France urges Mali to step up talks with rebels

PARIS (AP) — France‘s president called Thursday for stepped-up talks between Mali’s government and any leaders from its breakaway north “who reject terrorism,” even as African nations geared up for a possible military operation against Islamic extremists there.

President Francois Hollande‘s comments suggested a growing openness to dialogue with the extremists, but he remained committed to supporting the military planning effort.

Northern Mali fell to Islamic extremists in April, after coup leaders toppled the government in Bamako, Mali‘s capital. Fearing that northern Mali could become the latest hotbed of terrorism, France has been a driving force in international efforts to bolster Mali’s army to drive the Islamists from power.

Hollande spoke with interim Mali President Dioncounda Traore by phone on Thursday, partly to detail European efforts to help strengthen Mali’s army.

In recent days, representatives from the most moderate of three al-Qaida-linked groups that control northern Mali have been meeting with Burkina Faso‘s president, appointed as a mediator.

“France reiterates its wish that political dialogue will intensify between Malian authorities and representatives of northern populations who reject terrorism,” Hollande’s office said in a statement. “The acceleration of this dialogue must accompany the progress in African military-planning efforts.”

Earlier this week, the African Union approved a plan that calls for 3,300 African troops to be deployed in order to win back Mali’s north. European countries including France and Germany have expressed a willingness to provide military trainers and logistics support, but have stopped short of committing combat troops.

France, like many European countries, fears that the arid, northern Sahel region of Mali could become a breeding ground for terrorism, where al-Qaida and its allies could plot hostage-takings and attacks in Europe or beyond.

France has millions of people whose families hail from former French colonies in north and west Africa. Authorities have long been concerned that French-born militants could travel abroad for terrorism training and return home later to possibly carry out attacks.

French authorities are already investigating two French citizens who were arrested in Mali and neighboring Niger and are suspected of seeking to join up with the al-Qaida-linked extremists, a judicial official told The Associated Press.

Ibrahim Ouattara, a 24-year-old native of the northern Paris suburb of Aubervilliers who has dual French and Malian nationality, was arrested inside Mali this month and remains in custody there, the official said.

Separately, a 27-year-old Frenchman was arrested in August in Niger and has since been handed over to authorities in France, the official said, speaking on condition of anonymity because she was not authorized to discuss terrorism cases publicly.

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Why David Geffen is getting the “American Masters” treatment

LOS ANGELES (TheWrap.com) – David Geffen is not a singer. Nor is he a movie star. Nor is he a writer.

Thus he would seem an odd subject for “American Masters,” a series devoted to artists ranging from Willa Cather to Woody Allen.

Yet series creator Susan Lacy claims that the mogul has had a profound impact on American popular culture that equals any of those figures. She pleads her case in “Inventing David Geffen,” which will be broadcast November 20 on PBS. The documentary had its premiere in Los Angeles on Tuesday night.

“He seems like a bit of an odd choice,” Lacy admitted to TheWrap. “But I have a degree in American Studies and I learned that the people with the most influence are often the ones behind the scenes.”

In Geffen, Lacy saw a figure like Alfred Stieglitz, a photographer whose lasting legacy was a series of modernist shows he held at his New York galleries that influenced visual arts in this country and brought cubism to the masses.

Some arm twisting must have been required to get the press-averse Geffen to emerge from semi-retirement to reflect on his career in movies, music and Broadway. Lacy said that part of the reason she was able to convince him to participate is that he was a fan of the series and had participated in her documentaries on figures such as Joni Mitchell.

“It wasn’t hard,” she said. “I knew from other people that he thinks my Leonard Bernstein documentary is one of the best documentaries anyone ever made. Mike Nichols told me that he makes everybody who stays with him watch it.”

In addition to Geffen, the documentary features interviews with his friends and colleagues — an A-list rolodex that includes Tom Hanks, Steven Spielberg, Elton John, Neil Young, Clive Davis, Barry Diller, and Irving Azoff. His sphere was huge, Lacy claims because his influence was tectonic.

