Berry’s ex says he was threatened before fight












LOS ANGELES (AP) — Halle Berry‘s ex-boyfriend claims the actress’s fiance threatened to kill him during a Thanksgiving confrontation that left him with a broken rib, bruised face and under arrest.


Gabriel Aubry‘s claims are included in court filings that led a judge Monday to grant a restraining order against actor Olivier Martinez, who is engaged to the Oscar-winning actress.












Aubry, 37, was arrested on suspicion of misdemeanor battery after his confrontation with Martinez on Thursday, but he states in the civil court filings that he was not the aggressor and that he was threatened and attacked without provocation. Martinez told police that Aubry had attacked first, the filings state.


A representative for Martinez could not be immediately reached for comment.


Aubry’s filing claims Martinez threatened him the day before the fight at an event at his daughter’s school that he and the actors attended. Aubry, a model, has a 4-year-old daughter with Berry and the former couple have been engaged in a lengthy custody battle.


The proceedings have been confidential, but Aubry states a major aspect of the case was Berry’s wish to move to Paris and take her daughter with her. The request was denied Nov. 9, Berry’s court filings state, and Aubry shares joint custody of the young girl.


Aubry claims Martinez told him, “You cost us $ 3 million,” while he was punched and kicked him in the driveway of Berry’s home. Aubry had gone to the home to allow his daughter to spend Thanksgiving with her mother, the filings state. Aubry claims Martinez threatened to kill him if Aubry didn’t move to Paris.


Berry was not in the driveway during the confrontation and neither was their daughter, the documents state.


Photos of Aubry’s face with cuts and a black eye were included in his court filing.


A judge set a hearing for Dec. 17 to consider whether a three-year restraining order should be granted. Aubry has a Dec. 13 court date for the possible battery case, which has not yet been filed by prosecutors.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP .


Entertainment News Headlines – Yahoo! News


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Psoriasis patients look to Hong Kong government for help – and hope












HONG KONG (Reuters) – When Gary Lai first came down with the skin disease psoriasis, he got so tired of the stigma he faced in the outside world that he would lock himself away in his apartment whenever he didn’t have to be at work.


“When you have to apply ointment all over your body, it is impractical. It also has a smell and when you go to work, your colleagues will start asking questions,” said Lai, who was 24 when he was diagnosed.












Now Lai, 41, and other Hong Kong residents suffering from psoriasis – a lifelong autoimmune disease that covers the skin in red, scaly plaques – have joined hands to press the government to help subsidize their high treatment costs.


Affecting up to two percent of the population in Asia, or 125 million people worldwide, this disfiguring disease can take a higher physical and mental toll on patients than cancer and heart disease, past surveys have found.


“During all that time, I experienced great stress and prejudice. In the subway, people around me will stare at me and they think I may infect them,” said Lai, a data analyst. “I can tell from their eyes even if they don’t say anything.”


In psoriasis patients, skin cells grow too fast and rapidly pile up, forming red and inflamed scales or plaques on the skin. While cell reproduction in normal skin takes 28 days, that process in psoriasis patients takes only four days.


The exact cause of psoriasis remains unknown although experts believe it is linked to the immune system where a class of fighter cells attack the body’s own healthy skin cells by mistake. They cite a combination of risk factors, including genetic predisposition and environmental factors.


Dermatologist Yeung Chi-keung said first-line treatments such as creams, exposure to ultraviolet light and oral drugs tend not to work for about 10 percent of patients, who will then require second-line drugs, which are injected.


These injectable drugs now cost an average of HK$ 10,000 (US$ 1,282) a month and getting on Hong Kong‘s general list will mean patients need only pay a nominal administrative fee of $ 10.


“In the last month, we (dermatologists in Hong Kong) proposed to the government to consider subsidizing these drugs,” said Yeung, who is honorary clinical associate professor of dermatology at the University of Hong Kong’s department of medicine.


A spokesman for the Hospital Authority, the body that oversees all public hospitals in Hong Kong, said it would have to make a detailed study before deciding if it will subsidize the treatment of such patients.


