Mark Wahlberg to star in next 'Transformers' movie

LOS ANGELES (AP) — Mark Wahlberg, roll out.

"Transformers" director Michael Bay says the 41-year-old actor will star in the franchise's fourth film.

Bay called Wahlberg the "perfect guy to re-invigorate the franchise and carry on the Transformers' legacy" in a post on his blog Thursday. He previously squashed rumors that Wahlberg was joining the film franchise about warring robots.

Bay worked with Wahlberg on his upcoming film, "Pain and Gain."

"Transformers 4" is scheduled to be released by Paramount Pictures on June 27, 2014.

Bay has said the next film will take a new direction in the series. The first three movies starred Shia LaBeouf and featured Peter Cullen as the voice of Autobot general Optimus Prime.

The third "Transformers" film, "Dark of the Moon," was the second highest-grossing film of 2011.

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Calif. city plans to provide transgender surgeries

SAN FRANCISCO (AP) — San Francisco is preparing to become the first U.S. city to provide and cover the cost of sex reassignment surgeries for uninsured transgender residents.

The city's Health Commission voted Tuesday to create a comprehensive program for treating transgender people experiencing mental distress because of the mismatch between their bodies and their gender identities. San Francisco already provides transgender residents with hormones, counseling and routine health services, but has stopped short of offering surgical interventions, Public Health Director Barbara Garcia said Thursday after the vote was announced.

The idea for a new program that included surgeries came out of conversations between public health officials and transgender rights advocates who wanted mastectomies, genital reconstructions and other surgeries that are recommended for some transgender people covered under San Francisco's 5-year-old universal health care plan.

At the urging of the San Francisco Board of Supervisors and the San Francisco-based Transgender Law Center, the commission agreed this week to drop sex reassignment surgery from the list of procedures specifically excluded from the Healthy San Francisco plan.

But Garcia described the move as "a symbolic process" for now because the city currently does not have the expertise, capacity or protocols in place to provide the surgeries through its clinics and public hospital.

"The community felt the exclusion on Healthy San Francisco was discriminatory and we wanted to change that as the first step," she said.

Instead of expanding the existing plan, the Health Commission approved the establishment of a separate program that covers all aspects of transgender health, including gender transition. Garcia hopes to have it running by late next year, but said her department first needs to study how many people it would serve, how much it would cost, who would perform the surgeries and where they would be performed.

"Sex reassignment surgery is not the end all. It's one service that some transgender people want and some don't," she said. "We can probably manage this over the next three years without much of a budget increase because we already have these (other) services covered."

San Francisco in 2001 became the first city in the country to cover sex reassignment surgeries for government employees. Last year, Portland, Ore. did the same. The number of major U.S. companies covering the cost of gender reassignment surgery for transgender workers also doubled last year, reflecting a decades-long push by transgender activists to get insurance companies to treat such surgeries as medically necessary instead of elective procedures.

Kathryn Steuerman, a member of a transgender health advocacy group in San Francisco, said the city's latest move would help residents avoid going into debt to finance operations related to gender transition, as she did.

"I am filled with hope and gratitude that we are achieving this level of support for the well-being of the transgender community," Steuerman said.

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Boehner: Raising tax rates 'unacceptable'

Raising tax rates is "unacceptable" to House Speaker John Boehner as he prepares to open negotiations on the looming "fiscal cliff" with the president and congressional Democrats, he told "World News" anchor Diane Sawyer today in an exclusive interview.

"Raising tax rates is unacceptable," Boehner, R-Ohio, said in his first broadcast interview since the election Tuesday.

"Frankly, it couldn't even pass the House. I'm not sure it could pass the Senate."

That stance could set up a real showdown with the White House given that the president has said he would veto any deal that does not allow tax cuts for the rich to expire. But the speaker said that Republicans would put new tax revenue on the table as leaders work toward a deal.

