French seal off Mali's Timbuktu, rebels torch library

GAO, Mali (Reuters) - French and Malian troops retook control of Timbuktu, a UNESCO World Heritage site, on Monday after Islamist rebel occupiers fled the ancient Sahara trading town and torched several buildings, including a library holding priceless manuscripts.

The United States and the European Union are backing a French-led intervention in Mali against al Qaeda-allied militants they fear could use the West African state's desert north as a springboard for international attacks.

The recovery of Timbuktu followed the swift capture by French and Malian forces at the weekend of Gao, another major town in Mali's north that had been occupied by the alliance of jihadist groups since last year.

The two-week-old mission by France in its former Sahel colony, at the request of Mali's government, has driven the Islamist rebels northwards out of towns into the desert and mountains.

Without a shot being fired, 1,000 French soldiers and paratroopers and 200 Malian troops seized Timbuktu airport and surrounded the town on the banks of the Niger River, looking to block the escape of insurgents.

In both Timbuktu and Gao, cheering crowds turned out to welcome the French and Malian troops.

A third town in Mali's vast desert north, Kidal, had remained in Islamist militant hands. But Malian Tuareg MNLA rebels, who are seeking autonomy for their northern region, said on Monday they had taken charge in Kidal after Islamist fighters abandoned it.

A diplomat in Bamako confirmed the MNLA takeover of Kidal.

A French military spokesman said the assault forces at Timbuktu were avoiding any fighting inside the city to protect the cultural treasures, mosques and religious shrines in what is considered a seat of Islamic learning.

But Timbuktu Mayor Ousmane Halle told Reuters departing Islamist gunmen had four days earlier set fire to the town's new Ahmed Baba Institute, which contained thousands of manuscripts.

UNESCO spokesman Roni Amelan said the Paris-based U.N. cultural agency was "horrified" by the news of the fire, but was awaiting a full assessment of the damage.

Ali Baba, a worker at the Ahmed Baba Institute, told Sky News in Timbuktu more than 3,000 manuscripts had been destroyed. "They are bandits. They have burned some manuscripts and also stole a lot of manuscripts which they took with them," he said.

Marie Rodet, an African history lecturer at Britain's School of Oriental and African Studies, said Timbuktu held one of the greatest libraries of Islamic manuscripts in the world.

"It's pure retaliation. They (the Islamist militant rebels) knew they were losing the battle and they hit where it really hurts," Rodet told Reuters. "These people are not interested in any intellectual debate. They are anti-intellectual."

ISLAMISTS "ALL FLED"

The Ahmed Baba Institute, one of several libraries and collections in Timbuktu containing fragile documents dating back to the 13th century, is named after a Timbuktu-born contemporary of William Shakespeare and houses more than 20,000 scholarly manuscripts. Some were stored in underground vaults.

The French and Malians have encountered no resistance so far in Timbuktu. But they will now have to comb through a labyrinth of ancient mosques, monuments, mud-brick homes and narrow alleyways to flush out any hiding fighters.

The Islamist forces comprise a loose alliance that groups Al Qaeda in the Islamic Maghreb (AQIM) with Malian Islamist group Ansar Dine and AQIM splinter MUJWA.

They have retreated in the face of relentless French air strikes and superior firepower and are believed to be sheltering in the rugged Adrar des Ifoghas mountain range, north of Kidal.

The MNLA Tuareg rebels who say they now hold Kidal have offered to help the French-led offensive against the al Qaeda-affiliated Islamists. It was not clear, however, whether the French and Malians would steer their offensive further towards Kidal, or hold negotiations with the MNLA.

FRANCE: MALI "BEING LIBERATED"

The world was shocked by Timbuktu's capture in April by Tuareg fighters, whose separatist rebellion was later hijacked by Islamist radicals who imposed severe sharia (Islamic law).

Provoking international outrage, the Muslim militants - who follow a more radical Salafist brand of Islam - destroyed dozens of ancient shrines in Timbuktu sacred to Sufi Muslims, condemning them as idolatrous and un-Islamic.

They also imposed a strict form of Islamic law, or sharia, authorizing the stoning of adulterers and amputations for thieves, while forcing women to go veiled.

