Glen Road, where police had set up traffic control and road spikes.

Police allege the driver attempted to run from the Hyundai but was arrested nearby.

A 17-year-old girl has been charged with seven offences including police pursuit, driving dangerously and driving while disqualified from holding a licence and under the influence of alcohol or other drugs.

She has been refused bail and is to appear at Parramatta Children's Court on Monday.

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Woman accused of NYC subway murder

A woman has been charged with murdering an immigrant by pushing him in front of a NY subway train. Source: AAP

A 31-YEAR-OLD New York woman is scheduled to appear before a judge after being charged with murder as a hate crime for shoving a Hindu man to his death in front of an oncoming subway train.

Erika Menendez of the Bronx borough was motivated by hatred of Muslims and Hindus, according to the Queens District Attorney's Office.

"I pushed a Muslim off the train tracks because I hate Hindus and Muslims. Ever since 2001 when they put down the twin towers, I've been beating them up," she told police.

Menendez, who is awaiting arraignment in Queens Criminal Court on Sunday, faces from 25 years to life in prison if convicted.

The victim, 46-year-old Sunando Sen, was born in India and raised Hindu, a roommate told The New York Times.

The incident took place late Thursday at a station on the number 7 line in Queens.

Menendez - who was talking to herself as she paced along the platform, according to witnesses - pushed the man as the train was pulling into the station. He apparently had his back to Menendez and did not see her.

Police released surveillance camera video footage via Twitter showing a woman running from the scene.

"The defendant is accused of committing what is every subway commuter's worst nightmare - being suddenly and senselessly pushed into the path of an oncoming train," Queens District Attorney Richard Brown said in a statement.

"The victim was allegedly shoved from behind and had no chance to defend himself. Beyond that, the hateful remarks allegedly made by the defendant and which precipitated the defendant's actions can never be tolerated by a civilised society."

Sen's death was eerily similar to that of a 58-year-old man killed on December 3 when he was pushed on to the tracks during a fight with a deranged man at a Manhattan subway station. The assailant, later identified as 30-year-old Naeem Davis, has been charged with murder. Davis is homeless.

A New York Post front page picture of the man on the tracks a split second before he was killed by the oncoming train provoked public fury as to why no one helped him - and why the tabloid newspaper published the photo.

Several million people use the New York City subway system every day, but incidents of this kind are rare.

Before the December 3 death, the last time someone was pushed on to the rails and hit by a train was in 2010. The woman survived.

Thursday night's incident appeared to have scared many New York subway riders as they kept closer to the walls as trains rolled into station.

"It's horrible," said 46-year-old city resident Elena Rodriguez. "We're feeling so insecure now to be in the subway."

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