By championing musicians such as Jackson Browne and Laura Nyro, Geffen put his own imprint on the emerging singer-songwriter movement in the 1970s. Later, Geffen managed to adapt to shifting tastes, by aligning himself with groups like Aerosmith and Guns ‘N Roses and helping to usher in the heavy metal craze. For more than 30 years, his labels – Asylum Records, Geffen Records, and DGC Records – represented the high-water mark for musicians, who clamored to get in the door.

“He had an incredible eye for talent,” Lacy said. “These people would have eventually found their way. But he helped them get there. He fixed their teeth and allowed them to write music that’s history.”

Though he made his name in music, Geffen also became a force in the theater and film businesses.

He enriched himself by producing hit musicals like “Cats” and “Dreamgirls,” and branched out into movies with memorable pictures like “Risky Business.” In 1994, he co-founded DreamWorks SKG, the studio behind Oscar-winners like “American Beauty” and “Saving Private Ryan.”

“In each decade, he has done something that has affected the culture,” Lacy said. “If I had to boil it down to one thing it would be his genius at business.”

It’s a mastery of deal-making and talent-scouting that has made him a very wealthy man, worth an estimated $ 5.5 billion. It is also a trajectory that Lacy maintains cannot be replicated in a more fractured media landscape, where mega-corporations wield disproportionate influence and are more interested in quarterly earnings than fostering rising stars.

“Even he would say that nobody could do what he did today,” Lacy said. “The times have changed so much. I asked him if he could raise $ 2 billion to start a new studio, and he said ‘absolutely not.’ And record companies, well, we know what happened to them. Behind all the conglomerates and corporations, to find someone with a genuine sensibility like David Geffen‘s would be impossible. He was unique.”

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Wormy Monkeys Had Healthier Intestines

Click here to listen to this podcast

In developed countries, we’ve mostly eliminated freeloaders like parasitic worms from our guts. But we also have the highest rates of inflammatory bowel disease, or IBD—when the immune system mistakenly attacks intestinal cells and friendly gut bacteria.

For years, docs suspected there might be a connection between IBD and our worm-free lifestyle. And a handful of studies have actually shown that infecting human patients with worms can reduce symptoms of the disease. But how?

To find out, researchers fed parasitic worm eggs to monkeys with chronic diarrhea and gut inflammation—similar to IBD. After infection, the monkeys’ immune systems kicked into high gear, pumping out more mucus than usual to fight the worms. But that response also helped heal the monkeys’ intestines—restoring healthy, diverse populations of gut bacteria and decreasing the diarrhea. Those results appear in the journal PLoS Pathogens. [Mara Jana Broadhurst et al, Therapeutic Helminth Infection of Macaques with Idiopathic Chronic Diarrhea Alters the Inflammatory Signature and Mucosal Microbiota of the Colon]

The researchers already have FDA approval to study the worms in human subjects. Interested patients can go to clinicaltrials.gov to sign up—and hopefully worm their way out of intestinal distress.

—Christopher Intagliata

[The above text is a transcript of this podcast]
 

Follow Scientific American on Twitter @SciAm and @SciamBlogs. Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2012 ScientificAmerican.com. All rights reserved.

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Asian stocks mixed on Europe, US woes; Japan gains

BANGKOK (AP) — Asian stock markets were mixed Friday after data showed Europe slipped back into recession and several big U.S. retailers disappointed investors with weak forecasts.

The European Union‘s statistics agency said Thursday that the combined economy of the 17 countries that use the euro contracted 0.1 percent in the third quarter from the previous quarter. Surveys pointing to difficult conditions ahead suggest the recession could deepen.

“Although unsurprising, data in Europe confirmed that the region fell back into recession, an outcome that will do little to ease tensions,” analysts at Credit Agricole CIB in Hong Kong said in an email commentary.