On Sunday, many women among the thousands of Gao residents who came out to celebrate the rebels' expulsion made a point of going unveiled. Other residents smoked cigarettes and played music to flout the bans previously imposed by the rebels.

Hundreds of troops from Niger and Chad have been brought to Gao to help secure the town.

"Little by little, Mali is being liberated," French Foreign Minister Laurent Fabius told France 2 television.

Speaking at a news conference in Paris, French President Francois Hollande said French troops would take a step back once the job of retaking key towns was complete, and Malian and other African troops would take over the task of hunting the rebels.

"They are the ones who will go into the northern part, which we know is the most difficult because that's where the terrorists are hiding," Hollande said.

As the French and Malian troops thrust into northern Mali, African troops for a U.N.-backed continental intervention force for Mali, expected to number 7,700, are being flown into the country, despite severe delays and logistical problems.

Outgoing African Union Chairman President Thomas Boni Yayi of Benin scolded AU states at a weekend summit in Addis Ababa for their slow response to assist Mali while former colonial power France took the lead in the military operation.

Burkina Faso, Benin, Nigeria, Senegal, Togo, Niger and Chad are providing soldiers for the AFISMA force. Burundi and other nations have pledged to contribute.

AU Peace and Security Commissioner Ramtane Lamamra said these regional troops could play a useful "clean-up" role once the main military operations against the Islamist rebels end.

Speaking in Addis Ababa on Monday, U.N. Secretary-General Ban Ki-moon said the U.N. was "actively considering" helping the troop-contributing African countries with logistical support.

(Additional reporting by Richard Valdmanis in Sevare, Mali, Bate Felix and David Lewis in Dakar, Maria Golovina in London, Alexandria Sage, Vicky Buffery and Emmanuel Jarry in Paris, Tiemoko Diallo in Bamako, Abdoulaye Massalatchi in Niamey, Richard Lough and Aaron Masho in Addis Ababa; Writing by Pascal Fletcher; Editing by Andrew Heavens)

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Egyptian protesters defy curfew, attack police stations

CAIRO/ISMAILIA, Egypt (Reuters) - Egyptian protesters defied an overnight curfew in restive towns along the Suez Canal, attacking police stations after Islamist President Mohamed Mursi imposed emergency rule to end days of clashes that have left at least 52 people dead.

At least two men died in overnight fighting in the canal city of Port Said, the latest unrest in a wave of violence unleashed last week on the eve of the anniversary of the 2011 revolt that brought down autocrat Hosni Mubarak.

Political opponents spurned a call by Mursi for talks on Monday to try to end the violence. Instead, huge crowds of protesters took to the streets in Cairo and Alexandria, and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi imposed emergency rule and a curfew on Sunday.

"Down, down with Mohamed Mursi! Down, down with the state of emergency!" crowds shouted in Ismailia. In Cairo, flames lit up the night sky as protesters set vehicles ablaze.

The demonstrators accuse Mubarak's successor Mursi of betraying the two-year-old revolution. Mursi and his supporters accuse the protesters of seeking to overthrow Egypt's first ever democratically elected leader by undemocratic means.

Debris from days of unrest was strewn on the streets around Cairo's Tahrir Square, cauldron of the anti-Mubarak uprising.

Youths clambered over a burned-out police van. But unlike on previous mornings in the past few days, there was no early sign of renewed clashes with police.

In Port Said, men attacked police stations after dark. A security source said some police and troops were injured. A medical source said two men were killed and 12 injured in the clashes, including 10 with gunshot wounds.

"The people want to bring down the regime," crowds chanted in Alexandria. "Leave means go, and don't say no!"

Since Mubarak was toppled, Islamists have won two referendums, two parliamentary elections and a presidential vote.

But that legitimacy has been challenged by an opposition that accuses Mursi of imposing a new form of authoritarianism, and punctuated by repeated waves of unrest that have prevented a return to stability in the most populous Arab state.

The army has already been deployed in Port Said and Suez and the government agreed a measure to let soldiers arrest civilians as part of the state of emergency.

WESTERN CONCERNS

The instability has provoked unease in Western capitals, where officials worry about the direction of a powerful regional player that has a peace deal with Israel. The United States condemned the bloodshed and called on Egyptian leaders to make clear violence is not acceptable.