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"I would do that if the president was serious about solving our spending problem and trying to secure our entitlement programs," Boehner said. "If you're increasing taxes on small-business people, it's the wrong approach."

Nevertheless, Boehner added that he is at least willing to listen to the president's proposals, even if they clash with his party's principles.

"Of course, we'll talk about it. We talk about all kinds of things we may disagree on," Boehner said. "I'm the most reasonable, responsible person here in Washington. The president knows it. He knows that he and I can work together. The election's over. Now it's time to get to work."

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The fiscal cliff is a mix of tax increases and spending cuts set to take effect at the end of the year that could sink the economy back into recession. Boehner told Sawyer he imagines that negotiations on a bipartisan deal will begin soon, although he did not reveal whether any talks had already been scheduled.

Still, he said he hoped the framework of a deal could be completed by the end of the year in order to direct the next Congress to work out the details.

"The American people elected new representatives," he said. "They're the ones who ought to be the ones to do this.

"There are things that we can do in the lame duck to avert the fiscal crisis, but we want to do this the right way. We don't want to rush through this in the next two to three weeks. And what do you get? You can't rewrite the tax code in the next two or three weeks. And, so, there's a lot of possibilities in terms of how we proceed, and I'm confident that we can."

Boehner also said he welcomes back Rep. Paul Ryan, whose profile has exploded since he was chosen by Mitt Romney as the vice presidential nominee. Ryan won re-election to his House seat in Wisconsin at the same time he lost the vice presidency, but Boehner demurred when asked whether his place on the presidential ticket would increase his leadership profile.

"Because he ran for the vice presidency, is he the leader of the Republican party now?" Sawyer asked.

"Oh, I wouldn't think so. Paul Ryan's a policy wonk," Boehner said. "He's involved in the cause of trying to bring us pro-growth economic agendas for America and making sure that we're doing this in a fiscally responsible way.

"I'm glad that Paul Ryan's coming back to the Congress. I would expect he would continue as chairman of the Budget Committee," he said.

"Probably nobody in the Congress knows more about pro-growth economic policies other than Paul Ryan. I don't think there's many people in the Congress who understand the entitlement crisis that we're facing more than Paul Ryan. I think he'll be an important voice in this discussion and in this debate."

Boehner also said that once he saw that Mitt Romney would lose the race for the White House, he went to sleep at about 11:15 p.m. on election night with the realization that he would wake up to divided government, but still "slept like a baby."

"I may not like the five cards that have been dealt to me, but those are the cards I've got in my hand, and my job on behalf of the American people is to find a way to vote with my Democratic colleagues and a Democratic president to solve America's problems," he said. "If there was one mandate that came out of the election, it was find a way to work together to address our problems."

Sawyer asked the speaker whether Romney should take responsibility for those election results, but Boehner said he is proud of his campaign.

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China's Hu urges firm party control, curb on graft

BEIJING (AP) — Preparing to hand over power after a decade in office, China's President Hu Jintao called Thursday for sterner measures to combat official corruption that has stoked public anger while urging the Communist Party to maintain firm political control.

In a 90-minute speech opening a weeklong party congress to usher in new leaders for the coming decade, Hu cited many of the challenges China faces — a rich-poor gap, environmentally ruinous growth and the imbalanced development between prosperous cities and a struggling countryside.

Yet he offered little evidence of fresh thinking to address ways to reinvigorate a flagging economy and meet public demands for a more open government. Instead he outlined more of the piecemeal policy-making that has been the hallmark of his 10 years in power.

Only in addressing the rampant graft did he sound the alarm. Hu singled out party members, calling on them to be ethical and to rein in their family members, whose trading on their connections for money and lavish displays of wealth have deepened public cynicism about the party.

"Nobody is above the law," Hu said to the applause of the 2,309 delegates and invited guests gathered in the Great Hall of the People, with his successor, Vice President Xi Jinping, and other party notables on the dais behind him.

He later said, "If we fail to handle this issue well, it could prove fatal to the party, and even cause the collapse of the party and the fall of the state."

