Seattle police plan for helicopter drones hits severe turbulence

SEATTLE (Reuters) – One of the latest crime-fighting gadgets to emerge on the wish lists of U.S. law enforcement agencies – drone aircraft – has run into heavy turbulence in Seattle over a plan by police to send miniature robot helicopters buzzing over the city.

A recent push for unmanned police aircraft in several cities is being driven largely by grants from the U.S. Department of Homeland Security, including more than $ 80,000 the city of Seattle used to buy a pair of drone choppers in 2010.

But getting aerial drones off the ground has run into stiff opposition from civil libertarians and others who say the use of stealth airborne cameras by domestic law enforcement raises questions about privacy rights and the limits of police search powers.

The aircraft would never carry weapons, but the use of drones for even mundane tasks raises ire among some because of the association of pilotless crafts with covert U.S. missile strikes in places such as Pakistan and Yemen.

In Seattle last month, a community meeting where police officials presented plans to deploy their two remote-controlled helicopters erupted into yelling and angry chants of “No drones!”

“My question is simple: What’s the return policy for the drones?” said Steve Widmayer, 57, one of numerous citizens who spoke out against the unmanned aircraft. He predicted the City Council would commit “political suicide” if it backed the plan.

Seattle City Councilman Bruce Harrell said he hoped the council would set strict drone policies by January.

Police in Seattle, along with Florida’s Miami-Dade County and Houston, are among a handful of big-city law enforcement departments known to have acquired aerial drones. But those cities have not started operating the robot aircraft.

FEAR OF FLYING ROBOTS

In Oakland, California, this month, an Alameda County sheriff’s application for a federal grant to buy an aerial drone to help monitor unruly crowds and locate illegal marijuana farms drew opposition at a Board of Supervisors meeting.

“I do not want flying spy robots looking into my private property with infrared cameras,” Oakland resident Mary Madden said. “It’s an invasion of my privacy.”

County Board President Nate Miley said the issue would be taken up by the supervisors’ Public Protection Committee.

The two Draganflyer X6 remote-controlled miniature helicopters purchased by Seattle have so far been mostly grounded, restricted to training and demonstration flights.

Equipped to carry video, still and night-vision cameras, they can remain aloft for only 15 minutes at a time before their batteries run out, police said.

Assistant Police Chief Paul McDonagh said the aircraft would not be used in Seattle for surveillance or for monitoring street protests. Instead, his department’s plans to deploy drones to search for missing persons, pursue fleeing suspects, assist in criminal investigations and for unspecified “specific situations” subject to McDonagh’s approval.

Seattle City Councilman Bruce Harrell said he hoped the council would set strict drone policies by January.

Months ago in Texas, Chief Deputy Randy McDaniel of the Montgomery County Sheriff’s Office raised eyebrows by saying he hoped to equip his department’s drones with rubber bullets and tear gas, though he told Reuters his thinking on armed aircraft has since evolved.

“From a law enforcement standpoint, that’s never going to happen,” he said. McDaniel said his office received Federal Aviation Administration clearance earlier this month to begin operational drone flights but has not yet had occasion to do so.

Actual U.S. domestic use of law-enforcement drone aircraft remains extremely limited.

The Mesa County Sheriff’s Department in Colorado has been operating two small drones, also bought with Homeland Security funds, since 2010.

It uses them largely to create three-dimensional images of crime scenes, said Benjamin Miller, director of the department’s drone program. They are not used for surveillance, he said.

In North Dakota, the Grand Forks police department last year called in a high-flying Predator drone operated by the U.S. Department of Homeland Security to monitor a tense standoff with a rancher over alleged stolen cattle.

The rancher, Rodney Brossart, and five family members are believed to be the first Americans nabbed by police with drone assistance – with the possible exception of operations along the southwest border with Mexico.

The use of drones there by the Customs and Border Protection agency – a part of Homeland Security – led to 7,500 arrests and the seizure of thousands of pounds of drugs up to the end of last year.

The nationality of those arrested in drone assisted operations in the borderlands is not clear, nor is if Customs and Border Protection partnered with local forces in any of those arrests.

(Editing by Steve Gorman and Jackie Frank)

Gadgets News Headlines – Yahoo! News

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Psych Star Dulé Hill & Wife Nicole Lyn Separate

By Stephen M. Silverman

11/28/2012 at 12:00 PM EST

Nicole Lyn and Dulé Hill

Toby Canham/Getty

West Wing and Psych actor Dulé Hill has separated from his wife of 8 years, actress Nicole Lyn, citing irreconcilable differences, according to papers filed in Los Angeles Superior Court earlier this month.

