Friday, September 3, 2010

BP: Failed blowout preventer removed from well AP

NEW ORLEANS BP PLC said the blowout preventer that failed to stop oil from spewing into the Gulf of Mexico was removed from the companys well on Friday afternoon.

The process of raising it to the surface was to be painstaking because engineers want to make sure not to damage or drop the contraption. The blowout preventer wasnt expected to reach the surface until Saturday, at which point government investigators will take possession of it.

A BP spokesman said in an e-mail to The Associated Press that the 50-foot, 300-ton device was detached from the wellhead at 1:20 p.m CDT.

Earlier in the day, a vessel had latched onto the equipment to raise it from a mile beneath the sea.

Undersea video showed the device suspended in the water. A crane on the Helix Q4000 was being used for the task.

The blowout preventer is considered a key piece of evidence in the spill investigation. Investigators will examine it and hope to gain insight into why the device failed to prevent the spill. Late Friday, the government said another blowout preventer had successfully been placed on the blown-out well.

The April 20 explosion aboard the Deepwater Horizon killed 11 workers and led to 206 million gallons of oil spewing from BPs undersea well.

Investigators know the explosion was triggered by a bubble of methane gas that escaped from the well and shot up the drill column, expanding quickly as it burst through several seals and barriers before igniting.

But they dont know exactly how or why the gas escaped. And they dont know why the blowout preventer didnt seal the well pipe at the sea bottom after the eruption, as it was supposed to. While the device didnt close � or may have closed partially � hearings have produced no clear picture of why it didnt plug the well.

Lawyers will be watching closely, as hundreds of lawsuits have been filed over the oil spill. Future liabilities faced by a number of corporations could be riding on what the analysis of the blowout preventer shows.

The raising of the blowout preventer followed Thursdays removal of a temporary cap that stopped oil from gushing into the Gulf in mid-July. No more oil was expected to leak into the sea, but crews were standing by with collection vessels just in case.

The government wanted to replace the failed blowout preventer first to deal with any pressure that is caused when a relief well BP has been drilling intersects the blown-out well.

Once that intersection occurs sometime after Labor Day, BP is expected to use mud and cement to plug the blown-out well for good from the bottom.



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9 people killed in New Zealand plane crash AP

WELLINGTON, New Zealand Nine people have died after a light aircraft belonging to a skydiving company crashed Saturday on New Zealands South Island, police said.

The plane burst into flames after takeoff from an airstrip at Fox Glacier, said Ian Henderson, a spokesman for local ambulance services. The pilot and eight passengers were killed, Greymouth Police Senior Sgt. Allyson Ealam said.

Henderson did not immediately know the ages, gender or nationalities of the dead.

Police said the aircraft was a Fletcher fixed-wing plane of a type designed and built in New Zealand.

Fox Glacier is on the western coast of the South Island, about 90 miles 150 kilometers from the main city Christchurch.



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SKorean foreign minister offers to resign AP

SEOUL, South Korea South Korean Foreign Minister Yu Myung-hwan has offered to resign over his ministrys controversial hiring of his daughter, an official said Saturday.

Yu made his offer to President Lee Myung-bak after he was accused of nepotism when his daughter was handed a midlevel post handling free trade affairs in his ministry.

Presidential spokeswoman Kim Hee-jung confirmed that Lee was informed of the resignation offer, but she did not say whether the president will accept it.

Yu said he was "sorry to have caused trouble to the public," over his daughters hiring, his spokesman said, according to Yonhap news agency. The foreign ministry spokesman was not immediately available for comment.

Lee, who has ordered a thorough audit into possible rigging of the hiring process, will likely accept the resignation offer, Yonhap said, citing an unidentified presidential official.

The resignation offer comes at a crucial time for South Korea as it is preparing to host the summit of the Group of 20 rich and developing economies in November.

It also comes amid diplomatic efforts mainly by China and North Korea to restart stalled talks aimed at ending North Koreas nuclear weapons programs.



