Did Google Earth error send murderer to wrong address?

Dennis and Merna Koula.

(Credit:
CBS News.com Screenshot by Chris Matyszczyk/CNET)

Sometimes, even after a murder conviction, some see reasonable doubt that the conviction was a righteous one.

Such is the case in the murder of Dennis and Merna Koula in La Cross, Wisc, a quiet community.

Their son Eric was found guilty and is currently serving two consecutive life-sentences for the murder of the wealthy couple.

It was Eric Koula who found the body. It was Eric Koula whose alibi didn't stand up. Eric Koula was broke.

Yet as CBS News' "48 Hours" reported, there are some inconsistencies that some can't quite put aside. They include John Christophersen, a special agent at the time with the Wisconsin Department of Justice.

It was said at the trial that Eric Koula treated his father as an ATM. There was a $50,000 check that he cashed right after his parents died.

It was a check from his father. Eric Koula had forged the signature -- something he claimed to have done many times.

But, as his attorney said at the trial: "What sort of an idiot would put a check in the bank the morning after they killed their parents, knowing that bank records are easy to get?"

To some eyes, the murder seemed like a professional hit. No valuables were taken. And there was no DNA evidence to implicate Eric Koula.

Moreover, there was another idea that investigators began to pursue at the time. A neighbor of the Koula's, Steve Burgess, freely admitted that he had received death threats. He was the president of a local bank.

More Technically Incorrect

And, as the CBS News investigation indicated (embedded, but there are some gaps in the audio), if you use Google Earth to locate Burgess' house, you get a surprise.

"48 Hours" correspondent Peter Van Sant said: "In fact, when you Google Earth Steve Burgess' address...the zoom into the house goes to the Koula's house, not to Steve Burgess' house."

Police say they discounted the threatening caller, as they located him and he had an alibi. But then could that individual have hired someone to do any allegedly required dirty work, a person who used Google Earth to go to the wrong house?

This story brings to mind the even more recent case of the alleged murder of Rodrigo Diaz. His friends claim that his GPS had led him to the wrong house.

The owner of that house allegedly became annoyed or threatened by the presence of Diaz and his friends. This resulted in Diaz being shot in what lawyers for the accused, Phillip Sailors, say was a case of self-defense.

The jury in the trial of Eric Koula believed there was enough evidence to convict him.

Others look at the evidence they see on Google Earth and still have their doubts.

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Clive Davis Gala goes on year after Houston's death

A year after Whitney Houston's death, music executive Clive Davis remembered her in words -- and video.

Houston died last year at the age of 48 just hours before the annual Clive Davis Gala was set to start. On Saturday, Davis said his world continues "to be so shattered by her passing" and that Houston's death still feels "unreal."

At the gala, Davis played what he called a rare performance of Houston belting "All The Man That I Need" at the Beverly Hilton Hotel.

Houston's brother and sister-in-law, Gary and Pat Houston, attended the gala, where Davis thanked them "for being here tonight." He also called Houston the "greatest, greatest singer of our lifetime."

58 Photos

Grammy Awards 2013: Pre-parties

Dutch electronic artist Afrojack kicked off the performances with a DJ set, but it was Gladys Knight who got the crowd up out of their seats with a closing number featuring renditions of "Neither One of Us" and "Midnight Train to Georgia."

Usher, too, brought R&B flavor to the stage when he performed some of "Burn" and "Climax," which featured the acoustic guitar.

The pre-Grammy event also featured performances by Patti Smith, Scottish singer Emeli Sande, best new artist nominees the Lumineers, song of the year nominee Miguel, and Jennifer Hudson, who paid tribute to Knight and performed with the singing veteran.

The event was full of A-listers there to enjoy the live music: Johnny Depp, Quincy Jones, Sting, Joni Mitchell, Diddy, Miley Cyrus, Frank Ocean, Dave Grohl, Magic Johnson and San Francisco 49ers quarterback Colin Kaepernick were in attendance as well as Ne-Yo, Carly Rae Jepsen, Brandy, David Guetta, Babyface, Wiz Khalifa, Jordin Sparks, Tyra Banks and dozens of others.

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$1M Reward for Capture of Fugitive Ex-Cop Dorner

A $1 million reward was offered today for information leading to the arrest of Christopher Dorner, as authorities in Big Bear, Calif., scaled back their search for the disgruntled ex-cop, who is suspected in three revenge killings.