Hong Kong’s Hang Seng rose 0.3 percent to 21,171.28. South Korea‘s Kospi fell 0.5 percent to 1,860.92. Australia‘s S&P/ASX 200 lost 0.2 percent to 4,339.40. Benchmarks in Taiwan, New Zealand and mainland China fell. Singapore, Thailand and the Philippines rose.

Japan‘s Nikkei 225 stock index jumped 1.8 percent to 8,990.80, rallying for a second straight day on expectations that the opposition Liberal Democratic Party may win elections next month and pursue more aggressive stimulus policies than the current leadership.

LDP leader Shinzo Abe has said he is determined to push for such policies and to find ways to weaken the yen, whose strength against other currencies has hammered exporters.

Stan Shamu, strategist at IG Markets in Melbourne, said Abe wants an inflation target of between 2 and 3 percent as a way to cheapen the Japanese currency, perhaps by printing yen or bulking up on purchases of assets like Japanese government bonds. Still, the target might be difficult to achieve, given the economy’s weakness, he said.

“With such a big export economy, the yen has massive significance on how the local economy performs,” Shamu said.

Japan’s exporters, whose fortunes are linked to the yen’s valuation, were buoyed by the prospect of a changing of the guard. Mazda Motor Corp. soared 8.9 percent. Nissan Motor Co. jumped 5.8 percent. Nikon Corp. surged 6.9 percent and Canon Inc. gained 5 percent.

In Australia, Whitehaven Coal fell 1.4 percent after announcing it would scale back some operations due to the decline in global coal prices.

In the U.S., investors were dealt dual blows: worse-than-expected revenue from global retailing giant Wal-Mart and data showing that manufacturing weakened in the Philadelphia and New York regions, reflecting damage from Superstorm Sandy.

Wal-Mart, Ross Stores and Limited Brands, the owner of Victoria’s Secret, also disappointed investors by issuing profit forecasts that fell short of expectations.

The Dow Jones industrial average closed down 0.2 percent to 12,542.38. The Standard & Poor’s 500 index fell 0.2 percent to 1,353.33. The Nasdaq composite index lost 0.4 percent to 2,836.94.

Benchmark oil for December delivery was up 10 cents to $ 85.55 in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to close at $ 85.45 a barrel in New York on Thursday.

In currencies, the dollar weakened to 81.09 yen from 81.21 yen late Thursday in New York. The euro fell to $ 1.2769 from $ 1.2773.

___

Follow Pamela Sampson on Twitter at http://twitter.com/pamelasampson

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Egypt recalls envoy to Israel after Gaza strike

CAIRO (AP) — Egypt has recalled its ambassador to Israel after an Israeli airstrike killed the military commander of Gaza‘s ruling Hamas.

In a statement read on state TV late Wednesday, spokesman Yasser Ali said that President Mohammed Morsi recalled the ambassador and asked the Arab League‘s Secretary General to convene an emergency ministerial meeting in the wake of the Gaza violence.

Morsi also called for an immediate cease fire between Israel and Hamas, an offshoot of Morsi’s Muslim Brotherhood. Israel says it struck in response to rocket attacks from Gaza.

Hours earlier, Morsi’s Muslim Brotherhood group denounced the Israeli airstrike as a “crime that requires a quick Arab and international response to stem these massacres.”

Relations between Israel and Egypt have deteriorated since longtime President Hosni Mubarak was ousted last year.

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RIM CEO sees new BlackBerry powering growth

WATERLOO, Ontario (Reuters) – A new line of BlackBerry 10 devices will provide Research In Motion with a framework for growth over the next decade, offering long-term value for unhappy shareholders, Chief Executive Thorsten Heins said on Wednesday.

In an interview with Reuters, Heins said RIM had identified $ 800 million of the $ 1 billion of savings it promised for the financial year ending in early March, and was confident of finding the rest as it gets ready to launch the new phones.