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Pakistan Taliban say their bomber kills 43 Shiites AP

QUETTA, Pakistan A suicide bombing claimed by the Pakistani Taliban killed at least 43 Shiite Muslims at a procession in southwest Pakistan. The assault sharply drove up the toll of sectarian assaults in a country battered by massive flooding.

To the northwest in Pakistans restive tribal regions, two suspected U.S. missile strikes killed at least seven people in an area controlled by one of the main groups battling Americans in neighboring Afghanistan, Pakistani intelligence officials said.

Two other militant bombings left at least two people dead and several wounded on a day convulsed by the violence that threatens the stability of Pakistans weak civilian government � an essential but problematic Western ally in the fight against Islamist militants.

The first attack of the day was a roadside bombing in the northwestern city of Peshawar that killed one police officer and wounded three others, officials said.

Hours later, a suicide attack on a mosque belonging to the minority Ahmadi sect killed at least one person and wounded several others in the nearby town of Mardan.

Soon after, a blast killed at least 43 people in the southwestern city of Quetta at a Shiite procession calling for solidarity with Palestinians, Quetta Police Chief Ghulam Shabir Sheikh said. He said 78 people were wounded and several were in critical condition.

Quetta police officer Hamid Shakil told local television six or seven of the dead appeared to have fatal bullet wounds, and said they may have been killed by participants in the procession who opened fire wildly after the attack.

Pakistani Taliban commander Qari Hussain Mehsud told The Associated Press one of his militant carried out the suicide bombing.

"We proudly take its responsibility," he said. "Our war is against America and Pakistan security forces, but Shiites are also our target because they too are our enemies."

He said he was proud the U.S. had added the Pakistani Taliban to its international terrorism blacklist on Wednesday, and he threatened attacks in the U.S. and Europe in coming days that would resemble a recent attempted car bombing in Times Square.

U.N. Secretary-General Ban Ki-moon strongly condemned the terrorist bombings. "These attacks, which deliberately targeted Shiite Muslims and killed or injured scores of civilians, are unacceptable," U.N. associate spokesman Yves Sorokobi said at U.N. headquarters in New York.

White House press secretary Robert Gibbs says the timing of the violence makes the attacks "even more reprehensible," coming during the Muslim holy month of Ramadan and as Pakistan recovers from devastating floods.

Also Friday, two Pakistani intelligence officials told the AP three suspected American missiles hit a house in a village near Miran Shah, the main town in North Waziristan, Friday evening.

The Taliban-allied Haqqani network controls the northwestern tribal area of North Waziristan along the Afghan border but its fighters are hunted by U.S. drone aircraft that regularly unleash deadly missile attacks.

The officials, who spoke on condition of anonymity because they were not authorized to release the information to the media, said the identity of the slain was not immediately clear.

The officials said a second suspected U.S. missile strike killed two people in a vehicle in the North Waziristan village of Datta Khel. They said the men were believed to be foreign militants.

The attack in Quetta was the weeks second claimed by the Pakistani Taliban and targeting Shiites, who by some estimates make up about 20 percent of the population in the mostly Sunni Muslim country, although figures are imprecise and disputed.

A triple suicide attack Wednesday night killed 35 people at a Shiite ceremony in the eastern city of Lahore.

Shiite leader Allama Abbas Kumaili said the attacks were a result of government failure and appealed to participants to remain peaceful despite anger that led to local unrest after the bombing.

"We understand these are attempts to set Sunni and Shiite sects against each other," he said. "Our government concentrates all its efforts to secure VIPs. Common men are not their priority."

Government officials have said they cannot protect outdoor gatherings from attacks, and Interior Minister Rehman Malik called Thursday for Shiites to hold religious ceremonies indoors.

Quetta, the capital of Baluchistan province, has been described by Western officials as a base for the leadership of the Afghan Taliban but attacking there would be an expansion of the range of the Pakistan Taliban. The Pakistani group is seeking to overthrow the countrys government as it seeks to recover from flooding that has caused massive displacement, suffering and economic damage.

The floods, spawned by heavy rains weeks ago have killed more than 1,600 people and affected about 20 million. The waters are still swamping rich agricultural land in the southern provinces of Sindh and Punjab.

