Senate Passes Tax Increases on Wealthy Americans

Drew Angerer/Getty Images

Senator Mitch McConnell, the Republican leader, was surrounded by reporters as he walked to his office late Monday.

WASHINGTON — The Senate, in a pre-dawn vote two hours after the deadline passed to avert automatic tax increases, overwhelmingly approved legislation on Tuesday that would allow tax rates to rise only on affluent Americans while temporarily suspending sweeping, across-the-board spending cuts.

The deal, worked out in furious negotiations between Vice President Joseph R. Biden Jr. and the Republican Senate leader, Mitch McConnell, passed 89 to 8, with just three Democrats and five Republicans voting no. Although it lost the support of some of the Senate’s most conservative members, the broad coalition that pushed the accord across the finish line could portend swift House passage as early as New Year’s Day.

Quick passage before the markets reopen on Wednesday would likely negate any economic damage from Tuesday’s breach of the so-called “fiscal cliff” and largely spare the nation’s economy from the one-two punch of large tax increases and across-the-board military and domestic spending cuts in the New Year.

“This shouldn’t be the model for how to do things around here,” Mr. McConnell said just after 1:30 a.m. “But I think we can say we’ve done some good for the country.”

Mr. Biden, after a late New Year’s Eve meeting with leery Senate Democrats to sell the accord, said: “You surely shouldn’t predict how the House is going to vote. But I feel very, very good.”

The eight senators who voted no included Marco Rubio, Republican of Florida and a potential presidential candidate in 2016, two of the Senate’s most ardent small-government Republicans, Rand Paul of Kentucky and Mike Lee of Utah, and Senator Charles E. Grassley of Iowa, who as a former Finance Committee chairman helped secure passage of the Bush-era tax cuts, then opposed making almost all of them permanent on Tuesday. Two moderate Democrats, Thomas R. Carper of Delaware and Michael Bennet of Colorado, also voted no, as did the liberal Democrat Tom Harkin, who said the White House had given away too much in the compromise. Senator Richard C. Shelby, Republican of Alabama, also voted no.

The House Speaker, John A. Boehner, and the Republican House leadership said the House would “honor its commitment to consider the Senate agreement.” But, they added, “decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members — and the American people — have been able to review the legislation.”

Even with that cautious assessment, Republican House aides said a vote Tuesday was possible.

Under the agreement, tax rates would jump to 39.6 percent from 35 percent for individual incomes over $400,000 and couples over $450,000, while tax deductions and credits would start phasing out on incomes as low as $250,000, a clear victory for President Obama, who ran for re-election vowing to impose taxes on the wealthy.

Just after the vote, Mr. Obama called for quick House passage of the legislation.

“While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay,” he said.

Democrats also secured a full year’s extension of unemployment insurance without strings attached and without offsetting spending cuts, a $30 billion cost. But the two-percentage point cut to the payroll tax that the president secured in late 2010 lapsed at midnight and will not be renewed.

In one final piece of the puzzle, negotiators agreed to put off $110 billion in across-the-board cuts to military and domestic programs for two months while broader deficit-reduction talks continue. Those cuts begin to go into force on Wednesday, and that deadline, too, might be missed before Congress approves the legislation.

To secure votes, Senator Harry Reid, the Senate Democratic leader, also told Democrats the legislation would cancel a pending Congressional pay raise — putting opponents in the politically difficult position of supporting a raise — and extend an expiring dairy policy that would have seen the price of milk double in some parts of the country.

The nature of the deal ensured that the running war between the White House and Congressional Republicans on spending and taxes would continue at least until the spring. Treasury Secretary Timothy F. Geithner formally notified Congress that the government reached its statutory borrowing limit on New Year’s Eve. Through some creative accounting tricks, the Treasury Department can put off action for perhaps two months, but Congress must act to keep the government from defaulting just when the “pause” on pending cuts is up. Then in late March, a law financing the government expires.

Jennifer Steinhauer and Robert Pear contributed reporting.