The tough appeal on corruption follows months of scandal that have further battered the party's image in the public eye and made the power transfer more divisive. A senior politician, Bo Xilai, was purged for involvement in covering up his wife's murder of a British businessman, but only after rumors, trials and media reports that portrayed party leaders as more interested in power than in governing.

The congress, held once every five years, initiates a carefully choreographed but still fraught political transition in which Hu and most of the senior leadership in the 60s begin to relinquish office to Xi and his 50-something colleagues over the next five months.

Scandal aside, the transition always invites tough bargaining, as exiting leaders and still-powerful retired party elders try to place protégés and allies in the leadership.

Stakes have seemed higher still this year for the party and the public, with China seemingly facing a turning point. The old model of heavily state-directed growth that lifted hundreds of millions out of poverty and made China an economic powerhouse is faltering in the face of rising domestic debt and a weak global economy. Meanwhile, the government has to contend with the public's continued expectations of higher living standards and for less corruption and greater accountability, if not outright democracy.

In a sign of the public disquiet, four ethnic Tibetans in Sichuan and Qinghai provinces set themselves on fire on the eve of the congress in protests against Chinese rule of Tibetan areas, London-based rights group Free Tibet said, adding that it was the most such self-immolations in a single day.

At dawn in Tiananmen Square, next to the congress venue, a woman in her 30s threw pieces of torn paper into the air and shouted "bandits and robbers!" — a curse often leveled at corrupt local officials. She was taken away by the security forces which have smothered all of Beijing for the congress.

Taxi drivers have even been told to remove window handles to block any drive-by sloganeering.

The congress itself often seems from a different era. Most of the delegates are drawn from the ranks of the 82 million-member party to make the event appear broadly representative while the real deal-making is done by a few dozen power-brokers behind the scenes.

After the delegates stood for the national anthem, the congress paused for a moment of silence to remember Mao Zedong and other revolutionary leaders. A golden hammer and sickle, the party's symbol, hung on the wall behind Hu. On the rostrum, dressed in a Mao jacket, sat 95-year-old Song Ping, a veteran revolutionary and party insider.

Coming so soon after President Barack Obama's re-election in the United States, the congress has drawn unfavorable comparisons from politically minded Chinese who have bemoaned how little direct influence they have in choosing their leaders.

"I am doing nothing but staring at the television before Obama gets re-elected. As for China's party congress, there is no need for me to worry. On the contrary, it would be a waste of my time," Xu Xiaoping, a celebrity entrepreneur who co-founded a successful chain of English language cram schools, said on a Chinese version of Twitter where he has 6 million followers.

Hu's speech was part swansong, part consensus platform meant to impose policy continuity on Xi and the new leadership.

Hu set a target for doubling the size of the country's economy and per capita income from 2010 to 2020, implying an 8 percent annual growth rate that economists say may saddle China with higher debt and more waste and prevent a rebalancing away from state companies to private companies and households.

"Only development counts," Hu said.

Hu also turned aside calls from retired party members and government think tanks to answer public demands for more transparency and accountability by moving toward a more democratic system. He said the party must remain in charge while learning to be more responsive to public needs.

"We must ensure the unity of the leadership of the party," Hu said. He later added: "We will never copy a Western political system."

___

Associated Press writers Gillian Wong, Christopher Bodeen, Didi Tang and Louise Watt contributed to this report.

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Apple slides to five-month low, uncertainty grows

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Rihanna a rock star on Victoria's Secret catwalk

NEW YORK (AP) — Rihanna rocked the lingerie look at Wednesday night's Victoria's Secret fashion show in New York, providing the highlight of the live-music soundtrack and holding her own on the catwalk with some of the world's top models.

And those models even had props, including Adriana Lima's ringmaster wand, Doutzen Kroes' body cage and several pairs of the oversized wings that the retailer has made its signature. It would be a close contest who got the biggest wings: Toni Garrn's giant poppy pair or Miranda Kerr's swan-style feathered pouf. Only Lily Aldridge could boast star-spangled wings that shot out silver sparkles.