Flood victims say they have received little government help, and most assistance has come to them from private charities. The International Committee of the Red Cross warned Thursday that survivors anger was beginning to hamper those aid efforts.

About 500 survivors blocked a key road in the Sindh town of Gharo on Friday to protest inadequate food and drinking water.

The White House said Friday that President Barack Obama has ordered an additional $33 million to aid Pakistani flood victims. The U.S. has already provided aid funding and military helicopters to help rescue operations.

___

Mahsud reported from Dera Ismail Khan. Associated Press Writers Rasool Dawar in Mir Ali, Riaz Khan in Peshawar, Vincent Thian in Gharo, and Edith M. Lederer at the United Nations contributed to this report.



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Report: Blackwater created shell companies AP

WASHINGTON The security company Blackwater Worldwide formed a network of 30 shell companies and subsidiaries to try to get millions of dollars in government business after the company faced strong criticism for reckless conduct in Iraq, The New York Times reported Friday.

The newspaper said that it was unclear how many of the created companies got American contracts but that at least three of them obtained work with the U.S. military and the CIA.

Sen. Carl Levin, chairman of the Senate Armed Services Committee, has asked the Justice Department to see whether Blackwater misled the government when using the subsidiaries to gain government contracts, according to the Times.

It said Levins committee found that North Carolina-based Blackwater, which now is known as Xe Services, went to great lengths to find ways to get lucrative government work despite criminal charges and criticism stemming from a 2007 incident in which Blackwater guards killed 17 Iraqi civilians. A committee chart outlines the web of Blackwater subsidiaries.

Messages left late Friday with spokespeople for the Michigan Democrat and Xe were not immediately answered.

The 2007 incident and other reports of abuses by Blackwater employees in Iraq led to criminal investigations and congressional hearings, and resulted in the company losing a lucrative contract with the State Department to provide security in Iraq.

But recently the company was awarded a $100 million contract to provide security for the agency in Afghanistan, prompting criticism from some in Congress. CIA Director Leon Panetta said that the CIA had no choice but to hire the company because it underbid others by $26 million and that a CIA review concluded that the contractor had cleaned up its act.

Last year, Panetta canceled a contract with Xe that allowed the companys operatives to load missiles on Predator drones in Pakistan, and shifted the work to government personnel.

However, the Times quoted former Blackwater officials as saying that at least two Blackwater-affiliated companies, XPG and Greystone, obtained secret contracts from the CIA to provide security to agency operatives.

The newspaper said the network of subsidiaries, including several located in offshore tax havens, were uncovered as part of the Armed Services Committees examination of government contracting and not an investigation solely into Blackwater. But Levin questioned why Blackwater would need to create so many companies with various names to seek out government business, according to the Times.

The report quoted unidentified government officials and former Blackwater employees as saying that the network of companies allowed Blackwater to obscure its involvement in government work from contracting officials and the public, and to ensure a low profile for its classified activities.



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Powerful 7.1 quake hits New Zealands South Island AP

WELLINGTON, New Zealand A powerful 7.1-magnitude earthquake damaged buildings, cut power and knocked fleeing residents off their feet on New Zealands South Island early Saturday, but there were so far no deaths and only two injuries reported.

Panicked residents in their pajamas ran into the streets of the southern city of Christchurch after the pre-dawn quake, residents said. There were reports of some people trapped in damaged buildings � though none appeared to be crushed by rubble � and a few looters broke into some of the damaged shops in the city of 400,000, authorities said.

Chimneys and walls had fallen from older buildings, roads had been blocked, traffic lights out and power, gas and water supplies disrupted, Christchurch Mayor Bob Parker said. He warned that continuing aftershocks could cause masonry to fall from damaged buildings.

"The fronts of at least five buildings in the central city have collapsed, and rubble is strewn across many roads," Christchurch resident Angela Morgan told The Associated Press. "There is quite significant damage, really, with reports that some people were trapped in damaged houses."

Suburban dweller Mark OConnell said his house was full of smashed glass, food tossed from shelves, with sets of drawers, TVs and computers tipped over.