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Hispanic Pregnancies Fall in U.S. as Women Choose Smaller Families

ORLANDO, Fla. — Hispanic women in the United States, who have generally had the highest fertility rates in the country, are choosing to have fewer children. Both immigrant and native-born Latinas had steeper birthrate declines from 2007 to 2010 than other groups, including non-Hispanic whites, blacks and Asians, a drop some demographers and sociologists attribute to changes in the views of many Hispanic women about motherhood.

As a result, in 2011, the American birthrate hit a record low, with 63 births per 1,000 women ages 15 to 44, led by the decline in births to immigrant women. The national birthrate is now about half what it was during the baby boom years, when it peaked in 1957 at 122.7 births per 1,000 women of childbearing age.

The decline in birthrates was steepest among Mexican-American women and women who immigrated from Mexico, at 25.7 percent. This has reversed a trend in which immigrant mothers accounted for a rising share of births in the United States, according to a recent report by the Pew Research Center. In 2010, birthrates among all Hispanics reached their lowest level in 20 years, the center found.

The sudden drop-off, which coincided with the onset of the recession, suggests that attitudes have changed since the days when older generations of Latinos prized large families and more closely followed Roman Catholic teachings, which forbid artificial contraception.

Interviews with young Latinas, as well as reproductive health experts, show that the reasons for deciding to have fewer children are many, involving greater access to information about contraceptives and women’s health, as well as higher education.

When Marucci Guzman decided to marry Tom Beard here seven years ago, the idea of having a large family — a Guzman tradition back in Puerto Rico — was out of the question.

“We thought one, maybe two,” said Ms. Guzman Beard, who gave birth to a daughter, Attalai, four years ago.

Asked whether Attalai might ever get her wish for a little brother or sister, Ms. Guzman Beard, 29, a vice president at a public service organization, said: “I want to go to law school. I’m married. I work. When do I have time?”

The decisions were not made in a vacuum but amid a sputtering economy, which, interviewees said, weighed heavily on their minds.

Latinos suffered larger percentage declines in household wealth than white, black or Asian households from 2005 to 2009, and, according to the Pew report, their rates of poverty and unemployment also grew more sharply after the recession began.

Prolonged recessions do produce dips in the birthrate, but a drop as large as Latinos have experienced is atypical, said William H. Frey, a sociologist and demographer at the Brookings Institution. “It is surprising,” Mr. Frey said. “When you hear about a decrease in the birthrate, you don’t expect Latinos to be at the forefront of the trend.”

D’Vera Cohn, a senior writer at the Pew Research Center and an author of the report, said that in past recessions, when overall fertility dipped, “it bounced back over time when the economy got better.”

“If history repeats itself, that will happen again,” she said.

But to Mr. Frey, the decrease has signaled much about the aspirations of young Latinos to become full and permanent members of the upwardly mobile middle class, despite the challenges posed by the struggling economy.

Jersey Garcia, a 37-year-old public health worker in Miami, is in the first generation of her family to live permanently outside of the Dominican Republic, where her maternal and paternal grandmothers had a total of 27 children.

“I have two right now,” Ms. Garcia said. “It’s just a good number that I can handle.”

“Before, I probably would have been pressured to have more,” she added. “I think living in the United States, I don’t have family members close by to help me, and it takes a village to raise a child. So the feeling is, keep what you have right now.”

But that has not been easy. Even with health insurance, Ms. Garcia’s preferred method of long-term birth control, an IUD, has been unaffordable. Birth control pills, too, with a $50 co-payment a month, were too costly for her budget. “I couldn’t afford it,” she said. “So what I’ve been doing is condoms.”

According to research by the National Latina Institute for Reproductive Health, the overwhelming majority of Latinas have used contraception at some point in their lives, but they face economic barriers to consistent use. As a consequence, Latinas still experience unintended pregnancy at a rate higher than non-Hispanic whites, according to the institute.

And while the share of births to teenage mothers has dropped over the past two decades for all women, the highest share of births to teenage mothers is among native-born Hispanics.