“The review process would take into account scientific evidence on safety, efficacy and cost-effectiveness as well as actual clinical experience in the use of drugs. Views of professionals and patient groups will also be considered,” the spokesman added.


For the patients who wait and hope, the stress never goes away.


“When I go to the pool, other swimmers think it is contagious and that I will pollute the water, so they complain to the lifeguard to get rid of me,” Lai said. “We hope the government will put these drugs on their general (subsidized) list.”


(Reporting by Tan Ee Lyn, editing by Elaine Lies)


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Catalan election weakens bid for independence from Spain












BARCELONA, Spain (Reuters) – Separatists in Spain’s Catalonia won regional elections on Sunday but failed to get the resounding mandate they need to push convincingly for a referendum on independence.


Catalan President Artur Mas, who has implemented unpopular spending cuts in an economic crisis, had called an early election to test support for his new drive for independence for Catalonia, a wealthy region in northeastern Spain.












Voters handed almost two thirds of the 135-seat local parliament to four different Catalan separatist parties that all want to hold a referendum on secession from Spain.


But they punished the main separatist group, Mas’s Convergence and Union alliance, or CiU, cutting back its seats to 50 from 62. That will make it difficult for Mas to lead a united drive to hold a referendum in defiance of the constitution and the central government in Madrid.


“Mas clearly made a mistake. He promoted a separatist agenda and the people have told him they want other people to carry out his agenda,” said Jose Ignacio Torreblanca, head of the European Council on Foreign Relations’ Madrid office.


The result will come as a relief for Spanish Prime Minister Mariano Rajoy, who is battling a deep recession and 25 percent unemployment while he struggles to cut high borrowing costs by convincing investors of Spain’s fiscal and political stability.


Mas, surrounded by supporters chanting “independence, independence”, said he would still try to carry out the referendum but added that, “it is more complex, but there is no need to give up on the process.”


Resurgent Catalan separatism had become a major headache for Rajoy, threatening to provoke a constitutional crisis over the legality of a referendum just as he is trying to concentrate on a possible international bailout for troubled Spain.


Frustration over the Spanish tax system, under which Catalonia shares some of its tax revenue with the rest of the country, has revived a long-dormant secessionist spirit in Catalonia. Catalans believe if they could invest more of their taxes at home their economy would prosper.


Mas had tried to ride the separatist wave after hundreds of thousands demonstrated in the streets in September, demanding independence for their region, which has its own language and sees itself as distinct from the rest of Spain.


In a speech to supporters on Sunday night, Mas recognized that he had lost ground and though CiU is still the largest group in Catalan‘s parliament, he said would need the support of another party to govern and to continue pushing through tough economic measures.


“We’ve fallen well short of the majority we had. We’ve been ruling for two years under very tough circumstances,” he said.


Traditional separatists the Republican Left, or ERC, won the second biggest presence in the Catalan parliament, with 21 seats. The Socialists took 20 seats. And Rajoy’s center-right People’s Party won 19.


Three other parties, including two that want a referendum on independence, split the remaining 25 seats. ECFR’s Torreblanca said the Catalan elections were similar to those around Europe in that economic woes have benefited marginal political groups, while larger, traditional parties have lost ground.


MAS MADE BIG BET


Mas’s bet on separatism may have helped out the big winner of Sunday’s election, the Republican Left, which more than doubled its seats in the Catalan parliament to 21 from 10,


“He talked about it so much that he ended up helping the only party that has always been for independence, which is the Republican Left,” said political analyst Ismael Crespo at the Ortega y Gasset research institute.


A legal referendum would require a change to the constitution, and Spain’s main parties in the national parliament, the Socialists and Rajoy’s People’s Party, have shown no appetite for that.


Mas’s CiU had traditionally been a pro-business moderate nationalist party that fought for more autonomy and self-governance for Catalonia without breaking away from Spain.


Mas broke with that tradition in September when he made a big bet on a referendum.