In Cairo on Monday, police fired volleys of teargas at stone-throwing protesters near Tahrir. Demonstrators burned two police vehicles and stormed into the downtown Semiramis Intercontinental hotel.

The political unrest in the Suez Canal cities has been exacerbated by street violence linked to death penalties imposed on soccer supporters convicted of involvement in stadium rioting in Port Said a year ago.

Mursi's invitation to opponents to hold a national dialogue with the Islamists on Monday was spurned by the main opposition National Salvation Front coalition, which rejected it as "cosmetic".

The only liberal politician who attended, Ayman Nour, told Egypt's al-Hayat channel after the meeting ended late on Monday that attendees agreed to meet again in a week.

He said Mursi had promised to look at changes to the constitution requested by the opposition but did not consider the opposition's request for a government of national unity.

The president announced the emergency measures on television on Sunday. "The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said.

His demeanor infuriated his opponents, not least when he wagged a finger at the camera.

Some activists said Mursi's measures to try to impose control on the turbulent streets could backfire.

"Martial law, state of emergency and army arrests of civilians are not a solution to the crisis," said Ahmed Maher of the April 6 movement that helped galvanize the 2011 uprising. "All this will do is further provoke the youth. The solution has to be a political one that addresses the roots of the problem."

(Additional reporting by Edmund Blair and Shaimaa Fayed in Cairo and Abdelrahman Youssef in Alexandria; Writing by Edmund Blair, Yasmine Saleh and Peter Graff; Editing by John Stonestreet)

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Syrian refugees at more than 700,000 as outflow swells: U.N.

GENEVA (Reuters) - More than 700,000 Syrian refugees have registered in neighboring countries or await processing there, as aid workers struggle to keep up with the exodus, the United Nations said on Tuesday.

"We have seen an unrelenting flow of refugees across all borders. We are running double shifts to register people," Sybella Wilkes, spokeswoman for the U.N. High Commissioner for Refugees (UNHCR), told Reuters in Geneva.

(Reporting by Stephanie Nebehay; Editing by Janet Lawrence)

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Passenger plane crashes in Kazakhstan, agency says 21 on board

ALMATY (Reuters) - A passenger plane crashed near Kazakhstan's commercial capital of Almaty on Tuesday, killing 20 people, news agencies quoted SCAT airline as saying.

The plane had been en route from the city of Kokshetau in northern Kazakhstan to Almaty in the southeast of the country when it crashed near the village of Kyzyl Tu, Interfax news agency said.

Almaty and the surrounding area were veiled in thick fog on Tuesday.

SCAT is based in Kazakhstan and operates extensive domestic services and some international flights.

It was the second plane crash in the Central Asian country and former Soviet republic in just a over a month.

On December 25, a military transport airplane crashed in bad weather near the southern Kazakh city of Shymkent, killing all 27 people on board.

(Reporting by Dmitry Solovyov, Editing by Timothy Heritage)

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Nightclub fire kills 233 in Brazil

SANTA MARIA, Brazil (Reuters) - A nightclub fire killed at least 233 people in southern Brazil on Sunday when a band's pyrotechnics show set the building ablaze and fleeing partygoers stampeded toward blocked exits in the ensuing panic.

Most of those who died were suffocated by toxic fumes that rapidly filled the crowded club after sparks from pyrotechnics used by the band for visual effects set fire to soundproofing on the ceiling, local fire officials said.

"Smoke filled the place instantly, the heat became unbearable," survivor Murilo Tiescher, a medical student, told GloboNews TV. "People could not find the only exit. They went to the toilet thinking it was the exit and many died there."

Firemen said one exit was locked and that club bouncers, who at first thought those fleeing were trying to skip out on bar tabs, initially blocked patrons from leaving. The security staff relented only when they saw flames engulfing the ceiling.

The tragedy in the university town of Santa Maria in one of Brazil's most prosperous states comes as the country scrambles to improve safety, security and logistical shortfalls before the 2014 World Cup soccer tournament and the 2016 Olympics, both intended to showcase the economic advances and first-world ambitions of Latin America's largest nation.