Alessandra Ambrosio's orchid-petal wings might have lacked a little grandeur, but she made up for it with a $2.5 million jeweled "floral fantasy bra."

Still, wearing a sheer pink mini that gave glimpses of her bra, Rihanna sang "Fresh Out the Runway" at the end of the corset-and-garter parade and she was the one to grab the audience's biggest applause.

The fashion show has become a pre-holiday season tradition for the retailer. CBS will turn it into a one-hour special, which also had performances from Justin Bieber and Bruno Mars, to be shown on Dec. 4.

This year's event had a slight twist. It started with an announcer noting that Victoria's Secret and CBS had each made a donation to relief efforts for Superstorm Sandy, and a thank you to the National Guard members who are based out of the Lexington Avenue Armory that has for years been home to the show.

Mostly, though, models are encouraged to smile, ham it up and show off the extra time at the gym that most admit to in the weeks beforehand. "It's highly televised, and you take that into consideration," said model Joan Smalls ahead of the show. "This is kind of not the same as other runways. You have to prepare your body: No. 1 is the wings are heavy, and No. 2 is you have to be comfortable with your body because the camera will pick up on it if you're not comfortable and confident."

There's an emphasis on glitz, skin and dramatic production here, not wearable undergarment trends for typical Victoria's Secret shoppers. It was divided into six sections: Circus, complete with acrobats, contortionists and a sword eater; Dangerous Liaisons; Pink Is Us; Silver Screen Angels; Angels in Bloom; and Calendar Girls, which allowed Bruno Mars to serenade a model for each month of the year.

For his first song, "Beauty and the Beat," Bieber, wearing low-slung white pants and a white leather studded vest, sat alone with his guitarist in the mellowest part of the show. For "As Long As You Love Me," however, he brought in backup dancers and interacted with the models while moving around a giant makeshift pinball machine.

"It's like a dream come true," said Bieber on the pink carpet before the show. "I would rather be here than anywhere in the world."

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AP reporter John Carucci contributed to this report.

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Samantha Critchell tweets fashion at http://www.twitter.com/AP_Fashion

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Experts raise concerns over superhuman workplace

LONDON (AP) — Performance-boosting drugs, powered prostheses and wearable computers are coming to an office near you — but experts warned in a new report Wednesday that too little thought has been given to the implications of a superhuman workplace.

Academics from Britain's leading institutions say attention needs to be focused on the consequences of technology which may one day allow — or compel — humans to work better, longer and harder. Here's their list of upgrades that might make their way to campuses and cubicles in the next decade:

BRAIN BOOSTERS

Barbara Sahakian, a Cambridge neuropsychology professor, cited research suggesting that 16 percent of U.S. students already use "cognitive enhancers" such as Ritalin to help them handle their course loads. Pilots have long used amphetamines to stay alert. And at least one study has suggested that the drug modafinil could help reduce the number of accidents experienced by shift workers.

But bioethicist Jackie Leach Scully of northern England's Newcastle University worries that the use of such drugs might focus on worker productivity over personal well-being.

"Being more alert for longer doesn't mean that you'll be less stressed by the job," she said. "It means that you'll be exposed to that stress for longer and be more awake while doing it."

WEARABLE COMPUTERS

The researchers also noted so-called "life-logging" devices like Nike Inc.'s distance-tracking shoes or wearable computers such as the eyeglasses being developed by Google Inc. The shoes can record your every step; the eyeglasses everything you see. Nigel Shadbolt, an expert in artificial Intelligence at southern England's University of Southampton, said such devices were as little as 15 years away from being able to record every sight, noise and movement over an entire human life.

So do you accept if your boss gives you one?

"What does that mean for employee accountability?" Shadbolt asked.