The documents, which have been obtained by PEOPLE, state that property rights are to be determined and that the couple have no minor children.

During happier times, Hill told PEOPLE in 2010 that when it came to the couple's favorite vacation spot, "My and my wife's families are from Jamaica. It's laid-back, the people are lovely, the food is delicious, and the drinks are always flowing!"

On the USA Network's Psych, Hill, 37, plays the sidekick of a detective claiming to be a psychic. He claimed the Vancouver location wasn't ideal for him and his wife, telling PEOPLE in 2007: "Early in a marriage, you're still trying to find your footing. So spending too much time away from each other isn't good."

On NBC's The West Wing from 1999 to 2006 he played presidential aide Charlie Young.

Lyn's credits include the Fox teen sitcom Student Bodies, according to IMDB, which also notes that she works as a deejay under the name Ms Nix.

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CDC: HIV spread high in young gay males

NEW YORK (AP) — Health officials say 1 in 5 new HIV infections occur in a tiny segment of the population — young men who are gay or bisexual.

The government on Tuesday released new numbers that spotlight how the spread of the AIDS virus is heavily concentrated in young males who have sex with other males. Only about a quarter of new infections in the 13-to-24 age group are from injecting drugs or heterosexual sex.

The Centers for Disease Control and Prevention said blacks represented more than half of new infections in youths. The estimates are based on 2010 figures.

Overall, new U.S. HIV infections have held steady at around 50,000 annually. About 12,000 are in teens and young adults, and most youth with HIV haven't been tested.

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Online:

CDC report: http://www.cdc.gov/vitalsigns

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Wall Street cuts losses on Boehner "fiscal cliff" comment

NEW YORK (Reuters) - Stocks sharply pared losses on Wednesday after U.S. House Speaker John Boehner said he was optimistic that a deal on the "fiscal cliff" to avert large tax hikes and spending cuts could be reached.

After falling nearly 1 percent, the S&P 500 pared losses to trade near flat after Boehner said that Republicans were willing to put revenues on the table if Democrats agreed to spending cuts.

For weeks now, the market has been swinging back and forth on headlines out of Washington regarding the ongoing U.S. budget talks.

Later in the day, President Barack Obama will meet at the White House with chief executives from top corporations including Goldman Sachs , Deloitte LLP, and Caterpillar Inc , to discuss U.S. fiscal problems.

"While there's little that the president and vice president could do at today's meeting to improve moods in America's corner office, we still believe a legislative compromise will be reached before 'fiscal cliff' detonates," said Jack Ablin, chief investment officer at BMO Private Bank.

"In the meantime, we expect daunting headlines and emotional market volatility."

One possible result of the deficit reduction talks is a rise in the tax rate on dividends, prompting some firms to issue special dividends or move up plans for dividends.

The latest example is retailer Costco Wholesale Corp , which said it will pay a special $3 billion dividend to investors. The company posted monthly same-store sales that beat forecasts. The stock rose 4.7 percent to $101.07.

The Dow Jones industrial average <.dji> was up 3.38 points, or 0.03 percent, at 12,881.51. The Standard & Poor's 500 Index <.spx> was down 1.73 points, or 0.12 percent, at 1,397.21. The Nasdaq Composite Index <.ixic> was down 5.10 points, or 0.17 percent, at 2,962.69.

Earlier, the S&P 500 fell nearly 1 percent on data that showed U.S. single-family home sales fell in October, casting a shadow over what has been one of the brighter spots in the U.S. economy.

Knight Capital Group Inc shares jumped 10 percent to $3.27 on news that Getco LLC has sent a proposal for a merger between Getco and Knight Capital at a price of $3.50 per share, according to a regulatory filing.

On the downside, Apple Inc shares fell 1.3 percent to $576.80, weighing heavily on the overall market.

(Reporting By Angela Moon; Editing by Kenneth Barry)

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Egypt protests continue in crisis over Mursi powers

CAIRO (Reuters) - Hundreds of demonstrators were in Cairo's Tahrir Square for a sixth day on Wednesday to demand that President Mohamed Mursi rescind a decree they say gives him dictatorial powers, and two of Egypt's top courts stopped work in protest.

But in a move that one Muslim Brotherhood official said could help resolve the worst crisis of Mursi's five-month presidency, the assembly drawing up a new constitution said it would complete work on a final draft on Wednesday.