"We were thrown from wall to wall as we tried to escape down the stairs to get to safety," he told the AP.

The quake, which hit 19 miles 30 kilometers west of Christchurch according to the state geological agency GNS Science, shook a wide area, with some residents saying buildings had collapsed and power was severed. No tsunami alert was issued.

GNS Science initially reported the quake as magnitude 7.4, but later downgraded it after re-examining quake records. The U.S. Geological Survey, in America, measured the quake at 7.0.

Army troops were on standby to assist, Minister of Civil Defense John Carter said, as a state of civil emergency was declared.

"I think weve been extremely lucky as a nation that theres been no fatalities," Carter told reporters, though he said infrastructure damage was major. Earthquake and insurance specialists would give government an initial damage assessment within 48 hours, he said.

Parker said the quake caused "a lot of damage to our key infrastructure ... water, waste water sewerage systems ... but the most important thing is that there has been no loss of life."

Christchurch fire service spokesman Mike Bowden said a number of people had been trapped in buildings by fallen chimneys and blocked entrances, but there were no reports of people pinned under rubble. Rescue teams were out checking premises.

Christchurch Hospital said it had treated two men with serious injuries and a number of people with minor injuries.

One man was hit by a falling chimney and was in serious condition in intensive care, while a second was badly cut by glass, hospital spokeswoman Michele Hider said.

Christchurch police reported road damage in parts of the city of 400,000 people, with a series of sharp aftershocks rocking the area. Police officers cordoned off some streets where rubble was strewn about. Video showed parked cars crushed by heaps of fallen bricks, and buckled roads.

"There is considerable damage in the central city and weve also had reports of looting, just shop windows broken and easy picking of displays," Police Inspector Mike Coleman told New Zealands National Radio.

Police Inspector Al Stewart told the radio that some people had been arrested for looting.

"We have some reports of people smashing storefront windows and trying to grab some property that is not theirs ... weve got police on the streets and were dealing with that," he said.

The quake hit at 4:35 a.m. 1635 GMT shaking thousands of residents awake, New Zealands National Radio reported. Some 12 aftershocks have rocked the region since, ranging from 5.3 to 3.9 in magnitude, GNS Science reported on its web site.

Prime Minister John Key, Carter and Energy Minister Gerry Brownlee were to fly to Christchurch to inspect damage and review the situation, officials said.

Key said his sister, who lives in Christchurch, messaged him that "they had had an enormous earthquake and it had been terrifying ... that it went on for so long and was so violent they were getting knocked off their feet."

Civil defense agency spokesman David Millar said at least six bridges in the region had been badly damaged, while the historic Empire hotel in the port town of Lyttelton was "very unstable" and in danger of collapse. Several wharves at the port had been damaged, while roads, shops and other buildings in rural towns around Christchurch had also suffered damage, with some shop fronts knocked down in the jolt.

Inspector Coleman said residents of the citys low-lying eastern suburbs had been advised to be ready to evacuate their properties, after power, gas, sewerage and water systems were cut by the quake.

Resident Colleen Simpson said panicked residents ran into the street in their pajamas. Some buildings had collapsed, there was no power, and the mobile telephone network had failed.

"Oh my God. There is a row of shops completely demolished right in front of me," Simpson told the Stuff news Web site.

Kiwirail rail transport group spokesman Kevin Ramshaw said 13 mostly freight trains had been halted on South Island lines, with some damage already confirmed to rail lines north of Christchurch.

Christchurch International Airport was closed after the quake as a precaution, as experts checked runways and terminal buildings, a spokesman said.

New Zealand sits above an area of the Earths crust where two tectonic plates collide. The country records more than 14,000 earthquakes a year � but only about 150 are felt by residents. Fewer than 10 a year do any damage.

New Zealands last major earthquake was a magnitude 7.8 in South Islands Fiordland region on July 16, 2009 � a temblor that moved the southern tip of the country 12 inches 30 centimeters closer to Australia, seismologist Ken Gledhill said at the time.