In Santa Maria, a city of more than 275,000 people, rescue workers and weary officials wept alongside family and friends of the victims at a gymnasium being used as a makeshift morgue.

"It's the saddest, saddest day of my life," said Neusa Soares, the mother of one of those killed, 22-year-old Viviane Tolio Soares. "I never thought I would have to live to see my girl go away."

President Dilma Rousseff cut short an official visit to Chile and flew to Santa Maria, where she wept as she spoke to relatives of the victims, most of whom were university students.

"All I can say at the moment is that my feelings are of deep sorrow," said Rousseff, who began her political career in Rio Grande do Sul, the state where the fire occurred.

It was the deadliest nightclub fire since 309 people died in a discotheque blaze in China in 2000 and Brazil's worst fire at an entertainment venue since a disgruntled employee set fire to a circus in 1961, killing well over 300 people.

'BARRIER OF THE DEAD'

Local authorities said 120 men and 113 women died in the fire, and 92 people are still being treated in hospitals.

News of the fire broke on Sunday morning, when local news broadcast images of shocked people outside the nightclub called Boate Kiss. Gradually, grisly details emerged.

"We ran into a barrier of the dead at the exit," Colonel Guido Pedroso de Melo, commander of the fire brigade in Rio Grande do Sul, said of the scene that firefighters found on arrival. "We had to clear a path to get to the rest of those that were inside."

Pedroso de Melo said the popular nightclub was overcrowded with 1,500 people packed inside and they could not exit fast.

"Security guards blocked their exit and did not allow them to leave quickly. That caused panic," he said.

The fire chief said the club was authorized to be open, though its permit was in the process of being renewed. But he pointed to several egregious safety violations - from the flare that went off during the show to the locked door that kept people from getting out.

"The problem was the use of pyrotechnics, which is not permitted," Pedroso de Melo said.

The club's management said in a statement that its staff was trained and prepared to deal with any emergency. It said it would help authorities with their investigation.

One of the club's owners has surrendered to police for questioning, GloboNews TV reported.

When the fire began at about 2:30 a.m., many revelers were unable to find their way out in the chaos.

"It all happened so fast," survivor Taynne Vendrusculo told GloboNews TV. "Both the panic and the fire spread rapidly, in seconds."

Once security guards realized the building was on fire, they tried in vain to control the blaze with a fire extinguisher, according to a televised interview with one of the guards, Rodrigo Moura. He said patrons were trampled as they rushed for the doors, describing it as "a horror film."

Band member Rodrigo Martins said the fire started after the fourth or fifth song and the extinguisher did not work.

"It could have been a short circuit, there were many cables there," Martins told Porto Alegre's Radio Gaucha station. He said there was only one door and it was locked. A band member died in the fire.

CELL PHONES STILL RINGING

TV footage showed people sobbing outside the club before dawn, while shirtless firefighters used sledge hammers and axes to knock down an exterior wall to open up an exit.

Rescue officials moved the bodies to the local gym and separated them by gender. Male victims were easier to identify because most had identification on them, unlike the women, whose purses were left scattered in the devastated nightclub.

Piles of shoes remained in the burnt-out club, along with tufts of hair pulled out by people fleeing desperately. Firemen who removed bodies said victims' cell phones were still ringing.

The disaster recalls other incidents including a 2003 fire at a nightclub in West Warwick, Rhode Island, that killed 100 people, and a Buenos Aires nightclub blaze in 2004 that killed nearly 200. In both incidents, a band or members of the audience ignited fires that set the establishment ablaze.

The Rhode Island fire shocked local and federal officials because of the rarity of such incidents in the United States, where enforcement of safety codes is considered relatively strict. After the Buenos Aires blaze, Argentine officials closed many nightclubs and other venues and ultimately forced the city's mayor from office because of poor oversight of municipal codes.

The fire early on Sunday occurred in one of the wealthiest, most industrious and culturally distinct regions of Brazil. Santa Maria is about 186 miles west of Porto Alegre, the capital of a state settled by Germans and other immigrants from northern Europe.

Local clichés paint the region as stricter and more organized than the rest of Brazil, where most residents are a mix descended from native tribes, Portuguese colonists, African slaves, and later influxes of immigrants from southern Europe.