Catalonia, with 7.5 million people, is more populous than Denmark. Its economy is almost as big as Portugal’s and it generates one fifth of Spanish gross domestic product.


After a decade of overspending during Spain’s real estate boom, Catalonia and most of the country’s other regions are struggling to pay state workers and meet debt payments. Unemployment has soared and spending on hospitals and schools has been cut.


Mas was one of the first Spanish leaders to embark on harsh austerity measures after Catalonia’s public deficit soared and the regional government was shunned by debt markets.


Josep Freixas, 37 and unemployed, voted for CiU but recognized the party had lost seats “because people have been really affected by the spending cuts and by the crisis.”


At CiU headquarters on Sunday night Freixas carried a rolled up pro-independence flag – a single star against yellow and red stripes – that has become a symbol of the separatist movement.


Turnout was very high in the election, 68 percent, 10 percentage points higher than in the previous vote two years ago.


Many Catalans are angry that Rajoy has refused to negotiate a new tax deal with their largely self-governing region. Annually, an estimated 16 billion euros ($ 21 billion) in taxes paid in Catalonia, about 8 percent of its economic output, is not returned to the region.


Home to car factories and banks and birthplace of surrealist painter Salvador Dali and architect Antoni Gaudi, the region also has one of the world’s most successful football clubs, FC Barcelona.


Wary that separatism could spread to the Basque Country and beyond, Rajoy said this week that the Catalan election was more important than general elections.


(The story corrects billion to million in 20th paragraph.)


(Editing by Myra MacDonald and Sandra Maler)


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Israel successfully tests missile defense system












JERUSALEM (AP) — Israel successfully tested its newest missile defense system Sunday, the military said, a step toward making the third leg of what Israel calls its “multilayer missile defense” operational.


The “David’s Sling” system is designed to stop mid-range missiles. It successfully passed its test, shooting down its first missile in a drill Sunday in southern Israel, the military said.












The system is designed to intercept projectiles with ranges of up to 300 kilometers (180 miles).


Israel has also deployed Arrow systems for longer-range threats from Iran. The Iron Dome protects against short-range rockets fired by militants in the Gaza Strip and Hezbollah guerrillas in Lebanon. Iron Dome shot down hundreds of rockets from Gaza in this month’s round of fighting.


Israeli Defense Minister Ehud Barak said the success of Iron Dome highlighted the “immense importance” of such systems.


“David’s Sling,” also known “Magic Wand,” is developed by Israel’s Rafael Advanced Defense Systems and U.S.-based Raytheon Co. and is primarily designed to counter the large arsenal of Hezbollah rockets in Lebanon.


The military said the program, which is on schedule for deployment in 2014, would “provide an additional layer of defense against ballistic missiles.”


The next generation of the Arrow, now in the development stage, is set to be deployed in 2016. Called the Arrow 3, it is designed to strike its target outside the atmosphere, intercepting missiles closer to their launch sites. Together, the two Arrow systems would provide two chances to strike down incoming missiles.


Israel also uses U.S.-made Patriot missile defense batteries against mid-range missiles, though these failed to hit any of the 39 Scud missiles fired at Israel from Iraq In the first Gulf War 20 years ago. Manufacturers say the Patriot system has been improved since then.


Middle East News Headlines – Yahoo! News


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Nokia imaging chief to quit












HELSINKI (Reuters) – Nokia‘s long-time imaging chief Damian Dinning has decided to leave the loss-making cellphone maker at the end of this month, the company said in a statement.


The strong imaging capabilities of the new Lumia smartphone models are a key sales argument for the former market leader, which has been burning through cash while losing share in both high-end smartphones and cheaper handsets.












Nokia’s Chief Executive Stephen Elop has replaced most of the top management since he joined in late 2010 and Dinnig is the latest of several executives to leave.


Dinning did not want to move to Finland as part of the phonemakers’ effort to concentrate operations and will join Jaguar Land Rover to head innovations in the field of connected cars, he said on Nokia’s imaging fan site PureViewclub.com.