"This is the largest local reward ever offered, to our knowledge," Los Angeles Police Chief Charlie Beck said at a news conference today. "This is an act of domestic terrorism. This is a man who has targeted those that we entrust to protect the public. His actions cannot go unanswered."

The money for the reward was pooled by businesses, government, local law enforcement leaders and individual donors, Beck said.

PHOTOS: Former LAPD Officer Suspected in Shootings

The reward comes on the fourth day of a manhunt for Dorner, who has left Southern California on edge after he allegedly went on a killing spree last week to avenge his firing from the police force. Dorner outlined his grievances in a 6,000 word so-called "manifesto" and said he will keep killing until the truth is known about his case.

Dorner's threats have prompted the LAPD to provide more than 50 law enforcement families with security and surveillance detail, Beck said.

Authorities are chasing leads, however they declined to say where in order to not impede the investigation.

Dorner's burned-out truck was found Thursday near Big Bear Lake, a popular skiing destination located 80 miles northeast of Los Angeles.

Irvine Police Department/AP Photo

Manhunt for Alleged Cop Killer Heads to California Mountains Watch Video

Christopher Dorner Search: Officials Search for Ex-officer in the Mountains Watch Video

Investigators found two AR-15 assault rifles in the burned-out truck Dorner abandoned, sources told ABC News.

The truck had a broken axle, which may be the reason he decided to set fire to it, the police sources said.

Full Coverage: Christopher Jordan Dorner

Officers have spent the past couple of days going door-to-door and searching vacant cabins. The manhunt was scaled back to 25 officers and one helicopter in the resort town today, according to the San Bernadino Sheriff's Office.

On Saturday, Beck announced he would reopen the investigation into Dorner's firing but said the decision was not made to "appease" the fugitive ex-cop.

"I feel we need to also publicly address Dorner's allegations regarding his termination of employment, and to do so I have directed our Professionals Standards Bureau and my Special Assistant for Constitutional Policing to completely review the Dorner complaint of 2007; To include a re-examination of all evidence and a re-interview of witnesses," Beck said. "We will also investigate any allegations made in his manifesto which were not included in his original complaint."

Dorner is suspected of killing Monica Quan and her fiancé Keith Lawrence last Sunday in their car in the parking lot of their Irvine, Calif., condominium complex. Both were struck with multiple gunshot wounds.

Quan's father, Randall Quan, was a retired captain with the LAPD and attorney who represented Dorner before a police review board that led to Dorner's dismissal from the force in 2008.

On Wednesday, after Dorner was identified as a suspect in the double murder, police believe he ambushed two Riverside police officers, killing one and wounding the other.

The next day, Randall Quan reported he received a taunting call from a man claiming to be Dorner who told him that he "should have done a better job of protecting his daughter," according to court documents documents.

Anyone with information leading to the arrest of Christopher Dorner is asked to call the LAPD task force at 213-486-6860.

ABC News' Dean Schabner, Jack Date, Pierre Thomas, Jason Ryan and Clayton Sandell contributed to this report.

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Israel's Lieberman says Palestinian peace accord impossible

JERUSALEM (Reuters) - Israel has no chance of signing a permanent peace accord with the Palestinians and should instead seek a long-term interim deal, the most powerful political partner of Prime Minister Benjamin Netanyahu said on Saturday.

The remarks by Avigdor Lieberman, an ultranationalist whose joint party list with Netanyahu narrowly won a January 22 election while centrist challengers made surprise gains, seemed designed to dampen expectations at home and abroad of fresh peacemaking.

A spring visit to Israel and the Palestinian territories by U.S. President Barack Obama, announced this week, has stirred speculation that foreign pressure for a diplomatic breakthrough could build - though Washington played down that possibility.

In a television interview, ex-foreign minister Lieberman linked the more than two-year-old impasse to pan-Arab political upheaval that has boosted Islamists hostile to the Jewish state.

These include Hamas, rivals of U.S.-backed Palestinian President Mahmoud Abbas, who control the Gaza Strip and spurn coexistence with Israel though they have mooted extended truces.

"Anyone who thinks that in the center of this socio-diplomatic ocean, this tsunami which is jarring the Arab world, it is possible to arrive at the magic solution of a comprehensive peace with the Palestinians does not understand," Lieberman told Israel's Channel Two.