BIONIC LIMBS — AND BEYOND

The report also noted bionic limbs like the one used this week by amputee Zac Vawter to climb Chicago's Willis Tower or exoskeletons like the one used earlier this year by partially paralyzed London Marathon participant Claire Lomas. It also touched on the development of therapies aimed at sharpening eyesight or cochlear implants meant to enhance hearing.

Scully said any technology that could help disabled people re-enter the workforce should be welcomed but society needs to keep an eye out for unintended consequences.

"One of the things that we know about technology hitting society is that most of the consequences were not predicted ahead of time and a lot of things that we worry about ahead of time turn out not to be problems at all," she said. "We have very little idea of how these technologies will pan out."

THE PRESSURIZED WORKPLACE

The report was drawn up by scientists from The Academy of Medical Sciences, the British Academy, the Royal Academy of Engineering and the Royal Society.

"We're not talking science fiction here," said Genevra Richardson, the King's College law professor who oversaw the report. "These technologies could influence our ability to learn or perform tasks, they could influence our motivation, they could enable us to work in more extreme conditions or in old age, or they could facilitate our return to work after illness or disability .... Their use at work also raises serious ethical, political and economic questions."

Scully said workers may come under pressure to try a new memory-boosting drug or buy the latest wearable computer.

"In the context of a highly pressurized work environment, how free is the choice not to adopt such technologies?" she said.

Union representatives appeared taken aback by some of the experts' predictions. One expressed particular disquiet at the possibility raised by the report that long-distance truck drivers might be asked to take alertness drugs for safety reasons.

"We would be very, very against anything like that," said James Bower, a spokesman for Britain's United Road Transport Union. "We can't have a situation where a driver is told by his boss that he needs to put something in his body."

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Online:

The report: http://royalsociety.org/policy/projects/human-enhancement

Raphael Satter can be reached on: http://raphae.li/twitter

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How did America become so polarized?

WASHINGTON (AP) — The election laid bare a dual — and dueling — nation, politically speaking, jaggedly split down the middle on the presidency and torn over much else. It seems you can please only half of the people nearly all of the time.

Americans retained the fractious balance of power in re-electing President Barack Obama, a Republican House and a Democratic Senate, altogether serving as guarantors of the gridlock that voters say they despise. Slender percentages separated winner and loser from battleground to battleground, and people in exit polls said yea and nay in roughly equal measure to some of the big issues of the day.

Democracy doesn't care if you win big, only that you win. Tuesday was a day of decision as firmly as if Obama had run away with the race. Democrats are ebullient and, after a campaign notable for its raw smackdowns, words of conciliation are coming from leaders on both sides, starting with the plea from defeated Republican rival Mitt Romney that his crestfallen supporters pray for the president.

But after the most ideologically polarized election in years, Obama's assertion Wednesday morning that America is "more than a collection of red states and blue states" was more of an aspiration than a snapshot of where the country stands.

"It's going to take a while for this thing to heal," said Ron Bella, 59, a Cincinnati lawyer who lives in Alexandria, Ky. He is relieved Obama won, but some of his co-workers are in a "sour mood" about it.

"They feel like the vast majority of the country wanted Romney, and the East and the West coasts wanted Obama," he said. "I'm not sure exactly why that is, but there just seems to be such hatred for Obama out there."

Compromise was a popular notion in the hours after Obama's victory and an unavoidable one, given the reality of divided government. But the familiar contours of partisan Washington were also in evidence, especially the notion that compromise means you do things my way.

As Democratic Rep. Steve Israel of New York put it, "If you refuse to compromise, we are going to beat you." Israel, chairman of the Democratic Congressional Campaign Committee, said the election showed "if you are an extremist tea party Republican, you are going to lose."

Senate Republican Leader Mitch McConnell of Kentucky said pointedly that Republicans will meet Obama halfway "to the extent he wants to move to the political center" and propose solutions "that actually have a chance of passing."