This version corrects police officials name to Al Stewart in paragraph 17



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Official: Honduran helped massacre survivor flee AP

TEGUCIGALPA, Honduras A Honduran who survived the massacre of 72 migrants in Mexico helped untie the only other survivor � a wounded Ecuadorean � and the two fled together, an official said Friday.

In an interview with El Heraldo newspaper, Honduran Deputy Foreign Minister Alden Rivera revealed details for the first time about the escape.

Mexican officials had previously said there was only one survivor of the massacre � the Ecuadorean who stumbled wounded to a military checkpoint and alerted marines. The Mexicans said when they learned that a Honduran also survived, they kept it a secret to protect him. But Ecuadorean President Rafael Correa revealed the information earlier this week.

Investigators believe the Zetas drug gang kidnapped the migrants and gunned them down after they refused to work for the cartel.

Marines found the bound, blindfolded bodies slumped against a wall last week after raiding the ranch in the northern state of Tamaulipas, which has been embroiled in a vicious turf battle between the Zetas and their former employer, the Gulf Cartel.

Mexican officials say cartels have increasingly been recruiting vulnerable migrants to smuggle drugs.

After the shooting stopped, the Honduran survivor managed to untie himself, then helped free the Ecuadorean, who had been shot in the neck, Rivera said.

Rivera did not say whether the Honduran was hurt but the Ecuadorean survivor, Luis Freddy Lala Pomavilla, told state-run television in Ecuador on Thursday that the Honduran somehow managed to avoid being shot.

Lala, 18, was flown home to Ecuador on Sunday after recovering from his wounds at a Mexican hospital. He is now under a witness protection program in Ecuador. The Honduran is under the protection of Mexican security forces.

Rivera said the two migrants fled the ranch together but when they heard gunshots behind them, they separated.

Lala said he approached two groups of people who refused to help him until he finally reached the marine checkpoint.

The Honduran, Rivera said, walked for a long time until he found a migrant shelter. Rivera revealed no other details about the migrants escape, but said he was in good health and had been in contact with his family in Honduras.

Lala told Ecuadorean television that a total of 76 migrants were traveling together � Hondurans, Ecuadoreans, Guatemalans and at least one Brazilian.

But a spokesman for Mexicos Attorney Generals Office, Ricardo Najera, said Friday that 77 people were in the group: the 72 killed, the two survivors and three Mexicans whose whereabouts were unknown.

The Mexicans were two drivers and an assistant, he said, adding the information came from the testimony of the Honduran and the Ecuadorean migrants.

In a statement that Lala gave to Mexican investigators, he said one migrant agreed to work with the Zetas, but did not reveal what happened to that person. The Associated Press has access to that statement last week.

During a meeting in Guatemala, meanwhile, Central American foreign ministers urged Mexico to find the killers and take steps to avoid more atrocities.

"We call on Mexican authorities to take measures as soon as possible to avoid events like the one that occurred in Tamaulipas," said Honduran Foreign Minister Mario Canahuati.



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Earl threatens Mass. with wind, rain, surf AP

CHATHAM, Mass. A weakening but still dangerous Hurricane Earl steamed toward the gray-shingled cottages and fishing villages of Cape Cod on Friday night, disrupting peoples vacations on the unofficial final weekend of the short New England summer.

Packing winds of 75 mph, the storm swirled up the Eastern Seaboard after sideswiping North Carolinas Outer Banks, where it caused flooding but no injuries and little damage. The storm was swinging of New York City, Long Island and the rest of the mid-Atlantic region, but was expected to bring rain and high winds as it passes just off Cape Cod, Nantucket Island and Marthas Vineyard late Friday night.

Vacationers pulled their boats from the water and canceled Labor Day weekend reservations on Nantucket, the well-to-do resort island and old-time whaling port expected to get the worst of the storm. Shopkeepers boarded up their windows. Swimmers in New England were warned to stay out of the water � or off the beach altogether � because of the danger of getting swept away by high waves.

Airlines canceled dozens of flights into New England, and Amtrak suspended train service between New York and Boston.