“There are still a lot of barriers to information and access to contraception that exist,” said Jessica Gonzáles-Rojas, 36, the executive director of the institute, who has one son. “We still need to do a lot of work.”

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Hispanic Pregnancies Fall in U.S. as Women Choose Smaller Families

ORLANDO, Fla. — Hispanic women in the United States, who have generally had the highest fertility rates in the country, are choosing to have fewer children. Both immigrant and native-born Latinas had steeper birthrate declines from 2007 to 2010 than other groups, including non-Hispanic whites, blacks and Asians, a drop some demographers and sociologists attribute to changes in the views of many Hispanic women about motherhood.

As a result, in 2011, the American birthrate hit a record low, with 63 births per 1,000 women ages 15 to 44, led by the decline in births to immigrant women. The national birthrate is now about half what it was during the baby boom years, when it peaked in 1957 at 122.7 births per 1,000 women of childbearing age.

The decline in birthrates was steepest among Mexican-American women and women who immigrated from Mexico, at 25.7 percent. This has reversed a trend in which immigrant mothers accounted for a rising share of births in the United States, according to a recent report by the Pew Research Center. In 2010, birthrates among all Hispanics reached their lowest level in 20 years, the center found.

The sudden drop-off, which coincided with the onset of the recession, suggests that attitudes have changed since the days when older generations of Latinos prized large families and more closely followed Roman Catholic teachings, which forbid artificial contraception.

Interviews with young Latinas, as well as reproductive health experts, show that the reasons for deciding to have fewer children are many, involving greater access to information about contraceptives and women’s health, as well as higher education.

When Marucci Guzman decided to marry Tom Beard here seven years ago, the idea of having a large family — a Guzman tradition back in Puerto Rico — was out of the question.

“We thought one, maybe two,” said Ms. Guzman Beard, who gave birth to a daughter, Attalai, four years ago.

Asked whether Attalai might ever get her wish for a little brother or sister, Ms. Guzman Beard, 29, a vice president at a public service organization, said: “I want to go to law school. I’m married. I work. When do I have time?”

The decisions were not made in a vacuum but amid a sputtering economy, which, interviewees said, weighed heavily on their minds.

Latinos suffered larger percentage declines in household wealth than white, black or Asian households from 2005 to 2009, and, according to the Pew report, their rates of poverty and unemployment also grew more sharply after the recession began.

Prolonged recessions do produce dips in the birthrate, but a drop as large as Latinos have experienced is atypical, said William H. Frey, a sociologist and demographer at the Brookings Institution. “It is surprising,” Mr. Frey said. “When you hear about a decrease in the birthrate, you don’t expect Latinos to be at the forefront of the trend.”

D’Vera Cohn, a senior writer at the Pew Research Center and an author of the report, said that in past recessions, when overall fertility dipped, “it bounced back over time when the economy got better.”

“If history repeats itself, that will happen again,” she said.

But to Mr. Frey, the decrease has signaled much about the aspirations of young Latinos to become full and permanent members of the upwardly mobile middle class, despite the challenges posed by the struggling economy.

Jersey Garcia, a 37-year-old public health worker in Miami, is in the first generation of her family to live permanently outside of the Dominican Republic, where her maternal and paternal grandmothers had a total of 27 children.

“I have two right now,” Ms. Garcia said. “It’s just a good number that I can handle.”

“Before, I probably would have been pressured to have more,” she added. “I think living in the United States, I don’t have family members close by to help me, and it takes a village to raise a child. So the feeling is, keep what you have right now.”

But that has not been easy. Even with health insurance, Ms. Garcia’s preferred method of long-term birth control, an IUD, has been unaffordable. Birth control pills, too, with a $50 co-payment a month, were too costly for her budget. “I couldn’t afford it,” she said. “So what I’ve been doing is condoms.”

According to research by the National Latina Institute for Reproductive Health, the overwhelming majority of Latinas have used contraception at some point in their lives, but they face economic barriers to consistent use. As a consequence, Latinas still experience unintended pregnancy at a rate higher than non-Hispanic whites, according to the institute.

