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KABUL — A crew of suicide bombers armed with grenades and Kalashnikov rifles attacked two guesthouses frequented by foreigners here early Friday, setting off a gun battle with Afghan police and killing at least 16 people.

The Taliban asserted responsibility for the dramatic raid in central Kabul, which began around daybreak and wounded at least 38 people. The assault was the latest in a string of attacks to rock the Afghan capital, whose residents generally feel a world away from the raging rural insurgency that thousands of U.S.-led troops are seeking to contain in a new push in southern Afghanistan.

The attack further eroded the sense of security in the capital, challenging the government of President Hamid Karzai. It came about five weeks after a similar commando-style assault on a shopping center near the presidential palace and a large hotel.

“If we have security, why do we have this kind of drama?” asked Ahmad Haji Zada, 22, as he surveyed the damage to his mangled building-materials store, about a block from the two small hotels. “How is it possible for them to get into the city?”

The siege also seemed sure to raise tensions between two of Afghanistan’s neighbors, India and Pakistan, longtime foes whose foreign secretaries resumed peace talks Thursday in New Delhi. Indian and Afghan government statements said many guests in the facilities bombed Friday were Indian citizens, suggesting they were the targets.

Pakistan opposes India’s rising influence in Afghanistan, and U.S. and Indian officials have accused Pakistan’s military intelligence service of collaborating with Afghan militants to bomb the Indian Embassy in Kabul in 2008. Pakistan has denied the allegation.

Friday’s attack began when a driver detonated an explosives-packed van outside the Aria guesthouse, leaving a swimming-pool-size crater. A second bomber then blew himself up inside the building, said Zamaray Bashari, spokesman for the Afghan Interior Ministry.

Two other bombers entered another nearby guesthouse, the Park Residence, which is adjacent to a large, four-star hotel and the city’s biggest shopping center. There, one bomber detonated his explosives and the other hid as green-uniformed Afghan security forces descended and a firefight ensued. Police officers killed the final bomber about four hours after the attack began, said Abdul Ghafar Sayed Zada, head of criminal investigations for the city police.

After the standoff ended, police carried out bodies swathed in floral blankets from the Park Residence, their boots crunching layers of shattered window glass. Bashari said three police officers were killed, while Karzai’s office said the dead included eight Afghans, one Italian and four Indians.

India’s Foreign Ministry said in a statement that nine Indians had been killed, including government officials. The statement said the attack was meant to disturb the nation’s relationship with Afghanistan, where India has spent $1.5 billion over the past eight years — its largest-ever aid package.

“We are still digging through the rubble. It’s been a terrible day,” an Indian government official said. “It certainly appears Indians were targeted.”

Karzai condemned the attack in a statement, saying it would “not undermine our relationship with India.”

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Afghan civilians will today begin to pour into the district cleared by British troops in a pivotal phase of the operation to banish the Taleban.

Teachers and civil servants, together with foreign engineers, will begin to try to cement the military gains of Operation Moshtarak by winning the trust of locals.

Over the coming weeks, thousands of farmers will be given alfalfa seed, maize and summer vegetables to help them to move away from poppy growing. Local government will set up bases in villages that have not seen an official for decades.

The moves will be signalled today by Gulab Mangal, the Governor of Helmand province, as he announces the end of the military offensive in Nad Ali district and the beginning of the civilian phase to follow it.

Afghan civilians will today begin to pour into the district cleared by British troops in a pivotal phase of the operation to banish the Taleban.

Teachers and civil servants, together with foreign engineers, will begin to try to cement the military gains of Operation Moshtarak by winning the trust of locals.

Over the coming weeks, thousands of farmers will be given alfalfa seed, maize and summer vegetables to help them to move away from poppy growing. Local government will set up bases in villages that have not seen an official for decades.

The moves will be signalled today by Gulab Mangal, the Governor of Helmand province, as he announces the end of the military offensive in Nad Ali district and the beginning of the civilian phase to follow it.

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Most civil servants working at the heart of Gordon Brown’s Government are afraid to challenge the way Downing Street is run, it emerged last night.

Despite claims of a “zero-tolerance” attitude to bullying, an internal survey of Cabinet Office staff seen by The Times shows that a third want to leave, and 6 per cent want to quit “as soon as possible”. Less than half of staff said that they felt it was safe to speak up.

As the battle over bullying allegations levelled at the Prime Minister continued, it emerged that Whitehall’s most senior civil servant warned Mr Brown about the conduct of the former adviser Damian McBride.

Lord Mandelson, the Business Secretary, insisted that nobody at No 10 would endure bullying as he defended the Prime Minister from allegations over his behaviour towards staff.