The official said the final draft could go to a popular referendum by mid-December. If approved it would cancel the constitutional declaration that extended Mursi's powers and sparked street protests that drew tens of thousands on Tuesday. Brotherhood and other Islamists have called for a rally backing the president on Saturday.

"We will start now and finish today, God willing," Hossam el-Gheriyani, the constituent assembly speaker, said at the start of a meeting to finalize drafting the constitution.

Three assembly members said a vote on the draft by the assembly was planned for Thursday.

Many liberals and other opponents of Mursi have walked out of the constituent assembly, which is dominated by Islamists, saying their voices are not being heard.

Once drafted, the constitution will go to Mursi for approval, and he must then put it to a popular referendum within 15 days, which could mean the plebiscite would be held by mid-December.

The move immediately drew scorn from leading Egyptian opposition figure Amr Moussa, a former Arab League chief.

"This is nonsensical and one of the steps that shouldn't be taken, given the background of anger and resentment to the current constitutional assembly," he told Reuters.

Adding to the tension, Egypt's Cassation and Appeals courts said they would suspend their work until the constitutional court rules on the decree.

The judiciary, largely unreformed since the popular uprising that unseated Mursi's autocratic predecessor Hosni Mubarak, was seen as a major target in the decree issued last Thursday, which extended his powers and put his decisions temporarily beyond legal challenge. The decree also protected the constituent assembly from judicial oversight, fending off court cases that call for it to be dissolved.

DEPTH OF ANGER

"The president wants to create a new dictatorship," said 38-year-old Mohamed Sayyed Ahmed in Tahrir. He has not had a job for two years and is one of many in the square who are as angry over economic hardship as they are about Mursi's actions.

"We want the scrapping of the constitutional declaration and the constituent assembly, so a new one is created representing all the people and not just one section," he said.

Showing the depth of distrust of Mursi in parts of the judiciary, a spokesman for the Supreme Constitutional Court, which earlier this year declared void the Islamist-led parliament, said it felt under attack by the president.

In a speech on Friday, Mursi praised the judiciary as a whole but referred to corrupt elements he aimed to weed out.

"The really sad thing that has pained the members of this court is when the president of the republic joined, in a painful surprise, the campaign of continuous attack on the Constitutional Court," said the spokesman Maher Samy.

Senior judges have been negotiating with Mursi about how to restrict his new powers.

Mursi's administration insists that his actions were aimed at breaking a political logjam to push Egypt more swiftly towards democracy, an assertion his opponents dismiss.

The West worries about turbulence in a nation that has a peace treaty with Israel and is now ruled by Islamists they long kept at arms length. The United States, a big donor to Egypt's military, has called for "peaceful democratic dialogue".

Two people have been killed in violence since the decree, while low-level clashes between protesters and police have gone on for days near Tahrir. Violence has flared in other cities.

Trying to ease tensions with judges, Mursi said elements of his decree giving his decisions immunity applied only to matters of "sovereign" importance, a compromise suggested by the judges.

That should limit it to issues such as declaring war, but experts said there was much room for interpretation. The judges themselves are divided, and the broader judiciary has yet to back the compromise. Some have gone on strike over the decree.

A constitution must be in place before a new parliament can be elected, and until that time Mursi holds both executive and legislative powers. An election could take place in early 2013.

One presidential source said Mursi wanted to re-make the Supreme Constitutional Court after it declared the parliament void, which led to its dissolution by the then ruling military.

Both Islamists and their opponents broadly agree that the judiciary needs reform, but Mursi's rivals oppose his methods.

(Additional reporting by Tom Perry and Marwa Awad; Writing by Edmund Blair; Editing by Will Waterman)

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Nintendo says more than 400,000 Wii Us sold in US

NEW YORK (AP) — Nintendo has sold more than 400,000 of its new video game console, the Wii U, in its first week on sale in the U.S., the company said Monday.

The Wii U launched on Nov. 18 in the U.S. at a starting price of $ 300. Nintendo said the sales figure, based on internal estimates, is through Saturday, or seven days later.

The Wii U is the first major game console to launch in six years. It comes with a new touch-screen controller that promises to change how people play games by offering different people in the same room a different experience, depending on the controller used.

Six years ago, Nintendo Co. sold 475,000 of the original Wii in that console’s first seven days in stores, according to data from the NPD Group. The original Wii remains available, and Nintendo said it sold more than 300,000 of them last week, along with roughly 250,000 handheld Nintendo 3DS units and about 275,000 of the Nintendo DS.