And while the share of births to teenage mothers has dropped over the past two decades for all women, the highest share of births to teenage mothers is among native-born Hispanics.

“There are still a lot of barriers to information and access to contraception that exist,” said Jessica Gonzáles-Rojas, 36, the executive director of the institute, who has one son. “We still need to do a lot of work.”

Read More..

Gadgetwise Blog: Q&A: How to Cut a LinkedIn Connection

I accepted a LinkedIn invitation from someone who looked like a good professional contact, but has just been spamming me with messages. How do I get rid of this person?

Although the LinkedIn social-networking site skews more toward people looking to make business connections, it can still suffer from the same annoyances that plague Facebook, Twitter, and other services. If you need to dump someone you have connected with on the site, start by logging into your LinkedIn account on the Web.

At the top of your profile page, click the Contacts link. On the right side of the Contacts page, click Remove Connections. When your list of LinkedIn contacts appears, turn on the checkbox next to the name or names of the people you wish to remove. Click the Remove Connection button. Your newly severed connection is not notified that you have parted ways.

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IHT Rendezvous: What to Watch for in Europe in 2013

LONDON — New Year’s predictions, like New Year’s resolutions, are probably best avoided.

François Hollande, the French president, was perhaps tempting fate when he told his fellow citizens in a New Year’s message that everything would be done to reverse the growth in unemployment by the end of 2013.

And Britain’s prime minister, David Cameron, may have been offering a hostage to fortune when he assured Britons, “We are on the right track.”

Chancellor Angela Merkel appeared to better reflect the zeitgeist when she told her fellow Germans: “We still need a lot of patience. The crisis is far from over.”

The economy dominated in Europe in 2012. But it could have been worse. Despite pessimistic forecasts at the start of the year, the euro did not crash and burn.

So what is in store for 2013?

Predictions aside, here are a few developments to watch in Europe and nearby:

As Ms. Merkel says, Europe’s economic crisis is far from over. The economy will continue to be issue No. 1. On one hand, Europe will have to break a downward spiral for countries on its southern tier: their contracting economies are making it ever hard to escape debt and rekindle growth. And Europe will have to pray that France doesn’t become the next front in that fight.

“Europe still has plenty to worry about. Economic output is shrinking in 9 of the 17 nations that use the euro. European banks remain weak, and many have yet to confront their problems decisively,” my colleague Jack Ewing reported on Sunday.

There will be the fight over the European Union budget that was kicked down the road till this spring. And concerns that Great Britain could eventually be heading for a “Brexit.” Mr. Cameron is expected to affirm that he will seek to claw back powers that have been passed to Europe and that he is prepared to hold a national referendum on E.U. membership after the next British election.

And there is still the financing of all the E.U. bailouts — Greece and company — in which European leaders will have to convince their citizens to stay the course.

No citizens will be more important than the Germans. 2013 is an election year in Germany and Italy. Ms. Merkel is favored to retain the chancellorship in the face of what my colleague Nicholas Kulish has described as the gaffe-prone campaign of Peer Steinbrück, her Social Democratic Party rival.

In Italy, Mario Monti, the prime minister, will face the electorate in February as a politician rather than a technocrat, as Silvio Berlusconi, his predecessor, hovers in the wings. The center-left Democratic Party is favorite to win, with Mr. Monti tipped as possible finance minister in a new coalition.

Europeans will also be watching election developments in Israel and Iran. The results will affect the current standoff over Iran’s alleged nuclear weapon program after a year in which an Israeli military strike was at times predicted as imminent.

The Europeans have staked everything on firming up sanctions in a policy aimed as much at restraining Israel as it was at curbing Iran’s nuclear ambitions.

As my colleagues David E. Sanger and James Risen recently reported, there are signs Iran wants to avoid a direct confrontation and is now more interested in a deal to end the standoff.

At the start of the New Year, the civil war in Syria remains unresolved, while potential conflicts are looming on Europe’s periphery.