In New York's bustling Times Square, hope, skepticism and the usual polarities were all to be found when people talked about the president. "He may not have done a great job in my mind but I kinda trust him," said Jerry Shul. "I have faith he will get with the Republicans and get something done."

A less-flattering George Dallemand called this "a moment of truth" for the country. "I guess we have to wish for the best now, but I still think he is socialism."

In Miami, Karen Fitzgerald, 55, wore a black dress and said she was in mourning over Romney's defeat.

"It's an upsetting day," she said. But she took some comfort from her Democratic friends on Facebook, who have stopped chiding the other side in their posts. "Now they're all saying we need to work together and be united," she said. "Maybe we can."

In Springfield, Ohio, an "elated" Frank Hocker, 67, hoped Republicans would get the message to get out of Obama's way. "There was a backlash," he said. "For this obstructionist House and those tea party people, I hope they learned their lesson. I hope they learned their lesson: Don't stop the progress of this country."

In Chicago, Obama supporter Scherita Parrish, 56, predicted the president will reach out to Republicans but may not get much back.

"But the people have spoken," she said. "They need to lick their wounds, get on with it and start working with the president."

Unity is a challenge not just for Obama but for the Republicans, who won less than 30 percent of the growing Hispanic vote and not even one in 10 black voters. Obama built a strong Electoral College majority, if only a narrow advantage in the popular vote, despite losing every age group of non-Hispanic white voters.

Surveys of voters found Obama's health care law to be as divisive as ever, with just under 50 percent wanting it repealed in whole or part, and 44 percent liking it as is or wanting more of it.

But democracy doesn't care about exit polls, either, and the election almost certainly means Republicans can forget about trying to roll it back now.

In reaffirming divided government, though, Americans all but ensured colossal fights are ahead over the shape of government and Obama's agenda. He is out to break a wall of Republican opposition to tax increases on the wealthy — a move that about half the voters in exit polls thought was a good idea. And extraordinarily difficult negotiations are imminent as the president and Congress try to make a deal to avoid the "fiscal cliff" — steep spending cuts and a variety of tax increases in January.

In the end, voters split about equally on whether Obama or Romney would be better at handling the economy.

Then again, they were divided down the middle on whether Obama or his predecessor, George W. Bush, deserves most of the blame for the economy's problems.

So it goes in the 50-50 nation, give or take.

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Associated Press writers Christine Armario in Miami, Michael Tarm in Chicago, David Martin in New York, Amanda Myers in Cincinnati and Ann Sanner in Columbus, Ohio, contributed to this report.

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China hauls away activists in congress crackdown

BEIJING (AP) — During her 30-hour train journey to Beijing, Wang Xiulan ducked into bathrooms whenever the conductors checked IDs. Later, as she lay low in the outskirts of the capital, unidentified men caught her in a nighttime raid and hauled her to a police station. She assumed a fake identity to get away, and is now in hiding again.

Wang's not a criminal. She's a petitioner.

She's among many people attempting to bring local complaints directly to the central government in an age-old Chinese tradition that has continued during the Communist Party era. But police never make that easy, and this week, as an all-important leadership transition begins, a dragnet is aimed at keeping anyone perceived as a threat or a troublemaker out of Beijing.

"There is no law in China, especially for us petitioners and ordinary folk," Wang, 50, said in an interview with The Associated Press. "Even common gangsters and hoodlums get to leave after they serve time for crimes, but for us, if we get locked up, we never know when we might be freed."

Authorities want no surprises as the handover of power begins in the capital Thursday. The transition already has been rocked by the party's messiest scandal in decades, involving a former high-flying politician now accused of engaging in graft and obstructing the investigation into his wife's murder of a British businessman.

Rights groups say the wide-ranging crackdown on critics bodes poorly for those who hope the incoming generation of leaders will loosen restrictions on activism.

"China's top political leaders are very nervous, as they have since early this year been consumed by one of the most destabilizing and disharmonious power struggles in decades," said Renee Xia, international director of the Chinese Human Rights Defenders. The group estimates that hundreds or thousands of people have come under some kind of restriction in preparation for the party congress.

