WESTERN EUROPE

E.U. TO BAIL OUT PALESTINIANS

BRUSSELS, Belgium – The European Union yesterday offered $143 million to help the Palestinian Authority despite the recent election victory by terror group Hamas. It said that most of the aid money would bypass the government and meet “the basic human needs of the Palestinian population.”

About $21 million would go to the Palestinian Authority to “relieve the pressure on the caretaker government” and help pay salaries, the European External Affairs Commissioner, Benita Ferrero-Waldner, announced. This money will come from the remains of an $83 million trust fund that was frozen last year by the World Bank in protest at corruption and bad governance by the outgoing former Palestinian administration.

– The Daily Telegraph

E.U. THREATENS TO FREEZE TALKS WITH SERBIA

BRUSSELS, Belgium – E.U. foreign ministers threatened yesterday to freeze talks with Serbia on its E.U. membership bid, setting a March deadline for Belgrade to hand over war crimes fugitive Ratko Mladic. The E.U. Enlargement Commissioner, Olli Rehn, warned Belgrade that talks scheduled for April could be postponed if Mladic has not been handed over to the U.N. war crimes tribunal by the end of March, his spokeswoman said.

– Associated Press

IRAN DETERMINED TO EXPAND ENRICHMENT PROGRAM

VIENNA, Austria – Iran appears determined to expand its uranium enrichment program, the International Atomic Energy Agency said in a new report yesterday. The U.N. watchdog, in a confidential report made available to the Associated Press, said Iran plans to start setting up thousands of uranium enriching centrifuges this year even as it negotiates with Russia on scrapping such activity. The IAEA also suggested that unless Iran increases its cooperation, the agency would not be able to establish whether past clandestine activities were focused on making nuclear arms.

The report, prepared by the IAEA’s head, Mohamed ElBaradei, for a March 6 meeting of the agency’s 35-country board of governors, could help determine what action the Security Council will take.

– Associated Press

PERSIAN GULF

IRAQI FORCES CAPTURE SENIOR INSURGENT

BAGHDAD, Iraq – Iraqi security forces announced yesterday the capture of a senior Al Qaeda in Iraq figure, Abou al-Farouq, a Syrian who financed and coordinated groups working for Iraq’s most wanted terrorist, Abu Musab al-Zarqawi, as they sought to deflect criticism of their handling of a surge of sectarian attacks last week. The American ambassador said the risk of civil war is over.

Violence throughout Iraq killed 36 people, as fierce fighting broke out between Iraqi commandos and insurgents southeast of the capital. But sectarian clashes have declined sharply since the bloodletting that followed the destruction of a Shiite shrine, and Baghdad residents returned to their jobs after three days of a government-imposed curfew.

– Associated Press

EASTERN EUROPE

BOSNIA LAUNCHES GENOCIDE CASE AGAINST SERBIA

BELGRADE, Serbia-Montenegro – Bosnia launched a landmark lawsuit against Serbia and Montenegro in the U.N.’s highest court yesterday, accusing its neighbor of the worst act of genocide in Europe since the Holocaust. The case, heard by the International Court of Justice in The Hague, marks the first time that a state has stood trial for the crime.

The charge sheet lists atrocities such as the slaughter of civilians, mass rape, the destruction of mosques and cultural heritage sites. and the establishment of “extermination camps.” If the court finds that Serbia was determined to wipe out Bosnian Muslims, the state could face huge claims for compensation as well as ignominy for generations ahead.

– The Daily Telegraph

EAST ASIA

TAIWAN DEFIES CHINA BY AXING UNITY BODY

BEIJING – Taiwan’s president risked confrontation with Beijing and Washington yesterday by scrapping the body dedicated to reuniting the island with the Chinese mainland. President Chen’s decision to “terminate” the National Reunification Council is certain to outrage Beijing, which regards him as a troublemaker intent on declaring independence. The Bush administration has sent Mr. Chen repeated warnings not to challenge the status quo, fearing it might be drawn into conflict with Beijing.

– The Daily Telegraph