No large-scale evacuations were ordered for Cape Cod, where fishermen and other hardy year-round residents have been dealing with gusty noreasters for generations.

"We kind of roll with the punches out here. Its not a huge deal for us," said Scott Thomas, president of the Nantucket Chamber of Commerce.

On Cape Cod, Ellen McDonough and a friend waited for one of the last ferries to Nantucket before service was suspended because of the approaching storm. "Its not a 3-foot snowstorm. I think us New Englanders are tough," McDonough said. "Weve had this weekend planned, and no hurricane is going to stop us."

Nantucket Police Chief William Pittman warned island residents against complacency, saying Earl was still a dangerous storm with severe winds.

By midday Friday, Earl had dropped to a Category 1 storm � down from a fearsome Category 4 with 145 mph winds a day earlier. By 8 p.m., Earl was a weak hurricane with maximum sustained winds just above the threshold for a hurricane. It seemed likely to be a tropical storm by the time it passed about 50 to 75 miles southeast of Nantucket.

As Earl lost steam and veered farther east, the National Hurricane Center reduced the New England areas under a hurricane warning to Cape Cod, Nantucket and Marthas Vineyard, the elite vacation spot that President Barack Obama left just last weekend.

The National Weather Service was forecasting winds up to 65 mph on Nantucket with gusts up to 85 mph. On Cape Cod, winds up to 45 mph with gusts of up to 60 mph were expected. At 9 p.m., Nantucket was seeing rain, rough surf and winds gusts of 31 mph.

"Weve had some localized flooding on some roads � nothing that a really bad rainstorms at this time of the summer dont already create," Nantucket Assistant Town Manager Gregg Tivnan said Friday night. Officials, however, were expecting heavier rain later in the night.

The last time the Cape was hit directly by a hurricane was 1991, when Bob brought 75 mph gusts that ripped through the regions grassy dunes, snapped trees and tore roofs off the weathered gray homes.

Few seemed worried about a repeat Friday in Chatham, a fishing village at Cape Cods eastern edge where tourists strolled past the bookstores, cafes and ice cream parlors on Main Street. A few stores had put plywood over their windows, including the Ben Franklin Old Fashioned Variety Store. "Cmon Earl, were ready for you," a handwritten note read.

Earl was staying far off New Jersey and the eastern tip of New Yorks Long Island as it made its way north. But it kicked up dangerous riptides up and down the coast. In New Jersey, two young men apparently died earlier this week in the rough surf caused by Earl and the hurricane before it, Danielle.

Rain from the outer bands of the hurricane forced a 25-minute delay at the U.S. Open tennis tournament in New York City. It also forced the postponement of a Red Sox-White Sox game in Boston.

On the Outer Banks, officials had urged tens of thousands of visitors and residents to leave the dangerously exposed islands as the storm closed in, but hundreds chose to wait it out in their boarded-up homes.

Earls winds had dropped to 105 mph by the time the storm brushed past the ribbon of islands before dawn, and the storm center got no closer to shore than 85 miles. Hurricane-force winds, which start at 74 mph, apparently did not even reach the Outer Banks, said the National Hurricane Centers chief forecaster, James Franklin.

North Carolina Gov. Beverly Perdue said there was no serious damage and urged people to get back out for the Labor Day weekend to "have a little fun and spend some money."

In Rhode Island, the popular tourist destination Block Island was expecting gusts as high as 60 mph. Gov. Don Carcieri warned of possible flooding on the mainland, and asked people to stay off the roads, but added: "Everything looks like weve dodged this."

Twenty miles out off the Maine coast, lobstermen on Matinicus Island were cautious after getting fooled by Hurricane Bill, which missed the mainland last year but sent tides and rough seas that destroyed their traps. This time, they moved their gear to the safety of deeper water or pulled their traps out altogether.

At Maines Acadia National Park, officials closed most of a road where a 7-year-old girl was swept to her death by a 20-foot wave last year while watching the swells from Bill.