Rio Grande do Sul state's health secretary, Ciro Simoni, said emergency medical supplies from all over the state were being sent to the scene. States from all over Brazil offered support, and messages of sympathy poured in from foreign leaders.

(Additional reporting by Guillermo Parra-Bernal, Gustavo Bonato, Jeferson Ribeiro, Eduardo Simões, Brian Winter and Guido Nejamkis.; Writing by Paulo Prada and Anthony Boadle; Editing by Todd Benson, Kieran Murray and Christopher Wilson)

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Egypt's leader declares emergency after clashes kill dozens

CAIRO (Reuters) - Egyptian President Mohamed Mursi declared a month-long state of emergency in three cities on the Suez Canal, where dozens of people have been killed in protests that have swept the nation and deepened a political crisis facing the Islamist leader.

Hundreds of demonstrators in Port Said, Suez and Ismailia turned out against the decision within moments of Mursi's announcement late on Sunday that came after the death toll from protests and violence that erupted last week hit 49 people.

Most deaths were in Port Said, where 40 people were killed in just two days. Riots were sparked on Saturday when a court sentenced to death several people from the city in a case of deadly soccer violence last year. Mourners at Sunday's funerals in the port, where guns are common, turned their rage on Mursi.

The violence in Egyptian cities has now extended to a fifth day. Police again fired volleys of teargas at dozens of youths hurling stones early on Sunday near Cairo's Tahrir Square, where opponents have camped for weeks to protest against Mursi, who they say betrayed the revolution that overthrew Hosni Mubarak two years ago.

"We want to bring down the regime and end the state that is run by the Muslim Brotherhood," said Ibrahim Eissa, a 26-year-old cook, protecting his face from teargas wafting towards him from police lines near Tahrir, the cauldron of the 2011 revolt.

Propelled to power in a June election by the Brotherhood, Mursi's presidency has lurched through a series of political crises and violent demonstrations, compounding his task of shoring up a teetering economy and preparing for a parliamentary election to cement the new democracy in a few months.

"The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said, offering condolences to families of victims in the canal zone cities.

Appealing to his opponents, the president called for a national dialogue on Monday at 6 p.m. (1600 GMT), inviting a range of Islamist allies as well as liberal, leftist and other opposition groups and individuals to discuss the crisis.

"WASTE OF TIME"

The main opposition National Salvation Front coalition said it would meet on Monday to discuss the offer. But some opponents have already suggested they do not expect much from the gathering, raising the prospect of poor attendance.

"Unless the president takes responsibility for the bloody events and pledges to form a government of national salvation and a balanced committee to amend the constitution, any dialogue will be a waste of time," Mohamed ElBaradei, a prominent politician who founded the Constitution Party, wrote on Twitter.

Hamdeen Sabahy, a firebrand leftist politician and presidential candidate who is another leading member of the Front, said he would not attend Monday's meeting "unless the bloodshed stops and the people's demands are met."

The response highlights Egypt's deeply polarized politics. Although Islamists have swept to victory in a parliamentary poll and presidential vote, the disparate opposition has been united by Mursi's bid late last year to expand is powers and fast-track a constitution with an Islamist hue through a referendum.

Mursi's opponents accuse him of listening only to his Islamist friends and reneging on a pledge to be a president for all Egyptians. Islamists say their rivals want to overthrow by undemocratic means Egypt's first freely elected leader.

The Front has distanced itself from the latest flare-ups but said Mursi should have acted far sooner to impose extra security measures that would have ended the violence and laid the blame for the escalation squarely on Mursi's shoulders.

"Of course we feel the president is missing the real problem on the ground, which is his own polices," spokesman Khaled Dawoud said. "His call to implement emergency law was an expected move given what is going on, namely thuggery and criminal actions."

ANGER

Even in Tahrir Square, some protesters said the violence and the death toll in Port Said and other cities along the strategic international waterway meant there was little choice but to impose emergency law, though they, too, said the violence was Mursi's fault.

"They needed the state of emergency there because there is so much anger," said Mohamed Ahmed, 27, a protester walking briskly from a cloud of teargas spreading into Tahrir Square.