Mali is likely to be in the news as Western and fellow African states struggle to resolve how to deal with a crisis provoked by an Islamist takeover of the north of the country.

An international intervention might not be ready to deploy there until September. But look out for action earlier than that if France, in particular, perceives the need to counter what many see as a potential terrorist threat to Europe from the Islamist regime there.

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2 Sides in Talks Inch Closer but No Fiscal Deal on Final Day

WASHINGTON — A frantic round of late-night negotiations on Sunday between Vice President Joseph R. Biden Jr. and Senator Mitch McConnell of Kentucky, the Republican leader, moved the Senate close to a deal to stave off hundreds of billions of dollars in tax increases and across-the-board spending cuts that would begin to kick in on Tuesday, according to people familiar with the talks.

T.J. Kirkpatrick for The New York Times

“It looks awful,” Senator Richard J. Durbin of Illinois, the second-ranking Democrat, said after tense negotiations on Sunday. More Photos »

But with almost no time on the clock and the Senate convening at 11 a.m. Monday, officials cautioned that optimism had risen in past days only to burst hours later. An objection by just one senator could derail a deal until the next Congress convenes on Thursday.

Representative Kevin McCarthy, a California Republican and the House majority whip, advised House members at 9 a.m. “to remain close to the Capitol as additional legislation and votes are possible pending action from the Senate.”

The last of a round of calls between Mr. Biden and Mr. McConnell ended around midnight, with both men promising to resume talks Monday morning.

“The leader and the V.P. continued their discussion late into the evening and will continue to work toward a solution,” Don Stewart, a spokesman for Mr. McConnell, said on Monday.

Both sides were already close Sunday on the central issue surrounding whether Congress would intervene before the nation careened off the so-called fiscal cliff: What would be the income threshold for the families that would absorb tax increases beginning Tuesday? Barely a week after House Republicans refused to vote to allow taxes to rise on income over $1 million, Senate Republicans proposed allowing tax rates to rise on income over $450,000 for individuals and $550,000 for couples. Democrats countered with a proposal to extend expiring Bush-era tax cuts for up to $360,000 for individuals and $450,000 for couples. For both sides, that meant major movement. Mr. Obama has been holding firm at a $250,000 threshold.

But Democrats were inching upward, possibly to $450,000 for all households. That had liberal Democrats nervous but centrists optimistic that a deal was in reach that could pass both the Senate and the House. The House Rules Committee on Sunday night was considering an emergency rules change that would suspend requirements that legislation be posted for at least 48 hours, so that a deal could be rushed to the floor.

The two sides are also getting closer on a new rate of taxation on inherited estates, one source said. The biggest stumbling block remains Democrats’ demand for a one-year “pause” on across-the-board spending cuts, which Republicans say can happen only with other up-front spending cuts.

In the balance are more than a half-trillion dollars in tax increases on virtually every working American and across-the-board spending cuts that are scheduled to begin Tuesday. Taken together, they threaten to push the economy back into recession.

The weekend saw a round of volatile negotiations as senators tried to reach a deal, only to be stalled for hours over a Republican demand that any accord must include a new way of calculating inflation that would mean smaller increases in payments to beneficiaries of programs like Social Security. Democrats halted the negotiations, which did not resume until Mr. McConnell made an emergency call to Mr. Biden and the White House sent the president’s chief legislative negotiator to meet with Senate Democrats. Soon after, Republicans withdrew their demand and discussions resumed, but little progress was made.

“It looks awful,” said Senator Richard J. Durbin of Illinois, the second-ranking Democrat. “I’m sure the American people are saying, with so much at stake why are they waiting so late to get this done?”

Senator Lindsey Graham, Republican of South Carolina, who had said early Sunday that he thought a deal was within reach, said later on his Twitter feed, “I think we’re going over the cliff.”

Weeks of negotiations between Mr. Obama and Speaker John A. Boehner inched toward a deal to avert the fiscal cliff, while locking in trillions of dollars in deficit reduction over 10 years and starting an effort to overhaul the tax code and entitlement programs like Medicare. But earlier this month, Mr. Boehner walked away from those talks.

