Bali denies attack warning

Balinese authorities are insisting that the island's governor never warned of a possible New Year's Eve attack.

An Indonesian police officer stands guard at Kuta beach in Bali, Indonesia on Thursday, Dec. 31, 2009. The U.S. Embassy warned Thursday of a possible New Year's Eve terrorist attack on Indonesia's Bali island, based on information from the popular resort's governor, but security officials said they were unaware of a threat. (AP Photo/Firdia Lisnawati)

The US Embassy in Jakarta issued a statement Thursday saying the Indonesian resort island faces the risk of attack on New Year's Eve. The Embassy quoted the island's governor. But the governor's office denies making any such comment.

Bali police also said they were not aware of a threat and always try to ensure security is as tight as possible. Hundreds of hotels, restaurants and clubs in Bali are expected to be packed on Thursday night, with tourism the mainstay of the economy in the Hindu enclave.