But while Sir Gus O’Donnell, the Cabinet Secretary, denied that he had reprimanded Mr Brown, it emerged that he did raise concerns about the conduct of Mr McBride, his former spin doctor. The concerns were raised both when Mr Brown was Chancellor and after he moved to No 10 in 2007. Sir Gus was Permanent Secretary of the Treasury until 2005 before transferring to the Cabinet office.

He is understood to have thought that Mr McBride went over the top in attacking Labour ministers. A Cabinet Office spokesman said: “We are not going to comment on matters relating to individual employees, or any private conversations. . . that may or may not have taken place.”

David Cameron, the Tory leader, demanded an investigation into what he said were “very serious matters”. Nick Clegg, the Liberal Democrat leader, said that the allegations of bullying should be cleared up by No 10.

Mr Brown said: “The Cabinet Secretary has made it clear that he’s had no inquiries, there’s been no reprimand, there’s been no private message to me. . . [the] story is completely wrong.”

On a day of intense scrutiny of the allegations and those making them: four patrons of the National Bullying Helpline quit in protest at “breaches of confidentiality” by Christine Pratt, its chief executive; staff in No 10 with grievances were urged to come forward by Sir Jeremy Heywood, the Downing Street Permanent Secretary; and Jonathan Baume, head of the senior civil servants’ union, said that politicians often had little idea of acceptable workplace behaviour and that civil servants had to “grin and bear it”.

The employee survey found that bullying or harrassment was reported by 7 per cent of the Cabinet Office’s 1,270 staff. A Downing Street spokesman said this was below the Civil Service average. Just 23 per cent said that change was managed well and only 47 per cent agreed with the statement: “I think that it safe to challenge the way things are done in the Cabinet Office.”

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In announcing the long-awaited iPad Wednesday, Apple released in beta the software development kit needed to build applications for the tablet computer.
The SDK is an upgrade of the current iPhone SDK, beefed up with tools for developing on the iPad. The device, which looks like a very large iPhone, was introduced in San Francisco during a news conference led by chief executive and Apple co-founder Steve Jobs.

The iPhone SDK 3.2 beta is only available for download from Apple’s site to members of the iPhone Developer Program. The kit includes software tools for developing apps for the iPhone operating system used in both devices, as well as an iPad simulator.

The simulator, which runs on a Mac with OS X v10.6.2 or later, lets developers lay out their application’s user interface for the iPad’s 10-inch multi-touch display. In addition, the tool can be used to test an application’s memory usage and to shorten the debug cycle in the design process.

Other components of the SDK include an iPad programming guide, as well as guidelines for designing UIs that take advantage of the new views and controls available in the new product. The SDK also includes sample code and documentation for building “universal applications” for the iPad, iPhone and iPod Touch.

The iPhone Developer Program costs $99 per year for the standard membership and $299 for the enterprise membership. The latter program is for companies creating proprietary in-house applications. The membership is aimed at companies with 500 or more employees.

The iPad, which is scheduled to be released in late March, is powered by a system-on-a-chip designed by Apple. The SoC, called A4, helps in boosting the battery life of the product to up to 10 hours, according to Apple.

The Wi-Fi-only iPad will have a starting price of $499. A Wi-Fi and 3G model, which is scheduled to be available in April, will have a starting price of $629. Nearly all of the 140,000 iPhone applications available in Apple’s App Store will also run on the iPad, according to Apple.

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U.S. President Barack Obama is calling for major banks to reduce their risk taking and investors in financial stocks are clearly alarmed. Goldman Sachs Group Inc (GS.N) shares have fallen more than 7 percent since Wednesday, before the proposal was leaked, and JPMorgan Chase & Co (JPM.N) shares have fallen more than 9 percent.

Banks account for 5 percent of investors in U.S. private equity funds by number and represent 9 percent of the capital invested, data from London research firm Preqin show. The lion’s share of that number is capital managed on behalf of clients rather than invested from banks’ own balance sheets.

“For most of the investment banks, the main benefits of having private equity programs probably comes less from the extraordinary returns they’ve got, and more from the fact it opened the door to getting clients from private equity groups,” said Josh Lerner, a Harvard Business School professor specializing in private equity.

While banks are relatively small direct investors in hedge funds, representing 0.9 percent, for some big banks, their internal hedge funds and private equity investments provide crucial trading, underwriting, and advisory revenue.

Sanford C. Bernstein analyst Brad Hintz calculates that every $1 invested by a securities firm into its own merchant banking fund, can add up to another 47 cents of transaction revenue and investment gains over time.