But activists in the three cities affected have pledged to defy the curfew that will start at 9 p.m. (1900 GMT) each evening and will last until 6 a.m. (0400 GMT).

Some opposition groups have also called for more protests on Monday, which marks the second anniversary of one of the bloodiest days in the revolution that erupted on January 25, 2011, and brought an end to Mubarak's iron rule 18 days later.

Rights activists also said Mursi's declaration was a backward step for Egypt, which was under emergency law for Mubarak's entire 30-year rule. His police used the sweeping arrest provisions to muzzle dissent and round up opponents, including members of the Brotherhood and even Mursi himself.

Heba Morayef of Human Rights Watch in Cairo said the police, still hated by many Egyptians for their heavy-handed tactics under Mubarak, would once again have the right to arrest people "purely because they look suspicious", undermining efforts to create a more efficient and respected police force.

"It is a classic knee-jerk reaction to think the emergency law will help bring security," she said. "It gives so much discretion to the Ministry of Interior that it ends up causing more abuse, which in turn causes more anger."

(Additional reporting by Shaimaa Fayed in Cairo and Yusri Mohamed in Ismailia; Editing by Will Waterman)

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Scores hurt as Islamists take to Bangladesh streets over tribunal

DHAKA (Reuters) - At least 50 people including policemen were injured in Bangladesh on Monday as Islamist activists protested against the prosecution of their leaders on charges stemming from a war of independence 40 years ago, police and witnesses said.

Protesters set off crude explosives and threw bricks at police who tried to disperse them with teargas, batons and some shots in the air, witnesses said.

"The Islamists vandalized dozens of vehicles and set fire to two buses in Motijheel commercial area and other places in the city," a police officer said.

Islamist party spokesman were not available for comment.

Police detained about 20 activists, reporters on the scene said, and the disturbances disrupted traffic on city-centre roads. Similar protests broke out in the northern town of Rajshahi and in Chittagong in the southeast.

Bangladesh became part of Pakistan at the end of British rule in 1947 but it broke away from Pakistan in 1971 after a war between Bangladeshi nationalists, who were backed by India, and Pakistani forces.

Some factions in Bangladesh opposed the break with Pakistan.

A Bangladeshi war crimes tribunal began work in mid-2011 to investigate some of the violence during the nine-month war when up to three million people were killed and thousands of women were raped.

Last week, the tribunal reached its first verdict, sentencing a former member of the Jamaat-e-Islami party and a popular Islamic preacher, Abul Kalam Azad, to death in absentia.

Azad has been missing since April last year but the government says it is trying to find him.

Azad was charged with collaborating with Pakistani forces in the murder of Hindus, a minority in the majority-Muslim state. In one case, he was accused of killing at least 12 Hindus while shooting indiscriminately along with Pakistani soldiers.

Jamaat has been accused of helping the Pakistani army in acts of violence, which it denies.

Another 11 people, nine of them Jamaat leaders, are facing trial.

Over the last few months Jamaat activists and members of its student wing have launched violent protests in Dhaka and other cities, demanding an end to the trials.

Human Rights Watch has said the law under which the accused were being tried fell short of international standards of due process. It cited defense lawyers, witnesses and investigators as saying they had been threatened during the trial.

The ruling party of Prime Minister Sheikh Hasina, who set up the tribunal, has denied the accusations of bias.

(Reporting by Anis Ahmed and Ruma Paul; Editing by Robert Birsel)

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Iran denies explosion at underground uranium facility

DUBAI (Reuters) - Iran has denied media reports of a major explosion at one of its uranium enrichment sites, describing them as "Western propaganda" designed to influence upcoming nuclear negotiations.

Reuters has been unable to verify reports since Friday of an explosion at the underground Fordow bunker, near the religious city of Qom, that some Israeli and Western media have said caused significant damage.

Tehran has accused Israel and the United States of being behind cyber attacks and the assassination of its nuclear scientists, aiming to sabotage a nuclear program which the West suspects hides an attempt to develop nuclear weapons.

"The false news of an explosion at Fordow is Western propaganda ahead of nuclear negotiations to influence their process and outcome," state news agency IRNA quoted the deputy head of Iran's Atomic Energy Organisation, Saeed Shamseddin Bar Broudi, as saying late on Sunday.

