* Iraqi Political Leaders Forge New Pact Iraq’s political leaders emerged Thursday from three days of crisis talks with a new alliance that seeks to save the crumbling U.S.-backed government.

* PM, Abbas negotiate core issues on founding Palestinian state Talks between Prime Minister Ehud Olmert and Palestinian Authority Chairman Mahmoud Abbas on a future Palestinian state are stuck on the issue of the Palestinian refugee problem.

* Russia-China war games boost ties Russian and Chinese troops have staged a series of dramatic war games in Russia’s Ural Mountains at the close of the annual summit of the Shanghai Cooperation Organisation.

* Riyadh: Syria spreading chaos in the Middle East Saudi Arabia accused Syria on Thursday of attempting to destabilize the region and spread chaos.

* Israel, US try to maintain military edge With a new $30-billion, 10-year aid package from the US in the bag, Israeli and American officials are now discussing what military equipment Israel can buy and Saudi Arabia can’t.

* Nato ‘tracking’ Russian bombers Russian long-range bombers have flown over the Atlantic and Pacific oceans in a military drill.

* Internet use could kill off local newspapers, study finds News audiences are ditching television and newspapers and using the Internet as their main source of information.

* Gadhafi Son Warns of More Europe Attacks Islamic extremists are certain to carry out more terrorist attacks in Europe, and any country that engages itself militarily in Iraq or Afghanistan is a likely target.

* Fayyad sheds mild-mannered image Tough talk doesn’t come naturally to Salam Fayyad. The 55-year-old former World Bank employee.

* India parties mull nuclear deal Communist allies of India’s government are holding meetings to discuss their opposition to a landmark nuclear deal with the US.