The banks that would suffer most from such limitations are Goldman Sachs (GS.N), Morgan Stanley (MS.N), JPMorgan Chase (JPM.N), and Bank of America (BAC.N), Hintz said.

Overall, commercial banks could suffer the most from the proposals, Hintz said, assuming that the law ends up separating commercial banking businesses from investment banking ones.

“There’s a real concern for the commercial banks,” Hintz said.

Banks are likely to spin private equity businesses off to shareholders rather than trying to sell them off piecemeal, experts said.

“I think we’ll see controlled spin-outs rather than dumping assets,” said Lerner.

A Goldman Sachs spokeswoman declined to comment on the White House plan for banks and what it might mean for private equity and hedge fund units. A spokeswoman for JPMorgan Chase was not immediately available for comment.

Morgan Stanley was not immediately available for comment.

Bank of America said it does not operate a hedge fund. It does operate BAML Capital Partners, a private equity business, and a proprietary trading unit. Analysts said those units could be affected.

Proprietary trading accounts for less than 1 percent of total revenue, a spokesman for Bank of America said.

THE DEVIL YOU KNOW

Banks have for several years been reducing private equity investments, said David de Weese, partner at specialist secondary firm Paul Capital, and that will likely continue as it remains hard to strike leveraged buyout deals of significant size.

In addition, the Basel II accords which came into force in Europe and Japan last year and are to take effect in the United States by 2012 boost the amount of capital that banks have to hold against their private equity investments, making holding on to these assets much more costly, he added.

Industry executives expect that banks would be able to keep their so-called hedge funds of funds operations where the institutions essentially operate as middlemen in helping their clients invest with hedge funds.

Hedge fund units, including so-called funds of funds units, have been lucrative for both asset managers like Legg Mason and for many banks.

JP Morgan Chase’s Highbridge Capital Management LLP invests $21 billion in its flagship multi-strategy hedge fund, single strategy hedge funds, retail-oriented products and longer duration principal strategy/private equity-like portfolios on behalf of wealthy clients.

Banks like JP Morgan would be able to keep these units and only have to pull out their own money if any is invested. In-house hedge funds where a lot of the firm’s money is invested, however, would be more problematic, observers say.

“The most likely outcome is that funds currently owned by banks will be spun off as independent entities,” said Kenneth Heinz, President of industry tracking group Hedge Fund Research.

But putting this legislation together will be a long process, and the outcome is anything but certain, analysts cautioned.

“The devil’s in the details on this,” said Paul Miller, analyst, FBR Capital Markets. “There’s a potential for a big impact on banks, and there’s a potential for almost no impact at all, but it adds a layer of uncertainty to their operations.”

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ISLAMABAD — Defense Secretary Robert M. Gates made an unannounced visit to the Pakistani capital Thursday to reassure a skittish ally about the Obama administration’s revised war strategy in Afghanistan as well as its long-term commitment to Pakistan.

Gates, making his first trip to this country in three years, said he would try to convince Pakistani military and civilian leaders that they need to crack down on all factions of the Taliban, al-Qaeda and other jihadi groups. For years, Pakistan has been reluctant to take action against fighters crossing into Afghanistan and India as long as the fighters don’t cause trouble domestically.

“The reality [is] that you can’t ignore one part of this cancer and pretend it that won’t have some impact closer to home,” he told reporters. “We have common enemies on both sides of the border. We are interested in an even closer working relationship with the Pakistanis to go after these common enemies.”

Gates is the latest in a parade of senior U.S. officials to travel to Islamabad to cajole the Pakistanis into taking firmer control of territory bordering Afghanistan while also trying to dispel suspicions and concerns about U.S. policy in the turbulent region.

Some Pakistani officials have criticized Obama’s plan to send 30,000 extra troops to Afghanistan as an unnecessary expansion of the war. At the same time, however, Pakistan has expressed anxiety about Obama’s pledge to begin withdrawing forces in July 2011, raising fears that the United States will eventually abandon the region altogether.

In an op-ed published in The News, a leading Pakistani daily, Gates admitted that the United States had made “a grave mistake” in the early 1990s by cutting defense ties with Pakistan and losing interest in the region after running a successful covert war to drive the Soviet Union out of Afghanistan. Gates served as CIA director from 1991 to 1993 and was a key shaper of Washington’s Afghan policy during the Cold War.

Gates was scheduled to meet with President Asif Ali Zardari and Prime Minister Yousaf Raza Gillani during his visit, as well as the country’s powerful military leaders, including chief of staff Gen. Ashfaq Kiyani.