(Reporting By Tarmo Virki, editing by William Hardy)


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Vampires foil Tooth Fairy, Santa to claim box office win












(Reuters) – Teen vampire film “The Twilight Saga: Breaking Dawn – Part 2″ continued to take a bite out of the domestic box office, drawing $ 64 million in ticket sales over the five-day Thanksgiving holiday weekend to finish ahead of James Bond film “Skyfall.”


After opening with a massive $ 141.1 million last weekend, the finale of the “Twilight” franchise brought in a holiday swarm of fans to see teen favorites Robert Pattinson, Kristen Stewart and Taylor Lautner, pushing “Breaking Dawn” to $ 227 million in total domestic ticket sales.












“Skyfall,” starring Daniel Craig in the 23rd installment of the James Bond franchise, finished second, collecting $ 51 million in weekend ticket sales in the United States and Canada, according to studio estimates compiled by the box office division of Hollywood.com.


“Lincoln,” Steven Spielberg’s historical film on the last days of President Abraham Lincoln, grabbed third with $ 34.1 million over the Wednesday-through-Sunday period.


Making its debut in fourth place with $ 32.6 million was the animated film “Rise of the Guardians,” featuring the voices of Chris Pine and Alec Baldwin as the Tooth Fairy, Santa Claus and other childhood favorites who save the world.


“Life of Pi,” based on Yann Martel’s 2001 best-seller about a boy who survives on a raft with a tiger after his ship sinks, collected $ 30.15 million for a strong fifth-place finish.


“Rise of the Guardians,” produced by Dreamworks Animation for roughly $ 145 million, had been projected by distributor Paramount Pictures to gross $ 35 million in its first five days, according to Box Office Mojo.


Based on “The Guardians of Childhood” book series by children’s author William Joyce, the film will be the last Paramount will release for Dreamworks, whose films will be distributed next year by News Corp’s Fox studio.


Anne Globe, Dreamworks’ chief marketing officer, pointed to “the great parent reactions we’ve seen” to the film, and noting it was among the few choices for families through the end of year, said the studio was “hoping for very long legs through the holidays.”


The Ang Li film “Life of Pi,” on the other hand, performed stronger than expected. “We clearly exceeded our pre-release expectations,” said Chris Aronson, president of domestic distribution for 20th Century Fox.


“We’re seeing word of mouth in action, and a remarkably balanced demographic,” including strong ticket sales among those under 25, he said, adding “Many felt it was impossible to film, but Ang Li pulled it off.”


The remake of the 1984 Cold War film “Red Dawn,” finished seventh with $ 22 million in sales, behind animated feature “Wreck It Ralph”‘s $ 23 million take.


“Red Dawn” arrived at movie theaters four years after it was shot by MGM, but was delayed when the studio filed for bankruptcy in 2010. Last year, MGM decided to digitally alter the villains in the movie, inserting North Koreans instead of Chinese, after Hollywood began courting Chinese companies to help finance its films.


Propelled by the vampires, secret agents, presidents and nursery school favorites, Hollywood ticket sales totaled $ 290 million for the holiday weekend, beating the holiday weekend high mark of $ 273 million recorded in 2009. Hollywood studios often release their biggest holiday films on Wednesday to take advantage of school breaks the day before Thanksgiving.


The continued rush of fans to see teen favorites Pattinson, Stewart and Lautner pushed the “Twilight” installment to $ 227 million in total domestic ticket sales, making it the year’s sixth-largest, according to figures compiled by Box Office Mojo.


“Skyfall” with $ 221.7 million is just behind at number seven, while the year’s box office champ remains “Marvel’s The Avengers,” which has taken in $ 623 million to date.


(Reporting By Ronald Grover)


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First Person: Unemployed, Disabled and Hungry for Work












Five million Americans are among the long-term unemployed–those without a job for 27 weeks or longer–according to the Bureau of Labor Statistics. Another 7.3 million are looking for work, while the unemployment rate sits at 7.9 percent. Numbers aside, individual stories illustrate how America is affected. To see how joblessness hits home, Yahoo News asked unemployed workers to share their job-hunting stories. Here’s one.