At this early stage, demand isn’t the only factor dictating how many consoles are sold. Supply is, too. This means it’s likely that more people wanted to buy the Wii U in the first week than those who were able to. The original Wii was in short supply more than a year after it went on sale.

As of Monday afternoon, the website of Best Buy Co. was sold out of the Wii U. Video game retailer GameStop Corp. said there was at least a three day wait for a deluxe Wii U, which costs $ 350, has more memory and comes with a game called “Nintendo Land.” GameStop still had the basic, $ 300 version available.

Wedbush analyst Michael Pachter estimates that Nintendo will ship 1 million to 1.5 million Wii Us in the U.S. through the end of January.

Gaming News Headlines – Yahoo! News

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Miranda Kerr Strips Down for the Victoria’s Secret Fashion Show

Stylewatch
Style News Now

11/27/2012 at 09:00 AM ET

Courtesy Victoria’s Secret

Just because Miranda Kerr didn’t wear the $2.5 million Victoria’s Secret ‘Fantasy Bra’ in the brand’s fashion show this year doesn’t mean she didn’t get nervous before walking the runway.

“I think there is just as much pressure if you’re wearing it or not because you’re in underwear in front of millions of people,” Kerr tells PEOPLE. “I try to enjoy it and have fun.”

PEOPLE got its hands on an exclusive backstage photo of Kerr getting ready to stun at the VS fashion show in a super-sexy white-and-black ensemble (above). And though the supermodel might make looking that hot look effortless, it obviously takes work, she admits.

“I’ve amped up my training,” she shares. “[I've been] doing a lot of Pilates, yoga, boxing and working my core, butt and legs. I also drink healthy green juices everyday, and protein shakes.”

But memories of the tough training somehow fade away when Kerr hits the catwalk — this year alongside superstars Rihanna, Justin Bieber and Bruno Mars.  ”I love feeling the music when I come down the runway,” she shares. “The energy is incredible.”

Catch Kerr and the rest of the Victoria’s Secret Angels in action when the show airs Tuesday, Dec. 4 on CBS. Tell us: Will you be tuning in to the Victoria’s Secret Fashion Show?

–Jennifer Cress

PHOTOS: SEE MORE GORGEOUS WOMEN IN ‘LAST NIGHT’S LOOK’

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Bounce houses a party hit but kids' injuries soar

CHICAGO (AP) — They may be a big hit at kids' birthday parties, but inflatable bounce houses can be dangerous, with the number of injuries soaring in recent years, a nationwide study found.

Kids often crowd into bounce houses, and jumping up and down can send other children flying into the air, too.

The numbers suggest 30 U.S. children a day are treated in emergency rooms for broken bones, sprains, cuts and concussions from bounce house accidents. Most involve children falling inside or out of the inflated playthings, and many children get hurt when they collide with other bouncing kids.

The number of children aged 17 and younger who got emergency-room treatment for bounce house injuries has climbed along with the popularity of bounce houses — from fewer than 1,000 in 1995 to nearly 11,000 in 2010. That's a 15-fold increase, and a doubling just since 2008.

"I was surprised by the number, especially by the rapid increase in the number of injuries," said lead author Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital in Columbus, Ohio.

Amusement parks and fairs have bounce houses, and the playthings can also be rented or purchased for home use.

Smith and colleagues analyzed national surveillance data on ER treatment for nonfatal injuries linked with bounce houses, maintained by the U.S. Consumer Product Safety Commission. Their study was published online Monday in the journal Pediatrics.

Only about 3 percent of children were hospitalized, mostly for broken bones.

More than one-third of the injuries were in children aged 5 and younger. The safety commission recommends against letting children younger than 6 use full-size trampolines, and Smith said barring kids that young from even smaller, home-use bounce houses would make sense.

"There is no evidence that the size or location of an inflatable bouncer affects the injury risk," he said.

Other recommendations, often listed in manufacturers' instruction pamphlets, include not overloading bounce houses with too many kids and not allowing young children to bounce with much older, heavier kids or adults, said Laura Woodburn, a spokeswoman for the National Association of Amusement Ride Safety Officials.

The study didn't include deaths, but some accidents are fatal. Separate data from the product safety commission show four bounce house deaths from 2003 to 2007, all involving children striking their heads on a hard surface.

Several nonfatal accidents occurred last year when bounce houses collapsed or were lifted by high winds.

A group that issues voluntary industry standards says bounce houses should be supervised by trained operators and recommends that bouncers be prohibited from doing flips and purposefully colliding with others, the study authors noted.