Lawyers have been held under illegal house arrest, dissidents sent back to their hometowns and activists questioned. Internet users report difficulties accessing many websites and the failure of software meant to bypass Internet filters.

Veteran activist Huang Qi, who runs a website on petitioners like Wang, said nearly 1,000 people have contacted him over the past few weeks to complain that authorities have hired thugs to harass and beat them.

"I hope that the Chinese authorities will face up to the social problems," Huang said in an interview. "Using violence will only escalate the resistance."

The crackdown reflects the leadership's nervousness as slowing economic growth exacerbates public outrage over corruption, social injustice, pollution and favoritism toward state-run agencies and the elite at the expense of ordinary people.

Under normal circumstances, petitioners are relatively safe once they reach Beijing's outskirts, though in their home provinces they are almost perpetually on the run from hostile local officials or thugs-for-hire who want to nab them before they can get an audience with central government agencies.

Now, however, even the capital's fringes are off limits.

Wang, a petite woman with shoulder-length hair neatly tied back, has been trying for two decades to draw central government attention to what she says was police mishandling of a serious assault she suffered in her native Harbin. Not only did her attacker go unpunished, but Wang ended up getting dismissed from her job years later.

Wang arrived in late October in Lu Village in Beijing's southwest, where petitioners have sought refuge for years. A police post guards the road into the village, and residents say officers have lately blocked petitioners from entering.

Wang had rented a bed — a wooden plank on bricks — in a tiny concrete room shared with two others. A gang of two dozen men barged in one night at 11 p.m., demanded to see her ID, searched her belongings and grabbed her cellphone.

"I was scared to death when they suddenly barged in here," Wang said, pointing at the door, where the lock had just been replaced.

The men refused to identify themselves and bundled her into a minivan with other petitioners. At another stop, she saw a couple dragged into the vans in their pajamas, the woman wearing only one shoe.

All were taken to a police station in nearby Jiujingzhuang village, where many petitioners say police process them for return to their hometowns. Using someone else's identity, Wang was able to evade police suspicion and was released. Many of the others were sent back, she said.

The raids are having an effect. The compound that houses her room and others now has only a handful of residents, down from about 30.

"They've all been chased away, caught or scared home," said Liu Zhifa, a 67-year-old petitioner from Henan province and one of the holdouts. Liu confirmed Wang's description of the Oct. 31 raid and described his own encounter with thugs breaking his lock and entering his room three times in one night in mid-October.

"I asked them to show their identifications, and they yelled at me, saying 'What right do you have to see our identification? Who do you think you are?" said Liu. "They were ruthless. The authorities and the police are working with people in the underworld."

A police officer who would only give his surname, Wei, answered the phone at a Jiujingzhuang police station (not 'the' because the police station has another name) and denied that authorities were raiding petitioners' villages. "We only act according to the law," Wei said. Questions about the broader crackdown were referred to the Beijing public security bureau, which did not respond to faxed questions.

The crackdown has extended to lawyers such as Xu Zhiyong. He said Beijing authorities have held him under informal house arrest since mid-October, stationing four or five guards outside his apartment in Beijing around the clock.

Xu has campaigned for years against Chinese authorities' use of "black jails," or unofficial detention centers run by local governments to hold petitioners. The government has denied the existence of such facilities, but even the tightly controlled state media have reported on them.

"The illegal restriction of a citizen's personal freedom for a long period of time is criminal behavior," Xu wrote in an email. "In an authoritarian state, this type of crime takes place everywhere."

Authorities in Shanghai also have ratcheted up pressure on critics, sentencing veteran women's rights activist Mao Hengfeng to a year and a half of labor camp. Mao, accused of disturbing social order, had been detained in Beijing in late September, said her husband, Wu Xuewei, who indicated she was being put away to silence her before the party congress.