"This is impossible. It is not possible to solve the conflict here. The conflict can be managed and it is important to manage the conflict ... to negotiate on a long-term interim agreement."

Abbas broke off talks in late 2010 in protest at Israel's settlement of the occupied West Bank. He angered Israel and the United States in November by securing a U.N. status upgrade that implicitly recognized Palestinian independence in all the West Bank, East Jerusalem and Gaza.

Israel insists it will keep East Jerusalem and swathes of West Bank settlements under any eventual peace deal. Most world powers consider the settlements illegal because they take up land seized in the 1967 Middle East war.

Lieberman, himself a West Bank settler, said the ball was "in Abu Mazen's (Abbas') court" to revive diplomacy.

Abbas has demanded Israel first freeze all settlement construction. With two decades gone since Palestinians signed their first interim deal with Israel, he has ruled out any new negotiations that do not solemnize Palestinian statehood.

Netanyahu's spokesman Mark Regev noted that Lieberman, in the Channel Two interview, had said he was expressing his own opinion.

Asked how Netanyahu saw peace prospects for an accord with the Palestinians, Regev referred to a speech on Tuesday in which the conservative prime minister said that Israel, while addressing threats by its enemies, "must also pursue secure, stable and realistic peace with our neighbors".

Netanyahu has previously spoken in favor of a Palestinian state, though he has been cagey on its borders and whether he would be prepared to dismantle Israeli settlements.

Lieberman's role in the next coalition government is unclear as he faces trial for corruption. If convicted, he could be barred from the cabinet. Lieberman denies wrongdoing and has said he would like to regain the foreign portfolio, which he surrendered after his indictment was announced last year.

(Writing by Dan Williams; Editing by Stephen Powell)

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Golf: Snedeker, Hahn share lead at Pebble Beach

PEBBLE BEACH, California: Brandt Snedeker, runner-up to Tiger Woods and Phil Mickelson in the past two weeks, fired a four-under par 68 Saturday to share the lead after 54 holes at the Pebble Beach National Pro-Am.

Snedeker, a 32-year-old American who won last year's PGA playoff crown, stood alongside Korean-American PGA rookie James Hahn on 12-under 202 through three rounds in quest of a $1.15 million top prize at the $6.5 million event.

"It was a fun day. I played great start to finish," Snedeker said. "I had a couple hiccups in there but overall I played well. I've putted well the past two days. Left me a little bit today, but hopefully it will be back tomorrow."

Pros played alongside amateurs, many of them celebrities in entertainment and sports, over three courses during the first three rounds before the cut ahead of Sunday's finish at Pebble Beach.

Snedeker, playing at Pebble Beach, birdied the par-5 second and answered a bogey at the par-3 fifth by finishing the front nine with four birdies in a row.

"I hit my irons really close on the front," Snedeker said. "I had 6- to 8-footers for birdies on the front. On the back, I had birdie chances but couldn't convert them."

After a bogey at 10 and birdie at 11, Snedeker parred his way to the clubhouse.

"Only giving away one bogey coming in out here was a help," Snedeker said.

Hahn fired a bogey-free 66, six-under par, at Spyglass Hill to match Snedeker at the top.

Starting on the back nine, Hahn birdied the par-5 11th and 14th holes, added another at the par-4 17th and then closed the round with three birdies in a row to grab a share of the lead.

"My attitude (was great)," Hahn said. "I started off well, told myself I was going to give myself a lot of looks, 10 to 15 feet, and you have to make those putts."

Hahn, who played college golf at the nearby University of California, said that Sunday's round, the most important of his career to date, will be "just another day in the office for me. I'm just going to go out and have fun."

Hahn admitted he will feel the nerves, even with his brother serving as his caddie.

"Nervous means I care a lot," Hahn said. "I'm more excited than anything."

The 31-year-old, who was born in Seoul, did a "Gangnam-style" celebration dance last week after making a 20-foot, final-round birdie at Phoenix's rowdy 16th hole, adopting the moves that made Korean performer Psy a YouTube smash.

Hahn was saying he had pushed the bar high for a repeat dance show at Pebble Beach but said, "Maybe a winning putt on 18 might do a little something."

Hahn might have the chance to make one in the final group with Snedeker, who leads the US PGA Tour in scoring average and birdies but hopes not to settle for another second-best showing.