RIM is betting that the new smartphones will help it claw back the market share it has lost to the likes of Apple Inc’s iPhone and devices powered by Google’s Android operating system.

Both consumers and corporate customers have abandoned the BlackBerry in droves, even though the devices offer security features that rivals have been unable to match.

“There’s this high-level security that you cannot walk away from, and then there’s ‘good enough’ security,” Heins said in an interview at RIM’s Waterloo, Ontario, campus, a sprawl of low-rise buildings.

But analysts remain skeptical, especially after the botched 2011 launch of RIM’s PlayBook tablet computer, which the company had hoped would compete with Apple’s wildly popular iPad. The PlayBook had top-of-the-line hardware, but its software was far from complete at the launch and needed multiple updates.

RIM delayed the roll-out of the BlackBerry 10 phones to the first quarter of 2013 so as not to repeat the errors that surrounded the PlayBook launch.

Heins said the delay was the correct decision – the way to ensure the BB10 phones are a high-quality product rather than a rushed one that would not meet customer expectations.

“I think it’s all lining up. Sometimes you get the feeling that the universe is in disarray, and with BlackBerry 10 coming, I see the stars lining up,” Heins said.

SLEEK DEMO MODELS

Sleek demo models of the new phones look much like the high-end smartphones in the market today, and company executives proudly showed off a touch-screen version and a version with the miniature QWERTY keyboard popular with many BlackBerry users.

Users flick a thumb or finger to maneuver from one program to another and can sneak a look at an incoming email while browsing the Internet or using other applications, a multi-tasking ability that RIM says rival devices lack.

Personal and business profiles can be kept separately, something RIM calls BlackBerry Balance. Corporations can erase only their share of the data on a device if they need to do so for security reasons, leaving personal photos, contacts and emails untouched.

The app library available at launch will not match the vast number available on other devices. Heins said RIM had chosen to focus on providing those apps needed in different regional markets. It expects some 100,000 apps to be ready at launch.

The developer community has been broadly enthusiastic about the devices. But financial analysts have mixed views on their likely reception in an ultra-competitive market.

Pacific Crest analyst James Faucette warned last week that BlackBerry 10 is likely to be dead on arrival – with an operating system that gets “a lukewarm response at best,” due to the unfamiliar user interface and a shortage of apps.

SHAREHOLDER VALUE

Heins insisted morale was high at the company, despite 5,000 job cuts and a rapidly sliding market share ahead of the launch of the new phones.

RIM’s share price is down more than 90 percent from a 2008 peak of about $ 148. It has fallen even after Heins, a former Siemens AG executive, took over in January. The shares on Wednesday closed at $ 8.49 on Nasdaq.

“The message to our shareholders is that we understand this is and has been a difficult time for them and for us,” the tall, bespectacled CEO said. “But with the development of the BlackBerry 10 platform we are truly convinced that we will create long-term value for RIM’s shareholders and investors.”

RIM has already given the demo phones to developers and to carriers, and its new BlackBerry Enterprise Server 10, which runs the devices on corporate networks, is in beta testing with 20 key customers — both government agencies and corporates.

Next month, the company will give more than 50 top enterprise customers technical previews of both BES 10 and the devices.

Heins said the feedback he is getting from the customer base “is very encouraging.”

With the erosion of RIM’s base particularly strong in North America, there has been speculation the company could choose to launch the new phones in a region where the phones remain popular. Heins said that would not be the case.

“We cannot launch every carrier and every country on the same day, but what we have defined is a set of waves in the various regions,” he said. “It is going to be a global launch. There isn’t one preferred region. We are managing and planning it as we speak.”

(Reporting by Euan Rocha and Janet Guttsman; Editing by Frank McGurty and Leslie Adler)

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Judge throws out Justin Bieber paparazzo chase case

LOS ANGELES (Reuters) – Criminal charges filed against a photographer who pursued teen pop star Justin Bieber at high speeds on a Los Angeles freeway in July were thrown out on Wednesday, striking a blow to California’s crackdown on overly aggressive paparazzi.