Bounce house injuries are similar to those linked with trampolines, and the American Academy of Pediatrics has recommended against using trampolines at home. Policymakers should consider whether bounce houses warrant similar precautions, the authors said.

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Online:

Pediatrics: http://www.pediatrics.org

Trade group: http://www.naarso.com

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Market opens down on "fiscal cliff" caution

NEW YORK (Reuters) - U.S. stocks fell on Tuesday as worries over the impact of "fiscal cliff" on the economy overshadowed progress in easing Greece's debt burden and a slew of positive U.S. economic data.

A deal in Europe to release emergency aid to debt-laden Greece gave a brief, early lift to stocks, but the news was not enough to sustain the gains as investors confronted the looming "fiscal cliff" at home.

As Democrats and Republicans prepared to resume efforts to bridge their sharp differences over taming the federal debt this week in Washington, the market resumed its cautious mode.

"It's like there is nothing else but the fiscal cliff now. It is too big of an issue both economically and politically for investors to just brush off," said Jack DeGan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

The market's worry is whether Congress and the White House can agree on ways to avoid some $600 billion in automatic spending cuts and tax increases that are due to kick early next year. Some fear dramatic fiscal restraint could send the economy into recession.

"It's hard for markets to move on fundamentals now. Even if they do, they quickly come back to being cautious. Investors may buy on small dips but they don't stay in that position for long," DeGan said.

Market reaction was muted to data that showed Americans' confidence in November hit the highest level in more than four years and home prices in September rose for an eighth straight month.

In addition, a gauge of planned U.S. business spending increased by the most in five months in October, data on durable goods orders showed.

The Dow Jones industrial average <.dji> was down 37.35 points, or 0.29 percent, at 12,930.02. The Standard & Poor's 500 Index <.spx> was down 2.75 points, or 0.20 percent, at 1,403.54. The Nasdaq Composite Index <.ixic> was down 4.21 points, or 0.14 percent, at 2,972.58.

As of Monday's close, the S&P 500 was holding above the 1,400, the level it reclaimed last week. But volume continued to be weak as traders awaited any progress to avert the fiscal restraint. Last week, the S&P 500 advanced nearly 4 percent.

Among individual stocks, Corning Inc shares rose 6.3 percent to $12.07 after the specialty glass maker said it expects full-year sales of its Gorilla glass, used in smartphones and tablets, to approach $1 billion.

McMoRan Exploration Co shares tumbled 22 percent to $7.55 after the oil and gas explorer said on Monday that it could not achieve a measurable flow test at its key Davy Jones No. 1 well in the Gulf of Mexico.

(Reporting By Angela Moon; Editing by Theodore d'Afflisio and Kenneth Barry)

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Greece, markets satisfied by EU-IMF Greek debt deal

BRUSSELS (Reuters) - The Greek government and financial markets were cheered on Tuesday by an agreement between euro zone finance ministers and the International Monetary Fund to reduce Greece's debt, paving the way for the release of urgently needed aid loans.

The deal, clinched at the third attempt after weeks of wrangling, removes the biggest risk of a sovereign default in the euro zone for now, ensuring the near-bankrupt country will stay afloat at least until after a 2013 German general election.

"Tomorrow, a new day starts for all Greeks," Prime Minister Antonis Samaras told reporters at 3 a.m. in Athens after staying up to follow the tense Brussels negotiations.

After 12 hours of talks, international lenders agreed on a package of measures to reduce Greek debt by more than 40 billion euros, projected to cut it to 124 percent of gross domestic product by 2020.

In an additional new promise, ministers committed to taking further steps to lower Greece's debt to "significantly below 110 percent" in 2022.

That was a veiled acknowledgement that some write-off of loans may be necessary in 2016, the point when Greece is forecast to reach a primary budget surplus, although Germany and its northern allies continue to reject such a step publicly.

Analyst Alex White of JP Morgan called it "another moment of ‘creative ambiguity' to match the June (EU) Summit deal on legacy bank assets; i.e. a statement from which all sides can take a degree of comfort".

The euro strengthened, European shares climbed to near a three-week high and safe haven German bonds fell on Tuesday, after the agreement to reduce Greek debt and release loans to keep the economy afloat.

"The political will to reward the Greek austerity and reform measures has already been there for a while. Now, this political will has finally been supplemented by financial support," economist Carsten Brzeski of ING said.