"I've got to take advantage of the opportunities I didn't today," Snedeker said. "In my view I saved them all up for tomorrow. You have to make those chances if you are going to win."

American Chris Kirk, whose lone PGA title came at the 2011 Viking Classic, fired a six-under 64 at the Monterey Peninsula Shore course to stand third, one stroke off the pace at 203.

Kirk, who began his third round on the back nine, birdied the par-5 12th to start a run of four birdies in five holes. He had back-to-back birdies at the second and third then answered a bogey at the par-3 seventh with a birdie at the par-3 ninth.

Defending champion Phil Mickelson slipped on wet rocks and fell on his rear at the 18th hole at Pebble Beach on his way to a triple-bogey 8 that dropped him out of contention.

"I got lucky, I didn't get hurt," Mickelson said. "To finish with a triple, it didn't feel great. It was a fun day to play golf. I just wish I could have played better. That triple really just took me out of it."

Leading scores after the third round of the US PGA Tour's $6.5 million Pebble Beach National Pro-Am:

202 - Brandt Snedeker 66-68-68, James Hahn 71-65-66

203 - Chris Kirk 71-68-64

204 - Patrick Reed 68-69-67

205 - Richard Lee 68-71-66

206 - Retief Goosen (RSA) 71-68-67, Robert Garrigus 71-69-66, Jason Day (AUS) 68-68-70, James Driscoll 72-67-67, Jimmy Walker 68-71-67

207 - Sean O'Hair 70-67-70, Luke Guthrie 68-70-69, Kevin Stadler 69-69-69, Webb Simpson 71-71-65, Ted Potter 67-67-73, Fredrik Jacobson (SWE) 71-66-70

208 - Charlie Wi (KOR) 70-70-68, Hunter Mahan 66-69-73, Alistair Presnell (AUS) 68-72-68, William McGirt 72-69-67, Matt Every 67-70-71, Kevin Na 68-72-68, Russell Knox (SCO) 64-73-71, Billy Horschel 70-71-67, Jordan Spieth
70-70-68, Patrick Cantlay 66-70-72

209 - Bill Lunde 71-70-68, Aaron Baddeley (AUS) 69-71-69, Scott Brown 72-68-69, John Merrick 68-67-74, Justin Hicks 71-68-70

- AFP/al

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LA Microsoft Store not mobbed, but Surface has a following

The Surface Pro

(Credit:
Brooke Crothers)

LOS ANGELES -- The launch of the Surface Pro at the Microsoft Store in LA's Century City was a relatively low-key affair compared with the debut of the Surface RT.

When I arrived just after 10 a.m. there was a small line (see photo). That said, both versions -- 64GB and 128GB -- of the
Surface Pro had sold out immediately.

Of course, no one would say how many units were set aside for first-day sales, and the lines didn't exactly snake around the Westfield Century City mall. So, it wasn't like a Depression-era run on a bank.

And back in October the lines were longer and the atmosphere a bit more frenzied when the Surface RT launched.

On Saturday, there was a small line outside the Century City Microsoft Store near Beverly Hills. The Surface Pro sold out immediately at the store.

(Credit:
Brooke Crothers)

But like the RT rollout, there was a fixation on and interest in the product not unlike what's found at an Apple event. I saw more than a few customers glued to the device for 30 minutes or even an hour.

In other words, Surface has a following. An analogy I would use is the Chevy Volt. Recently in LA, the Chevy Volt is gaining ground, driven by a small but growing (and fervent) customer base.

And Microsoft Store sales reps know what they're talking about. A patient, focused rep gave me a long, hands-on explanation of the
Windows 8 touch interface and demonstrated a new touch-enabled paint app, among other apps.

Finally, note that there are other enticing touch-screen Windows 8 devices at the store, including the 2.3-pound Acer Aspire S7 and the HP Spectre XT TouchSmart. And that's good for Windows 8 overall.

Looking at the line from inside the store.

(Credit:
Brooke Crothers)

The Surface Pro isn't the only cool Windows 8 device on sale at the Microsoft Store. The 11.6-inch Acer Aspire S7 touch-screen laptop is a tempting alternative to the Pro.

(Credit:
Brooke Crothers)

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Slain Texas prosecutor remembered at memorial service

TERRELL, Texas A Texas prosecutor gunned down outside his courthouse office last month was remembered Saturday for his zealousness in pursuing tough cases, love of flying and ability to tell stories.