Celebrity photographer Paul Raef was the first person to be prosecuted under the state’s 2010 law that criminalizes dangerous driving when taking photos commercially.

Raef was charged in July with two counts of violating the law stemming from a July 6 incident on a freeway in Los Angeles‘ San Fernando Valley.

Dismissing the charges, Los Angeles Superior Court Judge Thomas Robinson called the state’s anti-paparazzi law “problematic” and “overly inclusive.”

The law “sweeps very widely and would increase the penalties for reckless driving” in unintended cases, Robinson said.

Robinson faulted the law’s vague definition of commercial photography, saying that it could also apply to a photographer who was speeding to reach an arranged photo shoot with Bieber.

Raef could have faced up to a year in prison and $ 3,500 in fines, if convicted. His attorney, Brad Kaiserman, said the law is “about protecting celebrities.”

A message left with Bieber’s publicist requesting comment was not immediately returned.

Raef still faces lesser charges of misdemeanor reckless driving and failing to obey police orders after he allegedly pursued Bieber, 18, at high speeds. He will be tried on those charges at a later date.

Bieber, who was pulled over by police for driving 80 miles per hour in a 65 mph zone, told officers at the time that he was being hounded by paparazzi, and police said they noticed Raef’s car following the “Boyfriend” singer.

About 30 minutes after the traffic stop, Bieber called police to report that Raef continued to follow him. Police later found Raef and other paparazzi together in downtown Los Angeles.

The Canadian singer received a speeding ticket at the time.

(Reporting By Eric Kelsey, editing by Jill Serjeant and Sandra Maler)

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Accused Colorado gunman tried to harm himself: reports

CENTENNIAL, Colo. (Reuters) – Accused Colorado theater gunman James Holmes was taken to the hospital on Tuesday for a medical condition that left him unable to attend a court hearing set for two days later, his lawyers said, with local media reporting he had tried to harm himself.

The lawyers, explaining in vague terms in an emergency hearing on Wednesday the sudden developments that sent him to the hospital, requested a delay in a routine pre-trial hearing due on Thursday. There was no word on Holmes’ current condition.

“What occurred was midday yesterday. We were informed of a situation that involved a trip to a hospital,” Holmes’ attorney Tamara Brady said in court, giving scant further details but adding, “It’s not as simple as a migraine.”

Holmes, a 24-year-old former neuroscience graduate student, is accused of opening fire inside a suburban Denver movie theater during a midnight screening of the movie “The Dark Knight Rises” in July, killing 12 people and wounding 58 others.

The rampage was one of the bloodiest acts of gun violence in the United States in recent years.

Law enforcement sources told local television station CBS4 that Holmes made multiple “half-hearted” suicide attempts over the past few days, including one in which he ran into a wall in his jail cell and another in which he jumped off his bed.

Another local television station, ABC7, reported that Holmes was hospitalized after intentionally pounding his head on the walls and floor of his cell.

The station quoted sources familiar with the case as saying his actions were an indication of Holmes’ mental state, but did not constitute suicide attempts.

A judge approved the emergency defense request for a delay in the case, and set a new hearing for December 10. Holmes’ lawyers, in filing their request, did not provide details of Holmes condition, citing legal, medical and psychological privilege.

INSANITY DEFENSE?

“As a result of developments over the past 24 hours, Mr. Holmes is in a condition that renders him unable to be present in court for tomorrow’s hearing,” Holmes’ lawyers wrote in the delay motion.

Another of Holmes’ attorneys, public defender Daniel King, did not respond to reporters who asked if Holmes was still in the hospital.

Prosecutors had earlier objected to a delay, saying it should be denied unless more detailed information was provided on Holmes’ condition than was contained in the defense request.

“It is not clear whether it is claimed he is suffering from a physical medical condition, a mental condition, whether he is suffering from a negative emotional reaction to his circumstances, or anything other than he has some kind of ‘condition,’” prosecutors wrote in their response.