Instead he tried to reach a much more modest deal to avoid a fiscal crisis by extending the expiring tax cuts for incomes under $1 million. When Mr. Boehner’s own Republican members revolted, he ceded negotiations to the Senate. But compromise has proved equally elusive in that chamber.

Absent a last-minute deal, Mr. Reid is expected to move on Monday to bring to a vote a stopgap measure pushed by Mr. Obama, which would retain lower tax rates for incomes below $250,000 and extend unemployment benefits. But it was not clear that would even get a vote. The objection of a single senator on Monday would run out the clock on the 112th Congress before a final tally could be taken.

Mr. Obama appeared on the NBC program “Meet the Press” on Sunday and implored Congress to act. “We have been talking to the Republicans ever since the election was over,” Mr. Obama said in the interview. “They have had trouble saying yes to a number of repeated offers.”

He added, “Now the pressure’s on Congress to produce.”

Robert Pear and John M. Broder contributed reporting.

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Chinese Firm Is Cleared to Buy American DNA Sequencing Company

Ramin Rahimian for The New York Times

DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.

The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.

The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.

Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.

The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.

A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.

But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.

Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.

Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.

BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.

“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”

BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”

BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.

Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.

Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.

“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.

Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.

BGI and Complete Genomics dismissed such concerns as preposterous.

Read More..

Chinese Firm Is Cleared to Buy American DNA Sequencing Company

Ramin Rahimian for The New York Times

DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.

The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.

The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.

Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.

The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.

A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.

But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.

Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.

Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.

BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.

“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”

BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”

BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.

Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.

Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.

“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.

Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.

BGI and Complete Genomics dismissed such concerns as preposterous.

Read More..

YouTube Ban Lifted in Pakistan, for 3 Minutes

ISLAMABAD, Pakistan — A ban on YouTube, which Pakistan imposed after an anti-Islam video caused riots in much of the Muslim world, was lifted Saturday, only to be reinstated — after three minutes — when it was discovered that blasphemous material was still available on the site.

After months of criticism of the ban, the government decided to allow Pakistanis to have access to YouTube again, saying steps had been taken to ensure that offensive content would not be visible. But those efforts apparently failed, and the authorities quickly backtracked.

The ban was imposed on Sept. 17 following violent protests in response to the video, which was made in the United States and ridiculed the Prophet Muhammad. The government then ordered all telecommunications companies to block Internet material deemed offensive to Muslims and urged people to report such material.

But the ban on YouTube came to be seen as censorship, and a growing number of the estimated 25 million Internet users in the country complained.

“This is purely a naked power play by the government and one that we should resist,” an editorial in The Express Tribune, an English-language daily newspaper in Karachi, Pakistan, said Friday. “This is about controlling our behavior and denying us access to the Internet.”

“We need to make it clear that we do not wish to regress to a dark age when a centralized authority controlled all access to information,” the editorial, observing the 100th day of the ban, went on to say. “Retreating to such an era would essentially mean that we were no longer living in a democracy.”

By Friday evening, Rehman Malik, the country’s interior minister, indicated that the ban would be lifted over the weekend. Mr. Malik said firewalls by government technicians were being installed to block pornographic and blasphemous material.

On Saturday, the Pakistan Telecommunication Authority directed local Internet service providers to make YouTube accessible. But by the afternoon, Geo, a private television news network that wields immense influence, reported that anti-Islam and blasphemous material was still available on YouTube. The criticism was led by Ansar Abbasi, a right-leaning journalist who often speaks out on morality and religion.

Yielding to the criticism, Prime Minister Raja Pervez Ashraf then ordered providers to again block access to the video-sharing site.

The flip-flop drew an immediate rebuke from users and led to a flurry of jokes on Twitter about the government’s dithering and backtracking.

“YouTube is a huge convenience for users, who benefit from it for educational as well as entertainment purposes,” Zubair Kasuri, the editor of Flare, a Karachi-based telecommunications magazine, said in a telephone interview. Mr. Kasuri expressed surprise over the government’s failure to install an effective firewall mechanism despite having months to do so.