Hundreds turned out in a school auditorium to celebrate the life of Kaufman County Assistant District Attorney Mark Hasse during a 90-minute memorial service that included stories about the veteran prosecutor's tough and softer sides as well as vows to catch his killer.

Hasse, 57, was shot multiple times the morning of Jan. 31 while walking from his car in a parking lot about a block from the courthouse. The brazen crime has sparked an investigation that includes both local and federal authorities, many of whom attended the Saturday ceremony.

Kaufman County District Attorney Mike McLelland described how Hasse, who wasn't married and had no children, never backed away from anything while often telling stories that brought laughter heard throughout the courthouse.

McLelland then turned to the effort to find Hasse's killer.

"He knows and I know there will be a reckoning," the DA said. "Too many people are focusing on that. That's not going to be a problem."

The slain prosecutor's brother, Paul Hasse, also mentioned the search for the gunman.

"You honor him by the massive effort you are making to find out who did this," he said.

Several speakers traced Hasse's career from his time as an assistant district attorney in Dallas in the 1980s to his decision three years ago to join the DA's office in Kaufman, 33 miles southeast of Dallas.

Dallas attorney Marcus Busch, who worked with Hasse in the Dallas DA's office, called Hasse "the consummate prosecutor," describing how he rose from handling cases in misdemeanor courts to being the chief of the unit charged with prosecuting organized crime. In one well-known instance, Hasse's "wicked and clever intellect" prompted him to take on a case of murder by arson that had previously been rejected, and he was able to gain a conviction, Busch said.

Busch also spoke of Hasse's love of flying and how he recovered from severe head injuries after the vintage World War II aircraft he was flying crashed in Virginia. Busch said he began taking flying lessons himself because of Hasse's passion for it.

Hasse left private practice to work as a prosecutor in Kaufman because "that's what his passion was," Busch said.

"I'd rather be in court trying a case with Mark than being in this room today," he said, stopping to gain his composure.

Cooke County DA Janice Warder, another former colleague from Hasse's Dallas days, recalled working with the prosecutor before computers put information at their fingertips. When questions would emerge from complicated autopsy reports or engineering documents, Hasse would have the answers, she said.

"Before there was Google, there was `Ask Mark,"' Warder said.

Above all else, Hasse was "ruthless when it came to fighting evil," she said.

Justin Lewis, an officer with the sheriff's department in Kaufman County who previously served as an investigator in the county DA's office, also spoke of how Hasse "enjoyed putting criminals in jail." Fighting to control his emotions, Lewis ended his remarks by saying the killer will be caught.

"Answers will eventually come," he said. "We must remain vigilant."

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After Blizzard, Northeast Begins to Dig Out

The Northeast began the arduous process of cleaning up after a fierce storm swept through the region leaving behind up to three feet of snow in some areas.

By early this morning, 650,000 homes and businesses were without power and at least five deaths were being blamed on the storm: three in Canada, one in New York and one in Connecticut, The Associated Press reported.

The storm dumped snow from New Jersey to Maine, affecting more than 25 million people, with more than two feet falling in areas of Massachusetts, Rhode Island and New Hampshire. The Postal Service closed post offices and suspended mail delivery today in New England.

As the storm waned, officials in the hardest hit areas cautioned residents to remain indoors and off the roads to ease the clean-up.

Massachusetts was hard hit by the storm, with more than two feet of snow in Boston and even more in coastal areas. State police and national guard troops helped rescue more than 50 stranded motorists and even helped deliver a baby girl, according to Massachusetts Gov. Deval Patrick.

Patrick enacted the first statewide driving ban since the 1978 blizzard, which left 27 inches of snow and killed dozens. The ban was to be lifted at 4 p.m. today, the governor said.

However, Patrick cautioned residents to act with extreme caution even after the ban is over.

"Stay inside and be patient," Patrick said.

In Massachusetts a boy reportedly died of carbon monoxide poisoning as he helped his father shovel snow on Saturday, according to ABCNews.com affiliate WCVB-TV in Boston.

For residents along the coast, the waning snowfall didn't mean the end of the storm. Storm surges along the Massachusetts coastline forced some residents out of their homes Saturday morning.

