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Obama, McChrystal meet on Air Force One

ABOARD AIR FORCE ONE, Oct. 2 (UPI) -- U.S. Gen. Stanley McChrystal, commander of U.S. troops in Afghanistan, met with President Obama to discuss Afghanistan and Pakistan, the White House said.

McChrystal flew from London, where he delivered a speech, to Copenhagen, Denmark, where Obama spoke to the International Olympic Committee about Chicago's bid for the 2016 Summer Olympics, White House spokesman Robert Gibbs said. The two met privately aboard Air Force One as it returned to Washington.

"(The) President realized that (McChrystal) would be close and thought it was a good opportunity to continue the conversation and discussion about Afghanistan and Pakistan" that began in September and continued Wednesday in Washington, Gibbs said.

In an assessment, McChrystal called for an increase in U.S. troops in Afghanistan as well as a shift in America's Afghan strategy. McChrystal's assessment warned that without additional troops by next year, the conflict "likely will result in failure." The requested troop surge would be in addition to the 68,000 U.S. soldiers expected by the end of this year.

The genesis for the forward cabin meeting between Obama and McChrystal came during a phone conversation before Wednesday's meeting, Gibbs told reporters during a briefing on aboard the plane.

"The president wanted to take the opportunity to get together with General McChrystal and continue the conversation that they had as part of the meeting on Wednesday," he said.

Senate panel wraps up health reform work

WASHINGTON, Oct. 2 (UPI) -- The U.S. Senate Finance Committee worked until early Friday to complete work on its healthcare bill, preparing it for a committee vote next week.

The Finance Committee finished its work just after 2 a.m. Friday on the proposal expected to be the basis of the Senate's health reform legislation when floor debate begins, The Washington Post reported.

Finance Committee Chairman Max Baucus, D-Mont., delayed a vote until next week, though he said he has enough support to pass it out of committee.

"We can all be very proud of what we have achieved here," Baucus said.

President Barack Obama praised the committee and Baucus's leadership during the bill's mark-up.

"Over the past two weeks, the committee has engaged in long hours of thoughtful deliberation and vigorous debate," Obama said in a statement. "They have considered hundreds of amendments, and incorporated many of the best ideas from both parties. And they have shown a spirit of civility, a seriousness of purpose, and a willingness to compromise that embodies our democratic process at its very best."

Committee Republicans said the measure was rife with revenue provisions that would violate Obama's campaign pledge not to raise taxes on middle-class Americans.

"There are going to be a lot of people whose taxes are increased by this legislation," said Sen. Michael D. Crapo, R-Idaho.

Democrats said wide support for reform would drive the effort to passage.

"Every Democrat, from the most liberal to the most conservative, realizes that it serves America's interest and our own interest to pass a bill," said Sen. Charles E. Schumer, D-N.Y.

Britain's Blair possible EU president

LONDON, Oct. 2 (UPI) -- Former British Prime Minister Tony Blair could be named European Union president if Ireland OKs changes to the EU's decision-making process, officials said.

Sources told The Times of London that French President Nicolas Sarkozy determined Blair was the best candidate and that German Chancellor Angela Merkel's opposition has lessened.

Blair has indicated he wouldn't enter the race unless he was assured of a win, in part because of his reluctance to give up his other commitments in business, the Middle East and climate change, The Times reported Friday. He could be elected to the post during a summit Oct. 29.

Merkel had opposed Blair's candidacy because she thinks the EU presidency should go to a country that had adopted the euro. British sources said that she may now be amenable if Germany and France get plum posts in the new European Commission, The Times said.

If Ireland ratifies the Lisbon treaty, only the signatures of the Polish and Czech presidents would be needed for ratification. The treaty can't take effect unless all EU members ratify it.

Irish voters voted on the referendum Friday. Results were expected Saturday.

The Lisbon Treaty would streamline decision making in the bloc and expand the policy areas subject to qualified majority voting instead of unanimity, the BBC said. It also would establish a new post of president of the European Council and a high representative for foreign affairs.

High court rejects Suu Kyi appeal

YANGON, Myanmar, Oct. 2 (UPI) -- Myanmar's Yangon divisional court Friday rejected an appeal by Aung San Suu Kyi of her conviction for violating house arrest, officials said.

Suu Kyi, 64, general secretary of the National League for Democracy, was serving a reduced 18-month sentence when an American, John William Yettaw, sneaked into her restricted home by swimming across the Inya Lake in Yangon, China's state-run Xinhua news service reported.

A new trial found her guilty of harboring Yettaw for three days, a violation of the house arrest agreement. The conviction restored the full 3-year sentence but it was commuted again to 18 months.

Yettaw was sentenced to seven years in jail but was released and deported as requested by U.S. Sen. Jim Webb, D- Va., head of the Senate East Asian and Pacific Affairs subcommittee.

Shalit says captors treating him well

JERUSALEM, Oct. 2 (UPI) -- Israel freed a group of Palestinian prisoners following verification by security officials of a video tape of captured soldier Gilad Shalit, officials said.

"Shalom I am Gilad, son of Noam and Aviva Shalit, brother of Hadas and Yoel," Gilad Shalit said in the first video tape of him since his kidnapping more than three years ago.

Shortly after Gilad's family saw the 2.42-minute video Friday, it was broadcast on the major Israeli television networks.

Shalit was on operational duty near Gaza in June 2006 when he was kidnapped in a cross border raid and taken to Gaza where he has been held since.

Holding a copy of the Falastin al-Youm published in Gaza and dated Sept. 14, Gilad read prepared remarks from a page held inside the newspaper.

Dressed in olive green military fatigues, he was clean-shaven, but appeared extremely thin. After reading from the page, he walked towards the camera before sitting down in the white plastic chair.

"I have waited a long time for the day of my release and I hope the current government led by Binyamin Netanyahu will not waste time in reaching a deal, ...," he said.

The prime minister's office issued a statement saying Netanyahu holds Hamas responsible for Gilad's health and well-being. Netanyahu said the tape is an encouraging sign.

Hagai Hadas, the Israeli envoy charged with negotiating Shalit's release, OK'd the release of 19 female prisoners at crossings in the West Bank and Gaza after the tape was handed over, Maariv reported.

On Wednesday, Israel agreed to release 20 female prisoners in exchange for proof Shalit is alive and well. One of the women was released Thursday because her sentence had been completed.

Rio, Madrid finalists for 2016 Olympics

COPENHAGEN, Denmark, Oct. 2 (UPI) -- Rio de Janeiro and Madrid Friday survived the first round of voting by the International Olympic Committee choosing the host site for the 2016 Summer Olympics.

Chicago was the first city eliminated from the voting with the fewest supporters, followed by Tokyo.

Thousands of people gathered at rally at Daley Plaza in Chicago let out an audible gasp as the result of the first round of voting was announced in Copenhagen, Denmark.

Tokyo was eliminated in the second round, leaving Rio de Janiero and Madrid as the two finalist cities for the Games.

Chicago was eliminated despite an appearance in Copenhagen Friday by President Barack Obama.

"To host athletes and visitors from every corner of the globe is a high honor and a great responsibility," Obama told the IOC. "We are a nation that has always opened its arms to the citizens of the world -- including my own father -- who have sought something better; who have dreamed of something bigger."

In his presentation, Obama spoke of Chicago's international character.

Obama's remarks capped a presentation that included Chicago Mayor Richard M. Daley and first lady Michelle Obama.