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Envoy to Syria Warns of Descent to Warlord ‘Hell’

BEIRUT, Lebanon — The international envoy to Syria, Lakhdar Brahimi, drew a grim portrait on Sunday of the country’s future in the absence of a political solution, warning of a state carved up by warlords and a death toll that would rapidly surge, while conceding that there was little sign that the antagonists intended to negotiate.

Muzaffar Salman/Reuters

A rebel soldier firing at pro-government forces on Sunday in Aleppo, Syria. In Homs, civilians fled a district torn by fighting.

At a news conference at Arab League headquarters in Cairo, Mr. Brahimi said the violence, which has already killed tens of thousands of people, could claim 100,000 lives over the next year.

“People are talking about a divided Syria being split into a number of small states like Yugoslavia,” he said.

“This is not what is going to happen. What will happen is Somalization — warlords,” Mr. Brahimi said, according to a transcript of his remarks. Without a peace deal, he added, Syria would be “transformed into hell.”

Mr. Brahimi’s comments reflected a deepening pessimism after his apparently unsuccessful attempt over the past week to mediate the crisis by shuttling between opposition figures and the Syrian president, Bashar al-Assad. The envoy indicated that Mr. Assad had made no response to peace proposals, which included a plan to create a transitional government. In another sign of the impasse, the leader of a large opposition coalition all but rebuffed an invitation by Russia, one of Syria’s closest allies, to discuss solutions to the crisis.

On Saturday, nearly a week after Mr. Brahimi traveled to Damascus, the Syrian capital, Russia’s foreign minister said there was “no possibility” of persuading Mr. Assad to leave the country, which Syrian opposition groups have insisted is a precondition for any peace talks.

The envoy’s warnings came as activists in Syria reported a new exodus of civilians from the central city of Homs, adding untold numbers of internal refugees to the millions Mr. Brahimi said had already been displaced by the war. Over the past three days, hundreds and perhaps thousands of residents have fled fighting in the Deir Ba’alba district of Homs after government troops stormed the restive neighborhood, according to activists in Talbiseh, north of Homs, where many of the refugees were being received.

Some residents have blamed rebel fighters for the incursion, saying the army moved in after the insurgents inexplicably quit the neighborhood. In Syria’s other cities, residents have frequently been angered by the tendency of rebel fighters to occupy a neighborhood and then attack government troops before abruptly withdrawing and leaving civilians to bear the brunt of the army’s brutal retaliation.

It was unclear how many people had been killed in the fighting in the district. One young witness said he believed a neighbor had been killed. Two videos purportedly from Deir Ba’alba showed the bodies of about a dozen men who had apparently been executed with gunshots to the head. But there was no confirmation of claims made on Saturday by an antigovernment group, the Local Coordination Committees, that hundreds had been killed.

One resident of Deir Ba’alba, a 14-year-old boy reached by Skype in Talbiseh, said he had fled with his parents at 1:30 a.m. Sunday. The family had grown accustomed to sporadic fighting and gunfire, and usually fled to a relative’s house elsewhere in Homs. “But this time, it was heavy shelling,” the teenager said. “I could hear the asphalt cracking under the tanks.”

As he and his family left, the boy saw the body of a neighbor, a woman, lying on the ground, he said. His mother tried to convince the boy that the neighbor was alive. “I’m sure I saw her dead,” he said. “Her neck was bleeding. She was unveiled. It was the first time I saw our neighbor unveiled.”

One fighter from Homs said the retreat had come after the rebel military council for Homs failed to provide ammunition for its fighters in Deir Ba’alba. “They asked for supplies 48 hours before the invasion,” the fighter said. “Their call was not answered. I don’t know why.”

Civilians had begged the fighters not to leave, or at least to leave their weapons behind, two fighters said. Another fighter from Homs, calling the withdrawal “suicidal,” said the rebels had left civilians “to face their destiny alone.”

“We don’t know what happened to them,” he said.

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