FIRST PERSON | I am 40 and live in Racine, Wis. I have been unemployed since I was 33. I try to find work, but I’ve been disabled since 27, and I do not collect Social Security or other income. On job applications, when I am asked if I have any disabilities, I answer yes.












I have even tried to travel to different states for employment. I am seeking employment where I can. I have tried Lowe’s, Home Depot and other similar stores. All I get are letters saying I do not qualify for employment.


By trade, I am a tattoo artist, a job I have been very good at until I became disabled. I have shoulder impingement syndrome, which consists of some of the following: torn ligaments, torn tendons, bone spurs, bursitis and arthritis.


And constant pain. I feel the weather. I hardly sleep. I wish I could be somewhere else, as it is hard on my mind to deal with on a daily basis.


Still, I try to find work where I can in this tough economy, and I am on several lists to be called and never have been called to date.


I am too proud to try to get Social Security. I cannot even afford insurance to get my condition fixed. I even have applied for local state insurance to get the problem resolved so I can work again, always with no luck. So I have remained unemployed now for over 10 years and going.


I injured myself, and I am not able to lift more than 10 pounds at a time or stand or sit for long periods of time.


I just want a job so I can try to cover the medical expenses myself since I cannot get help. Surgery costs are around $ 18,000, which sounds pretty reasonable to me.


I am no stranger to hard work. Since 12, I cut grass, shoveled snow, painted houses and fences, swept chimneys, worked in heat treatment plants with dirt and oil, worked in the casting of hot metals, laid brick, made bathroom sinks, swept floors in factories, did drill-press work, sanding work, and worked at fast food places.


I do not lie to get jobs or hid my injury. I do want to work, but I worry now that my disability will mean I won’t be hired by companies because they’re afraid it will come back on them and their company.


I cannot afford private insurance as I do not have steady income. Now I find whatever I can do to reach my goal of paying for my own surgery.


It is a sad world when you live in pain, day in and day out, and you want and need to find work.


Health News Headlines – Yahoo! News


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Germany rejects Swiss tax deal













Germany’s upper house of parliament has rejected a deal with Switzerland to tax German assets held in Swiss bank accounts.












The deal would have allowed Germans with undeclared assets in Switzerland to avoid punishment by making a one-off payment of between 21% and 41% of the value of their assets.


The deal had been negotiated in April and was due to take effect in January.


But it needed to be ratified by both parliaments.


The rejection by the German upper house, the Bundesrat, prolongs the dispute between the two countries over how to deal with the estimated 180-200bn euros (£145-160bn) of German assets hidden in Switzerland.


German Finance Minister Wolfgang Schaeuble had called for support for the deal, saying: “The agreement tries to find a better solution for a situation which is unsatisfactory.”


But Norbert Walter-Borjans, of the main opposition Social Democrats, told the Bundesrat it was a deal which made “honest taxpayers feel like fools”.


Swiss Finance Minister Eveline Widmer-Schlumpf said her government remained “committed to a successful ratification”.


And the Swiss Bankers Association said in a statement: “The German upper house has missed a major opportunity to reach a fair, optimum and sustainable solution for all parties to definitively settle the bilateral tax issues.”


BBC News – Business


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Egypt reformist warns of turmoil from Morsi decree












CAIRO (AP) — Prominent Egyptian democracy advocate Mohammed ElBaradei warned Saturday of increasing turmoil that could potentially lead to the military stepping in unless the Islamist president rescinds his new, near absolute powers, as the country’s long fragmented opposition sought to unite and rally new protests.


Egypt‘s liberal and secular forces — long divided, weakened and uncertain amid the rise of Islamist parties to power — are seeking to rally themselves in response to the decrees issued this week by President Mohammed Morsi. The president granted himself sweeping powers to “protect the revolution” and made himself immune to judicial oversight.