Speaking to reporters shortly before his arrival in Islamabad, Gates said he was pleased with the results of a three-month-long Pakistani military offensive in South Waziristan, a remote tribal agency along the Afghan border that had served for years as a base for Taliban and foreign fighters.

U.S. officials have pressed Pakistan to expand the operation into neighboring North Waziristan, a suspected haven for al-Qaeda leaders as well as the Haqqani network, a Taliban faction that has organized many high-profile attacks on U.S. forces in Afghanistan. The Pakistani military, which has a long-standing covert relationship with the Haqqani network, has resisted.

Maj. Gen. Athar Abbas, Pakistan’s chief military spokesman, said the army had no plans to move into North Waziristan. He said the military would risk jeopardizing its gains in South Waziristan if it did so.

“You completely destabilize the area if you push forward and expand,” he said Thursday in a meeting with U.S. reporters. “At present, we are not into position to get into an overstretch.”

Abbas acknowledged that leaders of the Haqqani network have a base in North Waziristan but said they spend at least half of their time across the border in Afghanistan. “Why hasn’t the U.S. been able to detect Haqqani and target him there?” he asked.

Gates said he would raise concerns in his meetings with Pakistani officials about “manifestations of anti-Americanism,” including reported harassment of U.S. citizens in the country and a clampdown on visas.

Pakistan’s government, in turn, has complained about a massive expansion of the U.S. embassy and an influx of defense and aid workers. The Pakistani media have also fanned popular opposition to the increased U.S. presence.

Another reason for the surge in anti-Americanism is an increase in missile strikes on Pakistani territory by unmanned CIA-operated drones. There have been a dozen drone attacks since Dec. 30, when a suicide bomber killed eight people at a CIA base in eastern Afghanistan.

The missile strikes have caused many civilian casualties, fueling widespread public anger. The Pakistani government officially protests the drone attacks as an infringement of its sovereignty but in practice turns a blind eye.
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The dispute comes after the deputy minister, Danny Ayalon, summoned the ambassador, Oguz Celikkolits, to rebuke him over a TV series.

He then ensured the ambassador was seated on a lower chair and removed the Turkish flag from the table.

In an attempt to defuse the row, Mr Ayalon said disrespect “is not my way”.

He said in future he would behave “in a diplomatically acceptable manner”.

But Turkey has demanded a formal apology from Israel.

“Unless they make up for it by this evening, our ambassador will return on the first plane tomorrow,” President Abdullah Gul was quoted as saying by the NTV news channel.

‘Repeated provocation’

Footage of Mr Ayalon urging journalists to make clear the ambassador was seated on a low sofa, while the Israeli officials were in much higher chairs, has been widely broadcast by the Israeli media.

He is also heard pointing out in Hebrew that “there is only one flag” and “we are not smiling”. In an interview with Israel’s Army Radio on Tuesday, Mr Ayalon was unapologetic.

“In terms of the diplomatic tactics available, this was the minimum that was warranted given the repeated provocation by political and other players in Turkey,” he said, according to Reuters.

One Israeli newspaper marked the height difference on the photo, and captioned it “the height of humiliation”.

The meeting with Mr Celikkol had been called to discuss the fictional television series Valley of the Wolves, popular in Turkey.

It depicts Israeli intelligence operatives kidnapping babies and converting them to Judaism.

Last October Israel complained over another Turkish series, which depicted Israeli soldiers killing Palestinians. In one clip, an Israeli soldier shoots dead a smiling young girl at close range.

The row comes ahead of a planned visit by Israeli Defence Minister Ehud Barak to Turkey on Sunday.

Rocket fire

BBC diplomatic correspondent Jonathan Marcus says Israel is alarmed by what it sees as Turkey’s increasing efforts to develop closer ties in the Arab world, which “inevitably raise questions about Ankara’s long-standing and once close relationship with Israel”.

Turkey has long been an ally of Israel, but relations have deteriorated as Ankara has repeatedly criticised Israel for its offensive in Gaza a year ago.

Rights groups say about 1,400 Palestinians died during the operation, which Israel said had been aimed at ending rocket fire by Hamas.

Thirteen Israelis died during the violence.

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Reporting from Tehran and Beirut – A powerful bomb blast killed one of Iran’s leading nuclear scientists this morning in a quiet northern Tehran neighborhood as he was leaving home for work, officials said.

Massoud Ali-Mohammadi, 50, was described by colleagues as a respected Tehran University nuclear physicist. Reformist websites and two students also described him as an outspoken supporter of opposition figure Mir-Hossein Mousavi.

Hard-line Iranian officials immediately blamed Israel and the West for the assassination, which came at a time of heightened tension over Iran’s nuclear program.