PARLIAMENTARY APPROVAL

To reduce the debt pile, ministers agreed to cut the interest rate on official loans, extend the maturity of Greece's loans from the EFSF bailout fund by 15 years to 30 years, and grant a 10-year interest repayment deferral on those loans.

German Finance Minister Wolfgang Schaeuble said Athens had to come close to achieving a primary surplus, where state income covers its expenditure, excluding the huge debt repayments.

"When Greece has achieved, or is about to achieve, a primary surplus and fulfilled all of its conditions, we will, if need be, consider further measures for the reduction of the total debt," Schaeuble said.

Eurogroup Chairman Jean-Claude Juncker said ministers would formally approve the release of a major aid installment needed to recapitalize Greece's teetering banks and enable the government to pay wages, pensions and suppliers on December 13 - after those national parliaments that need to approve the package do so.

The German and Dutch lower houses of parliament and the Grand Committee of the Finnish parliament have to endorse the deal. Losing no time, Schaeuble said he had asked German lawmakers to vote on the package this week.

Greece will receive 43.7 billion euros in four installments once it fulfils all conditions. The 34.4 billion euro December payment will comprise 23.8 billion for banks and 10.6 billion in budget assistance.

The IMF's share, less than a third of the total, will be paid out only once a buy-back of Greek debt has occurred in the coming weeks, but IMF Managing Director Christine Lagarde said the Fund had no intention of pulling out of the program.

Austrian Chancellor Werner Faymann welcomed the deal but said Greece still had a long way to go to get its finances and economy into shape. Vice Chancellor Michael Spindelegger told reporters the important thing had been keeping the IMF on board.

"It had threatened to go in a direction that the IMF would exit Greek financing. This was averted and this is decisive for us Europeans," he said.

The debt buy-back was the part of the package on which the least detail was disclosed, to try to avoid giving hedge funds an opportunity to push up prices. Officials have previously talked of a 10 billion euro program to buy debt back from private investors at about 35 cents in the euro.

The ministers promised to hand back 11 billion euros in profits accruing to their national central banks from European Central Bank purchases of discounted Greek government bonds in the secondary market.

BETTER FUTURE

The deal substantially reduces the risk of a Greek exit from the single currency area, unless political turmoil were to bring down Samaras's pro-bailout coalition and pass power to radical leftists or rightists.

The biggest opposition party, the hard left SYRIZA, which now leads Samaras's center-right New Democracy in opinion polls, dismissed the deal and said it fell short of what was needed to make Greece's debt affordable.

Greece, where the euro zone's debt crisis erupted in late 2009, is proportionately the currency area's most heavily indebted country, despite a big cut this year in the value of privately-held debt. Its economy has shrunk by nearly 25 percent in five years.

Negotiations had been stalled over how Greece's debt, forecast to peak at 190-200 percent of GDP in the coming two years, could be cut to a more bearable 120 percent by 2020.

The agreed figure fell slightly short of that goal, and the IMF insisted that euro zone ministers should make a firm commitment to further steps to reduce the debt if Athens faithfully implements its budget and reform program.

The main question remains whether Greek debt can become affordable without euro zone governments having to write off some of the loans they have made to Athens.

Germany and its northern European allies have hitherto rejected any idea of forgiving official loans to Athens, but European Union officials believe that line may soften after next September's German general election.

Schaeuble told reporters that it was legally impossible for Germany and other countries to forgive debt while simultaneously giving new loan guarantees. That did not explicitly preclude debt relief at a later stage, once Greece completes its adjustment program and no longer needs new loans.

But senior conservative German lawmaker Gerda Hasselfeldt said there was no legal possibility for a debt "haircut" for Greece in the future either.

At Germany's insistence, earmarked revenue and aid payments will go into a strengthened "segregated account" to ensure that Greece services its debts.

A source familiar with IMF thinking said a loan write-off once Greece has fulfilled its program would be the simplest way to make its debt viable, but other methods such as forgoing interest payments, or lending at below market rates and extending maturities could all help.

German central bank governor Jens Weidmann has suggested that Greece could "earn" a reduction in debt it owes to euro zone governments in a few years if it diligently implements all the agreed reforms. The European Commission backs that view.

The ministers agreed to reduce interest on already extended bilateral loans in stages from the current 150 basis points above financing costs to 50 bps.

(Additional reporting by Annika Breidhardt, Robin Emmott and John O'Donnell in Brussels, Andreas Rinke and Noah Barkin in Berlin, Michael Shields in Vienna; Writing by Paul Taylor; editing by David Stamp)

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