___

Associated Press writers Mike Baker in Buxton, N.C.; Jeffrey Collins in Columbia, S.C.; Michelle Smith in Providence, R.I.; David Sharp in Portland, Maine; and Lyle Moran, Denise Lavoie, Jay Lindsay and Rodrique Ngowi in Boston contributed to this report.



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Powerful 7.1 quake hits New Zealands South Island AP

WELLINGTON, New Zealand A powerful 7.1-magnitude earthquake struck much of New Zealands South Island early Saturday and caused widespread damage, but there were just two reports of serious injuries. Looters broke into some damaged shops in Christchurch, police said.

The quake, which hit 19 miles 30 kilometers west of the southern city of Christchurch according to the state geological agency GNS Science, shook a wide area, with some residents saying buildings had collapsed and power was severed. No tsunami alert was issued.

GNS Science initially reported the quake as magnitude 7.4, but later downgraded it after re-examining quake records. The U.S. Geological Survey, in America, measured the quake at 7.0.

Christchurch Mayor Bob Parker declared a state of emergency four hours after the quake rocked the region, warning people that continuing aftershocks could cause masonry to fall from damaged buildings.

The emergency meant parts of the city would be closed off and some buildings closed as unsafe, he said.

Minister of Civil Defense John Carter said a state of civil emergency was declared as the quake was "a significant disaster," and army troops were on standby to assist.

Parker said the "sharp, vicious earthquake has caused significant damage in parts of the city ... with walls collapsed that have fallen into the streets."

Chimneys and walls had fallen from older buildings, with roads blocked, traffic lights out and power, gas and water supplies disrupted, he said.

"The fronts of at least five buildings in the central city have collapsed and rubble is strewn across many roads," Christchurch resident Angela Morgan told The Associated Press.

"Roads have subsided where water mains have broken and a lot of people evacuated in panic from seaside areas for fear of a tsunami," she said, adding that "there is quite significant damage, really, with reports that some people were trapped in damaged houses."

Christchurch fire service spokesman Mike Bowden said a number of people had been trapped in buildings by fallen chimneys and blocked entrances, but there were no reports of people pinned under rubble. Rescue teams were out checking premises.

Christchurch Hospital said it had treated two men with serious injuries and a number of people with minor injuries.

One man was hit by a falling chimney and was in serious condition in intensive care, while a second was badly cut by glass, hospital spokeswoman Michele Hider said.

Christchurch police reported road damage in parts of the city of 400,000 people, with a series of sharp aftershocks rocking the area. Police officers cordoned off some streets where rubble was strewn about. Video showed parked cars crushed by heaps of fallen bricks, and buckled roads.

"There is considerable damage in the central city and weve also had reports of looting, just shop windows broken and easy picking of displays," Police Inspector Mike Coleman told New Zealands National Radio.

Police Inspector Alf Stewart told the radio that some people had been arrested for looting.

"We have some reports of people smashing storefront windows and trying to grab some property that is not theirs ... weve got police on the streets and were dealing with that," he said.

Suburban dweller Mark OConnell said his house was full of smashed glass, food tossed from shelves, with sets of drawers, TVs and computers tipped over.

"She was a beauty, we were thrown from wall to wall as we tried to escape down the stairs to get to safety," he told the AP. "It was pitch black with the power cut and we walked through smashed glass everywhere on the floor."

The quake hit at 4:35 a.m. 1635 GMT shaking thousands of residents awake, New Zealands National Radio reported. Some 12 aftershocks have rocked the region since, ranging from 5.3 to 3.9 in magnitude, GNS Science reported on its web site.

Prime Minister John Key, Carter and Energy Minister Gerry Brownlee were to fly to Christchurch to inspect damage and review the situation, officials said.

Civil defense agency spokesman David Millar said at least six bridges in the region had been badly damaged, while the historic Empire hotel in the port town of Lyttelton was "very unstable" and in danger of collapse. Roads, shops and other buildings in rural towns around Christchurch had also suffered damage, with some shop fronts knocked down in the jolt.

Inspector Coleman said residents of the citys low-lying eastern suburbs had been advised to be ready to evacuate their properties, after power, gas, sewerage and water systems were cut by the quake.