Prosecutors have depicted Holmes as a young man whose once promising academic career was in tatters at the time of the shooting. He failed oral board exams for graduate school in June and a professor suggested he may not have been a good fit for his competitive doctorate program.

Holmes then began a voluntary withdrawal from the school and amassed an arsenal of weapons as part of “a detailed and complex” plan to commit mass murder, prosecutors charge.

Holmes has yet to enter a plea in the case, and prosecutors have not indicated whether they will seek the death penalty.

Holmes’ lawyers, who analysts have suggested may be laying the groundwork for an insanity defense, have said Holmes suffers from mental illness and sought to get help before the shooting.

Arapahoe County Sheriff Grayson Robinson, asked about Holmes’ condition, told Reuters he could not release any information, citing privacy issues and jail security.

(Writing and additional reporting by Mary Slosson; Editing by Cynthia Johnston, Jim Loney and Peter Cooney)

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French CEOs: ‘Help!’

When some German politicians called on French President François Hollande recently to step up the pace of economic reform in France, Finance Minister Wolfgang Schäuble sprang to Hollande’s defense in Berlin, saying it was wrong to call Europe’s second-largest economy the “sick man” of the region.

The heads of France’s biggest companies do not agree. Over the past few weeks, an extraordinary cry of alarm has risen from chief executives who warn that the French economy has gone dangerously off track. In an interview to be published on Nov. 15 in the magazine l’Express, Chief Executive Officer Henri de Castries of financial-services group Axa (CS:FP) warns that France is rapidly losing ground, not only against Germany but against nearly all its European neighbors. “There’s a strong risk that in 2013 and 2014, we will fall behind economies such as Spain, Italy, and Britain,” de Castries says.

On Nov. 5, veteran corporate chieftain Louis Gallois released a government-commissioned report calling for “shock treatment” to restore French competitiveness. And on Oct. 28, a group of 98 CEOs published an open letter to Hollande that said public-sector spending, which at 56 percent of gross domestic product is the highest in Europe, “is no longer supportable.” The letter was signed by the CEOs of virtually every major French company. (The few exceptions included utility Electricité de France, which is government controlled.)

The outcry is unusual for France Inc., which has tended to lobby behind the scenes and avoid public criticism of the government. That’s perhaps not surprising, since many CEOs attended the same schools as the country’s top politicians and often worked in government before going into business. De Castries was a classmate of Hollande’s at the elite Ecole Nationale d’Administration; Serge Weinberg, chairman of pharmaceutical giant Sanofi (SAN:FP) and a signatory of the Oct. 28 letter, used to work for Socialist Foreign Minister Laurent Fabius.

The problems they’re complaining about aren’t new. Heavy taxes and social charges required to support high government spending have eroded corporate profitability. In the l’Express interview, de Castries says that on average, the government charges incurred by his company for each employee are more than double the employee’s take-home pay. French labor costs are the second-highest in Europe, after Belgium, as companies are burdened with rigid and devilishly complicated work rules. No surprise, then, that operating margins at French companies have shrunk almost 40 percent over the past decade, while those of companies in Germany—where painful labor-market reforms were carried out—have risen about 40 percent.

With Europe mired in economic crisis, the French citizenry is now reaping the bitter results. Companies are shedding workers, pushing unemployment to a 13-year high of more than 10 percent, almost twice Germany’s rate. After three quarters of flat growth, the economy looks to be tipping into recession.

At the same time, the crisis has pushed other European governments—Italy’s, for example—to carry out long-overdue reforms. As Gallois put it in his report, France has become “unhooked” from the broader economic realities. Gallois listed 22 recommendations, including a €30 billion ($ 38 billion) reduction in payroll taxes, loosening of labor laws, and the lifting of a ban on shale-gas exploration.