The IRNA report also quoted the head of parliament's national security and foreign affairs committee, Alaeddin Boroujerdi, strongly denying there had been an explosion.

The plant at Fordow in late 2011 began producing uranium enriched to 20 percent fissile purity, compared with the 3.5 percent level needed for nuclear energy plants, and has been operating 700 centrifuges there since January this year, according to Western diplomats.

Western governments are concerned that high-grade enrichment is a significant step towards developing a nuclear weapons capability.

Iran maintains its nuclear activities are entirely peaceful and that it began producing high-enriched uranium that it was no longer able to obtain from abroad for medical use.

The two sides are set to resume negotiations in coming weeks but the talks have been beset by delays and wrangling over dates and location.

(Reporting by Marcus George; editing by Patrick Graham)

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French, Malian forces capture Gao rebel stronghold

KONNA, Mali/PARIS (Reuters) - French and Malian forces fighting Islamist rebels took control on Saturday of the rebel bastion of Gao, the biggest military success so far in an offensive against al Qaeda-allied insurgents occupying the country's north.

The United States and Europe back the U.N.-mandated Mali operation as a counterstrike against the threat of Islamist jihadists using the West African state's inhospitable Sahara desert as a launching pad for international attacks.

In an overnight assault on Gao backed by French warplanes and helicopters, French special forces seized the town's airport and a key bridge over the River Niger, killing an estimated dozen Islamist fighters without suffering any losses or injuries, the French army said.

"The Malian army and the French control Gao today," Malian army spokesman Lieutenant Diaran Kone told Reuters.

The speed of the French action in a two-week-old campaign suggested French and Malian government troops intended to drive aggressively into the north of Mali in the next few days against other Islamist rebel strongholds, such as Timbuktu and Kidal.

There have been 30 French air strikes on militant targets around Gao and Timbuktu in the past 36 hours.

News that the French and Malian troops were at Gao, the largest northern town held by the Islamists, came as African states struggled to deploy their intervention force in Mali, known as AFISMA, under a U.N. mandate.

Regional army chiefs said on Saturday that a total of 7,700 African soldiers would be dispatched, up from 5,700.

Liberia, Guinea-Bissau, Burundi, Guinea and Uganda are due to join the mission, but it was not clear if progress had been made at meetings in Abidjan or Addis Ababa to overcome gaps in transport, equipment and financing.

French army spokesman Colonel Thierry Burkhard said French forces had come under fire from rebel fighters inside Gao, but that both the bridge and airport runway were undamaged.

In Paris, the French Defense Ministry said Malian and French troop reinforcements were brought in and that soldiers from Chad and Niger, who have experience in desert warfare, were also flown in.

Those Malian and regional troops would have the task of securing Gao and its surrounding area, the ministry said.

To the west, French forces recaptured Lere, on the road to Timbuktu, and were advancing, a Malian military source said, asking not be named.

For two weeks, French jets and helicopter gunships have been harrying the retreating Islamists, attacking their vehicles, command posts and weapons depots. The French action had stymied a sudden Islamist offensive launched in early January that had threatened Bamako, Mali's capital in the south of the country.

Reacting to the French-led offensive, one of the leaders of the alliance of Islamist groups occupying Mali's north promised resistance to what he called the "new Crusader aggression", in comments published by Al Jazeera's Arabic website.

Yahya Abu Al-Hamman, leader in the Sahel of al Qaeda's North African wing AQIM, which along with Malian militant group Ansar Dine and AQIM splinter MUJWA occupies Mali's north, said a "Jihadist Islamist emirate" would be created in the territory.

Washington and European governments, while providing airlift and intelligence support to the anti-militant offensive in Mali, are not planning to send in any combat troops.

U.S. Defense Secretary Leon Panetta in a call on Saturday with his French counterpart, Jean-Yves Le Drian, commended France's "strong leadership" in the effort and said the U.S. Africa Command would support the French military by conducting aerial refueling missions.

They also discussed plans for the United States to transport troops from African nations, including Chad and Togo, to support the international effort in Mali, Pentagon spokesman George Little said.