Even dissidents' relatives have come under pressure. Beijing activist Hu Jia said he was warned by police to leave town, and that even his parents told him that police had told them to escort him to his hometown.

"My parents said to me: 'Hu Jia, you don't know what kind of danger you are in, but we know,'" he recounted in a phone interview from his parents' home in eastern Anhui province. "They said: 'Beijing is a cruel battlefield. If you stay here, you will be the first to be sacrificed. Don't do this.'"

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Follow Gillian Wong on Twitter at twitter.com/gillianwong

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Exclusive - Amazon to win EU e-book pricing tussle with Apple

BRUSSELS (Reuters) - European Union regulators are to end an antitrust probe into e-book prices by accepting an offer by Apple and four publishers to ease price restrictions on Amazon, two sources said on Tuesday.

That decision would hand online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in the fast-growing market publishers hope will boost revenue and increase customer numbers.

"Faced with years of court battles and uncertainty I can understand why some of these guys decided to fold their cards and take the whipping," said Mark Coker, founder of Smashwords, an ebook publisher and distributor that works with Apple.

"It's certainly another win for Amazon," he added. "I have not seen the terms of the final settlement, but my initial reaction is that it places restrictions on what publishers can do, slowing them down just when they need to be more nimble."

A spokesman at the EU Commission said its investigation was not yet finished. Amazon and Apple declined to comment.

In September, Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend "most-favored nation" contracts for five years.

Such clauses bar Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA's Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.

The agreements, which critics say prevent Amazon and other retailers from undercutting Apple's charges, sparked an investigation by the European Commission in December last year.

Pearson Plc's Penguin group, which is also under investigation, did not take part in the offer.

The EU antitrust authority, which in September asked for feedback from rivals and consumers about the proposal, has not asked for more concessions, said one of sources.

"The Commission is likely to accept the offer and announce its decision next month," the source said on Tuesday.

Antoine Colombani, spokesman for competition policy at the European Commission, said: "We have launched a market test in September and our investigation is still ongoing."

Amazon declined to comment, while Apple did not respond to an email seeking comment.

Companies found guilty of breaching EU rules could be fined up to 10 percent of their global sales, which in Apple's case could reach $15.6 billion, based on its 2012 fiscal year.

AGGREGATE PRICING

UBS analysts estimate that e-books account for about 30 percent of the U.S. book market and 20 percent of sales in Britain but are minuscule elsewhere. When Amazon launched its Kindle e-reader, it charged $9.99 per book.

Apple's agency model let publishers set prices in return for a 30 percent cut to the maker of iPhone and iPad.

The U.S. Department of Justice is investigating e-book prices. HarperCollins, Simon & Schuster and Hachette have settled, but Apple, Pengin Group and Macmillan have not.

The DOJ settlement required that retailers must at least break even selling all ebooks from a publisher's available list, according to Coker and Joe Wikert, general manager and publisher at O'Reilly Media Inc.

It was not clear if EU regulators will include a similar requirement, which would prohibit Amazon from pricing all ebooks at a loss, said Wikert, a former publishing executive.

In the United States, Amazon will likely price popular titles at a loss and try to make up the difference on a publisher's other ebooks, he said.

Coker said any such rule could be dangerous in Europe, which still has distinct markets.

"It could allow a single retailer to charge full price in a large market like the U.K., and then sell below cost or for free in multiple smaller markets as a strategy to kill regional ebook retailing upstarts before they take root," Coker said.

FROWNING ON ONLINE TRADE CURBS

Antitrust regulators tend to frown on restrictions on online trade and the case is a good example, said Mark Tricker, a partner at Brussels-based law firm Norton Rose.

"This case shows the online world continues to be a major focus for the Commission," he said.

"These markets change very quickly and if you don't stamp down on potential infringements of competition rules, you can have significant consequences."

(Additional reporting by Alistair Barr in San Francisco; Editing by Rex Merrifield, David Goodman and David Gregorio)

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