State television described Ali-Mohammadi as a “revolutionary university professor martyred in a terrorist operation by counterrevolutionary agents affiliated” with the West.

“Considering the kind of attack and previous threats by security and terrorist services close to America and the Zionist regime, probably this terrorist attack was sponsored by those services,” said a report on the news website Tabnak.

The West and Israel have vowed to prevent Iran from obtaining nuclear-weapons capability. Iran’s top diplomat last month accused the United States and Saudi Arabia of kidnapping nuclear scientist Shahram Amiri, who worked for Iran’s Atomic Energy Organization and disappeared during a summer religious pilgrimage to Saudi Arabia.

But Iran is also in the grips of its greatest domestic crisis since the 1979 revolution, with political violence escalating.

Even Iran’s Supreme Leader Ali Khamenei demanded that pro-government vigilantes rein in their activities following the assassination of Mousavi’s nephew in December and an alleged attack on opposition figure Mehdi Karroubi last week.

Though hard-line news outlets described Ali-Mohammadi as a former member of the Revolutionary Guard, a stalwart supporter of the Islamic Republic and a loyalist to Khamenei, others contradicted that assessment.

Ali Moqari, president of the science department at Tehran University, told the Mehr news agency that Ali-Mohammadi “had no political activity.”

One student of nuclear physics told The Times she believed Ali-Mohammadi was killed because of his outspoken support for the student movement. Another said Ali-Mohammadi cut his ties with the Revolutionary Guard years ago and in recent months had been vocal in his opposition to the Islamic Republic.

“Since two months ago, he has been venting his frustration with almost everybody in the system,” said the student, who spoke on condition of anonymity. “He was openly criticizing high-ranking officials in classes.”

The reformist news websites Ayandenews and Rahesabz identified Ali-Mohammadi as among a list of scholars campaigning for Mousavi during his presidential run against President Mahmoud Ahmadinejad.

A graduate of Tehran’s Sharif University of Technology, Ali-Mohammadi began teaching quantum physics and electromagnetic theory at Tehran University in 1995. He has written books on nuclear science and advised PhD candidates on their dissertations.

Officials offered different scenarios of the bombing. Some said the bomb was attached to a motorcycle. Another said it was in a trash bin and set to detonate by remote control.

Neighbors said Ali-Mohammadi had lived for decades in an old bungalow set amid new multistory apartment buildings in a quiet, leafy neighborhood in northern Tehran.

Iranian news reports said he was leaving home for work when the explosion erupted. Witnesses said the 7:30 a.m. explosion shattered windows for 150 to 300 feet around.

“Most probably, the bomb had been fixed to the motorcycle outside Mr. Ali-Mohammadi’s house and exploded by remote control,” Fakhreddin Jaarzadeh, a Tehran prosecutor, told the Iranian Students News Agency.

Two people were reported injured and a car was set ablaze, witnesses and news reports said.

“I was shocked,” said one resident, who spoke on condition of anonymity. “I was at breakfast, and our glass breakfast table shattered.”

Police cordoned off the area as utility workers tried to restore downed power lines.

Iranian officials said forensic experts were conducting examinations but that no suspects had been arrested.
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Once again we confront the aspect of President Obama’s legacy that is the easiest to discern and the hardest to discuss.
He is, in fact, the nation’s first African-American president.

Harry Reid’s newly reported comment, from the 2008 campaign, that Obama could win because he was “light-skinned” and did not have a “Negro dialect” is only the latest flashpoint.

The man who would become Obama’s vice president, Joe Biden, apologized for 2007 comments calling the then-Illinois senator “articulate and bright and clean.”

Race provided the subtext for the campaign controversy over Obama minister Jeremiah Wright, and became the subject of a celebrated Obama speech that will studied by any historian who writes about him.

As president, Obama and his aides would just as soon not discuss race. But it can’t help but pop up, as in the famous “beer summit” with the black Harvard professor and the white Cambridge police officer.

And some White House allies, such as ex-president Jimmy Carter, suspect that race is behind some of the criticisms directed at Obama.

 
Conservatives, meanwhile, see a “double standard” applied to Democrats and Republicans when it comes to racially-tinged remarks. Some Republicans say Reid should step down, just as Trent Lott did after racially charged comments he made in 2002.

No to be outdone, indicted former Illinois Gov. Rod Blagojevich now says he’s “blacker than Barack Obama.” Go figure.

Rest assured that Reid’s remarks won’t be the last racial flap of the Obama presidency — and, really, how could it not?

Race has been a major subtext of most United States history, from slavery and the Civil War, to the civil rights movement and affirmative action — and, now, the Barack Obama presidency.

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