"We've got 20-foot waves crashing and flooding some homes," Bob Connors on Plum Island told WCVB. "We have power and heat and all that. We just have a very angry ocean. In my 33 years, I've never seen the seas this high."

Darren McCollester/Getty Images

Blizzard Shuts Down Parts of Connecticut, Massachusetts Watch Video

Blizzard 2013: Power Outages for Hundreds of Thousands of People Watch Video

Blizzard 2013: Northeast Transportation Network Shut Down Watch Video

FULL COVERAGE: Blizzard of 2013

In Connecticut, Gov. Dannel Malloy declared a state of emergency and closed all roads in the state. The state police responded to more than 1,600 calls over the last 24 hours and the governor called up an additional 270 National Guard members.

"If you're not an emergency personnel that's required to be somewhere, stay home," Malloy said.

Overnight, snow fell at a rate of up to five to six inches per hour in parts of Connecticut. In Milford, more than 38 inches of snow had fallen by this morning.

In Fairfield, Conn. firefighters and police officers on the day shift were unable to make it to work, so the overnight shift remained on duty.

PHOTOS: Blizzard Hits Northeast

The wind and snow started affecting the region during the Friday night commute.

In Cumberland, Maine, the conditions led to a 19-car pile-up and in New York, hundreds of commuters were stranded on the snowy Long Island Expressway. Police and firefighters were still working to free motorists early this morning.

"The biggest problem that we're having is that people are not staying on the main portion or the middle section of the roadway and veering to the shoulders, which are not plowed," said Lt. Daniel Meyer from the Suffolk County Police Highway Patrol.

In New York, authorities are digging out hundreds of cars that got stuck overnight on the Long Island Expressway.

Bob Griffith of Syosset, N.Y., said he tried leave early to escape the storm, but instead ended up stuck in the snow by the side of the road.

"I tried to play it smart in that I started early in the day, when it was raining," said Griffith. "But the weather beat us to the punch."

Suffolk County Executive Steven Bellone said the snow had wreaked havoc on the roadways.

"I saw state plows stuck on the side of the road. I've never seen anything like this before," Bellone said.

However, some New York residents, who survived the wrath of Hurricane Sandy, were rattled by having to face another large and potentially dangerous storm system with hurricane force winds and flooding.

"How many storms of the century can you have in six months?" said Larry Racioppo, a resident of the hard hit Rockaway neighborhood in Queens, New York.

READ: Weather NYC: Blizzard Threatens Rockaways, Ravaged by Sandy

Snowfall Totals

In New York, a little more than 11 inches fell in the city.

By this morning, New York Mayor Michael Bloomberg said nearly all of the primary roads had been plowed and the department of sanitation anticipated that all roads would be plowed by the end of the day.

"It looks like we dodged a bullet, but keep in mind winter is not over," said Bloomberg.

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China, Japan engage in new invective over disputed isles

BEIJING (Reuters) - China and Japan engaged on Friday in a fresh round of invective over military movements near a disputed group of uninhabited islands, fuelling tension that for months has bedeviled relations between the Asian powers.

An increasingly muscular China has been repeatedly at odds with others in the region over rival claims to small clusters of islands, most recently with fellow economic giant Japan which accused a Chinese navy vessel of locking radar normally used to aim weapons on a Japanese naval ship in the East China Sea.

China's Defence Ministry rejected Japan's complaint about the radar, its first comment on the January 30 incident. It said Japan's intrusive tracking of Chinese vessels was the "root cause" of the renewed tension.

A Japanese official dismissed the Chinese explanation for incident saying China's actions could be dangerous in the waters around the islets, known as Diaoyu in China and Senkaku in Japan, believed to be rich in oil and gas.

Japanese Prime Minister Shinzo Abe led his conservative party to a landslide election victory in December, promising to beef up the military and stand tough in territorial disputes.

On Thursday, another border problem was brought into focus when Japan said two Russian fighter jets briefly entered its air space near long-disputed northern islands, prompting Japan to scramble combat fighters. Russia denied the accusation.

The commander of U.S. forces in the Asia-Pacific said the squabble between Japan and China underlined the pressing need for rules to prevent such incidents turning into serious conflict.

"What we need in the South China Sea is a mechanism that prevents us turning our diplomacy over to young majors and young (naval) commanders ... to make decisions at sea that cause a problem (that escalates) into a military conflict that we might not be able to control," Admiral Samuel Locklear told a conference in the Indonesian capital.

