New policies for to pay ransom on hostages

WASHINGTON (AP) — President Barack Obama said Wednesday that the U.S. government had let down the families of Americans held hostage by terrorists, and he outlined new policies that could make it easier for those families to pay ransom to help free their loved ones.

“These families have already suffered enough and they should never feel ignored or victimized by their own government,” Obama said as he detailed the results of a six-month review of U.S. hostage policy.

The review’s conclusions aim to streamline and improve communications with families, who have sharply criticized the government for providing them with confusing and contradictory information. Some families have complained about threats of criminal prosecution if they seek to pay ransom to terrorists ”“ threats Obama said would end.

“The last thing we should ever do is add to a family’s pain with threats like that,” Obama said.

The president’s pledge essentially clears the way for families to take actions the U.S. government has long said put Americans abroad at greater risk. While no formal changes were being made to a law prohibiting material support for terrorists, the Justice Department indicated it would not hold families accountable if they pursue ransom payments.

US reportedly

not spying on Holland

WASHINGTON (AP) — The White House says President Barack Obama has told French President Francois Hollande that the U.S. isn’t targeting his communications.

The leaders spoke by telephone Wednesday as the French were angered by new reports of American spying.

The revelations came from WikiLeaks regarding National Security Agency intercepts of conversations involving Hollande and his two predecessors between 2006 and 2012.

The White House says Obama told Hollande that the U.S. was abiding by a commitment Obama made in 2013 not to spy on the French leader after Edward Snowden disclosed the extent of NSA surveillance powers.

The White House says Obama pledged to continue close cooperation with France on matters of intelligence and security.

US economy shrank

0.2 pct. in 1st quarter

WASHINGTON (AP) — The U.S. economy contracted in the first three months of the year, just not as much as previously estimated. More recent data show that the weakness was largely temporary, with a rebound in the works for the April-June quarter.

The Commerce Department says the economy, as measured by the gross domestic product, shrank at a seasonally adjusted annual rate of 0.2 percent from January through March. That’s better than last month’s estimate of a 0.7 percent decrease.

Harsh winter weather slowed spending by keeping consumers away from shopping malls and auto dealerships. The trade deficit ballooned, slicing growth by the most since 1985 as exports fell and imports rose.

Yet consumers stepped up their spending in May, and home sales climbed ”“ signs that the economy is back on track.