Resident Colleen Simpson said panicked residents ran into the street in their pajamas. Some buildings had collapsed, there was no power, and the mobile telephone network had failed.

"Oh my God. There is a row of shops completely demolished right in front of me," Simpson told the Stuff news Web site.

Kiwirail rail transport group spokesman Kevin Ramshaw said 13 mostly freight trains had been halted on South Island lines, with some damage already confirmed to rail lines north of Christchurch.

Christchurch International Airport was closed after the quake as a precaution, as experts checked runways and terminal buildings, a spokesman said.

The Pacific Tsunami Warning Center said "no destructive widespread tsunami threat existed, based on historical earthquake and tsunami data."

New Zealand sits above an area of the Earths crust where two tectonic plates collide. The country records more than 14,000 earthquakes a year � but only about 150 are felt by residents. Fewer than 10 a year do any damage.

New Zealands last major earthquake was a magnitude 7.8 in South Islands Fiordland region on July 16, 2009 � a tremblor which moved the southern tip of the country 12 inches 30 centimeters closer to Australia, seismologist Ken Gledhill said at the time.

Gledhill, director of GNS Sciences "GeoNet" national earthquake monitoring project, said the islands geographic shift showed the immensity of the forces involved.



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Obama planning new package of economic aid AP

WASHINGTON Eager to jumpstart the economy ahead of crucial midterm elections, President Barack Obama said Friday he intends to unveil a new package of proposals, likely including tax cuts and targeted spending, to spark job growth.

Obama spoke in the Rose Garden after the August jobs report came out better than expected, showing the private sector adding 67,000 new jobs last month and revising upward the numbers from June and July. But unemployment ticked upward to 9.6 percent as more people entered the job market, and the president said it wasnt good enough.

"Thats why we need to take further steps to create jobs and keep the economy growing, including extending tax cuts for the middle class and investing in the areas of our economy where the potential for job growth is greatest," Obama said.

"We are confident that we are moving in the right direction, but we want to keep this recovery moving stronger and accelerate the job growth thats needed so desperately."

Administration officials say a big new stimulus bill like last years $814 billion measure is not in the offing - nervous lawmakers looking to Novembers balloting would not be expected to approve an expensive new measure. But Obama said hed be proposing a new set of ideas next week. Hes likely to detail them during a speech on the economy Wednesday in Cleveland, midway through an economy-focused week capped by a rare White House news conference.

Obamas package could include a number of provisions that have languished in Congress for much of the year, including infrastructure bonds for municipalities and extensions for a series of tax breaks for businesses and individuals that expired at the end of 2009. Democratic leaders are considering making one of the tax breaks permanent, for businesses that invest in research and development.

They are also considering extending a law passed in March that exempts companies that hire unemployed workers from paying Social Security taxes on those workers through December. Sen. Charles Schumer, D-N.Y., has proposed extending the exemption an additional six months.

Obama is continuing to prod the Senate to pass a bill that calls for about $12 billion in tax breaks for small businesses and a $30 billion fund to help unfreeze small business lending. Republicans have likened the bill to the unpopular bailout of the financial industry. And the president wants to make permanent the portion of George W. Bushs tax cuts affecting the middle class.

The House has already passed many of the provisions, but they have stalled in the Senate because Republicans and Democrats could not agree on how to pay for them.

Jim Manley, spokesman for Senate Majority Leader Harry Reid, D-Nev., said Reid hoped to be able to get the small business measure through once the Senate goes back in session later this month but the prospect for other ideas was cloudier. Moreover, some of the ideas are relatively small bore, so even if they did pass in the next month or two its unlikely theyd make a real dent in the economy before the elections.

Departing White House economist Christina Romer told The Associated Press that the new proposals would be "targeted measures aimed at particular problems or incentivizing a particular area of the economy." Romer is leaving her post as chair of the presidents Council of Economic Advisers on Friday to return to the University of California, Berkley.

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Associated Press writers Julie Pace and Stephen Ohlemacher contributed to this report.

This version corrects price tag of stimulus bill to new estimate of $814 billion.



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