Hollande’s government didn’t respond to most of the recommendations but said it would enact temporary tax credits for business totaling €20 billion over three years. Corporate bosses are not impressed. A temporary credit will not “structurally diminish the cost of labor” or reduce administrative burdens on business, Michel Landel, CEO of food-service group Sodexo (SW:FP), said in a Nov. 10 radio interview.

Businesses also fret that the process of applying for tax credits will add to already burdensome paperwork. “The first thing they do is to complicate the mechanism for lowering the social charges,” de Castries laments in the l’Express interview.

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General investigated for emails to Petraeus friend

PERTH, Australia (AP) — In a new twist to the Gen. David Petraeus sex scandal, the Pentagon said Tuesday that the top American commander in Afghanistan, Gen. John Allen, is under investigation for alleged “inappropriate communications” with a woman who is said to have received threatening emails from Paula Broadwell, the woman with whom Petraeus had an extramarital affair.

Defense Secretary Leon Panetta said in a written statement issued to reporters aboard his aircraft, en route from Honolulu to Perth, Australia, that the FBI referred the matter to the Pentagon on Sunday.

Panetta said that he ordered a Pentagon investigation of Allen on Monday.

A senior defense official traveling with Panetta said Allen’s communications were with Jill Kelley, who has been described as an unpaid social liaison at MacDill Air Force Base, Fla., which is headquarters to the U.S. Central Command. She is not a U.S. government employee.

Kelley is said to have received threatening emails from Broadwell, who is Petraeus’ biographer and who had an extramarital affair with Petraeus that reportedly began after he became CIA director in September 2011.

Petraeus resigned as CIA director on Friday.

Allen, a four-star Marine general, succeeded Petraeus as the top American commander in Afghanistan in July 2011.

The senior official, who discussed the matter only on condition of anonymity because it is under investigation, said Panetta believed it was prudent to launch a Pentagon investigation, although the official would not explain the nature of Allen’s problematic communications.

The official said 20,000 to 30,000 pages of emails and other documents from Allen’s communications with Kelley between 2010 and 2012 are under review. He would not say whether they involved sexual matters or whether they are thought to include unauthorized disclosures of classified information. He said he did not know whether Petraeus is mentioned in the emails.

“Gen. Allen disputes that he has engaged in any wrongdoing in this matter,” the official said. He said Allen currently is in Washington.

Panetta said that while the matter is being investigated by the Defense Department Inspector General, Allen will remain in his post as commander of the International Security Assistance Force, based in Kabul. He praised Allen as having been instrumental in making progress in the war.

The FBI’s decision to refer the Allen matter to the Pentagon rather than keep it itself, combined with Panetta’s decision to allow Allen to continue as Afghanistan commander without a suspension, suggested strongly that officials viewed whatever happened as a possible infraction of military rules rather than a violation of federal criminal law.

Allen was Deputy Commander of Central Command, based in Tampa, prior to taking over in Afghanistan. He also is a veteran of the Iraq war.

In the meantime, Panetta said, Allen’s nomination to be the next commander of U.S. European Command and the commander of NATO forces in Europe has been put on hold “until the relevant facts are determined.” He had been expected to take that new post in early 2013, if confirmed by the Senate, as had been widely expected.

Panetta said President Barack Obama was consulted and agreed that Allen’s nomination should be put on hold. Allen was to testify at his confirmation hearing before the Senate Armed Services Committee on Thursday. Panetta said he asked committee leaders to delay that hearing.

NATO officials had no comment about the delay in Allen’s appointment.

“We have seen Secretary Panetta‘s statement,” NATO spokeswoman Carmen Romero said in Brussels. “It is a U.S. investigation.”

Panetta also said he wants the Senate Armed Services Committee to act promptly on Obama’s nomination of Gen. Joseph Dunford to succeed Allen as commander in Afghanistan. That nomination was made several weeks ago. Dunford’s hearing is also scheduled for Thursday.

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Associated Press writer Slobodan Lekic in Kabul, Afghanistan, contributed to this report.

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