The judiciary, which was the main target of Morsi’s edicts, pushed back Saturday. The country’s highest body of judges, the Supreme Judical Council, called his decrees an “unprecedented assault.” Courts in the Mediterranean city of Alexandria announced a work suspension until the decrees are lifted.


Outside the high court building in Cairo, several hundred demonstrators rallied against Morsi, chanting, “Leave! Leave!” echoing the slogan used against former leader Hosni Mubarak in last year’s uprising that ousted him. Police fired tear gas to disperse a crowd of young men who were shooting flares outside the court.


The edicts issued Wednesday have galvanized anger brewing against Morsi and the Muslim Brotherhood, from which he hails, ever since he took office in June as Egypt’s first freely elected president. Critics accuse the Brotherhood — which has dominated elections the past year — and other Islamists of monopolizing power and doing little to bring real reform or address Egypt’s mounting economic and security woes.


Oppositon groups have called for new nationwide rallies Tuesday — and the Muslim Brotherhood has called for rallies supporting Morsi the same day, setting the stage for new violence.


Morsi supporters counter that the edicts were necessary to prevent the courts, which already dissolved the elected lower house of parliament, from further holding up moves to stability by disbanding the assembly writing the new constitution, as judges were considering doing. Like parliament was, the assembly is dominated by Islamists. Morsi accuses Mubarak loyalists in the judiciary of seeking to thwart the revolution’s goals and barred the judiciary from disbanding the constitutional assembly or parliament’s upper house.


In an interview with a handful of journalists, including The Associated Press, Nobel Peace laureate ElBaradei raised alarm over the impact of Morsi’s rulings, saying he had become “a new pharaoh.”


“There is a good deal of anger, chaos, confusion. Violence is spreading to many places and state authority is starting to erode slowly,” he said. “We hope that we can manage to do a smooth transition without plunging the country into a cycle of violence. But I don’t see this happening without Mr. Morsi rescinding all of this.”


Speaking of Egypt’s powerful military, ElBaradei said, “I am sure they are as worried as everyone else. You cannot exclude that the army will intervene to restore law and order” if the situation gets out of hand.


But anti-Morsi factions are chronically divided, with revolutionary youth activists, new liberal political parties that have struggled to build a public base and figures from the Mubarak era, all of whom distrust each other. The judiciary is also an uncomfortable cause for some to back, since it includes many Mubarak appointees who even Morsi opponents criticize as too tied to the old regime.


Opponents say the edicts gave Morsi near dictatorial powers, neutering the judiciary when he already holds both executive and legislative powers. One of his most controversial edicts gave him the right to take any steps to stop “threats to the revolution,” vague wording that activists say harkens back to Mubarak-era emergency laws.


Tens of thousands of people took to the streets in nationwide protests on Friday, sparking clashes between anti-and pro-Morsi crowds in several cities that left more than 200 people wounded.


On Saturday, new clashed broke out in the southern city of Assiut. Morsi opponents and members of the Muslim Brotherhood swung sticks and threw stones at each other outside the offices of the Brotherhood‘s political party, leaving at least seven injured.


ElBaradei and a six other prominent liberal leaders have announced the formation of a National Salvation Front aimed at rallying all non-Islamist groups together to force Morsi to rescind his edicts.


The National Salvation Front leadership includes several who ran against Morsi in this year’s presidential race — Hamdeen Sabahi, who finished a close third, former foreign minister Amr Moussa and moderate Islamist Abdel-Moneim Aboul-Fotouh. ElBaradei says the group is also pushing for the creation of a new constitutional assembly and a unity government.


ElBaradei said it would be a long process to persuade Morsi that he “cannot get away with murder.”


“There is no middle ground, no dialogue before he rescinds this declaration. There is no room for dialogue until then.”


The grouping seems to represent a newly assertive political foray by ElBaradei, the former chief of the U.N. nuclear watchdog agency. ElBaradei returned to Egypt in the year before Mubarak’s fall, speaking out against his rule, and was influential with many of the youth groups that launched the anti-Mubarak revolution.


But since Mubarak’s fall, he has been criticized by some as too Westernized, elite and Hamlet-ish, reluctant to fully assert himself as an opposition leader.