FRANCE TAKING THE LEAD

At an African Union summit in Addis Ababa, AU leaders called on the United Nations to provide emergency logistics and funding to allow the African force for Mali to deploy.

AU officials say AFISMA is severely hampered by logistical shortages and needs airlift support, ammunition, telecoms equipment, field hospitals, food and water.

There appeared to be some embarrassment among African ministers and leaders that the continent was having to rely on a former colonial power, France, much criticized for past meddling in Africa, to take the lead in the military campaign in Mali.

Rwandan Foreign Minister Louise Mushikiwabo said France's intervention was "justified".

"If Africa can't do it, somebody else should do it," Mushikiwabo told reporters on the sidelines of the summit.

France, which dispatched its military to Mali at the Bamako government's request, already has 2,500 soldiers on the ground in its former colony.

About 1,900 African troops, including Chadians, have been deployed to Mali so far. Burkina Faso, Benin, Nigeria, Senegal, Togo, Niger and Chad are providing troops while Burundi and other African nations have pledged to contribute.

While the French and Malians thrust northeast in a two-pronged offensive towards Gao and Timbuktu, Chadian and local forces in neighboring Niger are preparing a flanking thrust coming up from the south.

FRANCE: 'LOT OF WORK' AHEAD

Malian army officers said the Islamist insurgents had pulled back to avoid deadly French air strikes.

"They are all hiding. They are leaving on foot and on motorcycles," Malian Army Captain Faran Keita told Reuters at Konna, about 500 km (310 miles) southeast of Gao.

Konna's capture by the Islamist insurgents on January 10 triggered the sudden French military intervention. Reporters there saw charred rebel pickup trucks that had been blasted by French air strikes. Munitions lay scattered about.

The question remained whether the Islamists would fight to hold Gao and Timbuktu or withdraw farther north into the trackless desert wastes and mountain fastnesses of the Sahara.

"France can expel rebels from certain of the key towns, but it cannot occupy and control the entire north Mali. North Mali is the size of France," Jakkie Cilliers, executive director of the Pretoria-based Institute for Security Studies, told Reuters.

On a visit to Chile, French Prime Minister Jean-Marc Ayrault admitted French forces in Mali still faced "a lot of work".

On Friday, the Islamists blew up a road bridge on the main road south from Gao to Niger, but military officials from Niger said the Chadian and Nigerien forces could still reach Gao by other routes when they advanced.

The AU is expected to seek hundreds of millions of dollars in logistical support and funding at a conference of donors for the Mali operation to be held in Addis Ababa on January 29.

(Additional reporting by James Regan in Paris, Tiemoko Diallo in Bamako, Richard Lough and Aaron Maasho in Addis Ababa, Ange Aboa in Abidjan, Alexandra Ulmer in Santiago, Sami Aboudi in Dubai, David Lewis and Pascal Fletcher in Dakar, and David Alexander in Washington; Writing by Pascal Fletcher; Editing by David Lewis, Jason Webb and Peter Cooney)

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Third bomb attack in 24 hours kills eight Afghan police

KABUL (Reuters) - A roadside bomb killed eight policemen in Afghanistan's volatile southern province of Kandahar, police said on Sunday, the third deadly attack by insurgents against police in 24 hours.

Twenty police have been killed across Afghanistan since midday on Saturday, a level of violence that underlines concern over how the 350,000-strong Afghan security forces will manage once most NATO-led troops withdraw by the end of next year.

In the latest attack, the police in Kandahar had just finished defusing a roadside bomb and had arrested three men suspected of being Taliban insurgents when the blast occurred late on Saturday.

"As they were leaving the area another bomb went off near their vehicle, killing eight policemen and two suspects," said Kandahar Police Chief Abdul Raziq.

Six police and a third Taliban suspect were wounded.

That blast came hours after 10 police officers, including the provincial counter-terrorism chief, were killed in an attack in northern Kunduz province. Another two police were killed in a bombing in eastern Ghazni province.

Eleven years into the NATO-led war against Taliban insurgents, violence has been increasing against Afghan security forces, sparking concern that they will not be able to take over all security responsibilities by the middle of this year.

(Reporting By Hamid Shalizi; Writing by Dylan Welch; Editing by Amie Ferris-Rotman and Paul Tait)

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