China is in dispute with several Southeast Asian countries including the Philippines and Vietnam over parts of the South China Sea, which is potentially rich in natural resources.

Locklear said governments and their leaders had to understand the potential for things to get out of hand.

"In this case, I think that point has been made pretty clear," he said in reference to international reaction to the dispute between China and Japan.

"IRRESPONSIBLE"

China's Defence Ministry, in a faxed statement late on Thursday, said Japan's complaints did not "match the facts". The Chinese ship's radar, it said, had maintained regular alerting operations and the ship "did not use fire control radar".

The ministry said the Chinese ship was tracked by a Japanese destroyer during routine training exercises. Fire control radar pinpoints the location of a target for missiles or shells and its use can be considered a step short of actual firing.

Japan, the ministry said, had "made irresponsible remarks that hyped up a so-called China threat, recklessly created tension and misled international public opinion".

"Japanese warships and airplanes have often conducted long periods of close-range tracking and surveillance of China's naval ships and airplanes," the Chinese Defence Ministry said.

"This is the root cause of air and maritime security issues between China and Japan."

In Tokyo, Japan's Chief Cabinet Secretary Yoshihide Suga told a news conference Japan could not accept China's explanation and Japan's accusation came after careful analysis.

"We urge China to take sincere measures to prevent dangerous actions which could cause a contingency situation," Suga said.

Japanese Defence Minister Itsunori Onodera said this week that the radar incident could have become very dangerous very quickly, and it could have been seen as a threat of military force under U.N. rules.

Hopes had been rising recently for an easing of the tension, which was sparked, in part, by Japan's nationalization of three of the privately owned islets last September.

Fears that encounters between aircraft and ships could bring an unintended clash have given impetus to efforts to improve links, including a possible summit between Abe and Chinese leader Xi Jinping, who takes over as head of state in March.

(Additional reporting by Linda Sieg in TOKYO, Joathan Thatcher in JAKARTA; Editing by Ron Popeski and Robert Birsel)

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Venezuela devalues currency 32% against US dollar

CARACAS: Venezuela said Friday it is devaluing its currency by 32 per cent against the dollar on the orders of cancer-stricken President Hugo Chavez, in part to trim a bloated budget deficit.

The bolivar will go from 4.3 to 6.3 to the dollar at the official exchange rate. The move was announced at a press conference by Planning and Finance Minister Jorge Giordani. He said it will take effect on Wednesday.

The goal is to "minimize expenditure and maximize results." One effect of a devaluation is to make a country's exports cheaper and thus more enticing to buyers.

But another effect is to cut the deficit, which in Venezuela last year was estimated to be nearly 10 per cent of GDP.

The economy grew 5.5 per cent last year and inflation was 20 per cent. That was down seven points from the previous year and hit the government target, but was still the highest official inflation rate in Latin America.

Venezuela is South America's largest oil exporter and has the world's largest proven reserves. Its oil transactions are dollar-denominated, so the bolivar-value of those sales will now be higher, boosting state revenues on paper.

The change had been widely expected by analysts and business leaders since last year. This is Venezuela's fifth currency devaluation in a decade.

But a side effect of the new one will be higher inflation, economists warned.

Giordani said the government would honour dollar purchase requests made before January 15 requests at the old exchange rate.

Chavez is convalescing in Cuba, where he underwent a fourth round of cancer surgery on December 11.

Vice President Nicolas Maduro, who visited Chavez this week, said at the same press conference Friday that Chavez is concerned about the Venezuelan economy and called for a "major effort" to maintain its pace of growth.

Chavez established currency controls in 2003 and the government sets the rate to curb capital flight.

But the existence of a strong black market for the dollar shows the continuing desire for hard currency.

Economist Jesus Casique warned the devaluation would have a major inflationary side effect and the government should not see it as the main tool for trimming the deficit.

Rather, it should take other steps such as clearing away red tape that makes it hard for business to obtain dollars and encouraging Venezuelan non-oil exports.

"The measure should come hand in hand with others," Casique said.

Out on the street, there was little enthusiasm for the devaluation.

"This is bad news," said businessman Jorge Martinez, walking past the Venezuelan central bank with his wife. "We have been number-crunching because in a month we are going to travel to Spain, and now we do not have enough money."

- AFP/xq

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