The Brotherhood‘s Freedom and Justice political party, once headed by Morsi, said Saturday in a statement that the president’s decision protects the revolution against former regime figures who have tried to erode elected institutions and were threatening to dissolve the constitutional assembly.


The Brotherhood warned in another statement that there were forces trying to overthrow the elected president in order to return to power. It said Morsi has a mandate to lead, having defeated one of Mubarak’s former prime ministers this summer in a closely contested election.


Morsi’s edicts also removed Abdel-Meguid Mahmoud, the prosecutor general first appointed by Mubarak, who many Egyptians accused of not prosecuting former regime figures strongly enough.


Speaking to a gathering of judges cheering support for him at the high court building in Cairo, Mahmoud warned of a “vicious campaign” against state institutions. He also said judicial authorities are looking into the legality of the decision to remove him — setting up a Catch-22 of legitimacy, since under Morsi’s decree, the courts cannot overturn any of his decisions.


“I thank you for your support of judicial independence,” he told the judges.


“Morsi will have to reverse his decision to avoid the anger of the people,” said Ahmed Badrawy, a labor ministry employee protesting at the courthouse. “We do not want to have an Iranian system here,” he added, referring to fears that hardcore Islamists may try to turn Egypt into a theocracy.


Several hundred protesters remained in Cairo’s Tahrir Square Saturday, where a number of tents have been erected in a sit-in following nearly a week of clashes with riot police.


____


Brian Rohan contributed to this report from Cairo.


Middle East News Headlines – Yahoo! News


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HP says products may have been sold to Syria by others












(Reuters) – Hewlett Packard Co said in a letter made public on Friday that its products could have been delivered to Syria through resellers or distributors, but the world’s largest PC maker affirmed it did not sell directly to the country.


The letter was a response to a request from the U.S. Securities and Exchange Commission‘s Office of Global Security Risk that asked whether HP’s products were sold in countries where they would be subject to U.S. sanctions.












“We are aware of November 2011 news reports that your equipment was installed by the Italian company, Area SpA, in Syria as part of a nationwide surveillance and tracking system designed to monitor people in that country,” the SEC wrote in its request.


“Please describe to us the nature, duration, and extent of your past, current, and anticipated contacts with Syria and Iran, whether through subsidiaries, distributors, resellers, vendors, retailers, or other direct or indirect arrangements.”


In a letter dated October 9, HP said it had not authorized the sale of products to Syria.


Instead, HP said the Italian surveillance company had likely obtained its products from an HP partner that was unaware of their ultimate destination.


In another October 9 letter to the agency, HP said it ended its contract with Area SpA in April.


Calls to HP seeking further comment were unanswered as were calls to Area SpA.


HP’s overseas subsidiaries ended sales of printers and related supplies to third-party distributors and resellers with customers in Iran in early 2009, the company wrote.


But because its products are often sold by others through indirect channels without its knowledge or consent “it is always possible that products may be diverted to Iran or Syria after being sold to channel partners, such as distributors and resellers,” HP said.


Reuters has documented how banned computer equipment from U.S. companies has made its way to Iran’s largest telecommunications company through China-based ZTE.


Networking equipment maker Cisco Systems Inc has since cut its ties to ZTE.


HP said in both letters that it would continue to work with ZTE, but it had conducted an internal investigation relating to an alleged sale of its products to MTN Irancell, Iran’s second largest mobile carrier.


The company was also asked about EDS – an IT outsourcing company that HP bought in 2008 – and any activity in Iran, Syria and Sudan.


HP said it had the same policy regarding Sudan as it did on sales to Iran or Syria.


HP is eager to avoid more negative publicity after surprising the market on Tuesday with an $ 8.8 billion write-down on its $ 11.1 billion acquisition of software group Autonomy, accusing the British company of improper accounting to inflate sales.


Autonomy has denied any wrongdoing.


(Reporting by Nicola Leske in New York. Editing by Leslie Gevirtz and Andre Grenon)


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