* Clinton named secretary of state US President-elect Barack Obama has nominated his former rival Hillary Clinton as his secretary of state.

* Tension rises between India and Pakistan In a new sign of rising tensions between two nuclear-armed neighbors, Indian Foreign Ministry officials told Pakistan’s ambassador that Pakistanis were responsible and must be punished for last week’s terrorist attacks.

* Lebanese gov’t recognizes state of Palestine The Lebanese government has approved forming full diplomatic relations with what it calls the “state of Palestine,” and is elevating the office of the Palestine Liberation Organization in Beirut to the status of an embassy.

* Iran cuts Israeli military threats down to ‘psychological warfare’ Iran’s Foreign Ministry sought to downplay efforts by Israel to halt its nuclear program, saying that while Tehran does not take these threats seriously, it is fully prepared to respond in the event of an attack.

* Peace House Activists Preparing for Struggle Nationalist activists in Hevron have asked the public Monday to give them information regarding the government’s intention to expel the residents of Hevron’s Peace House.

* Crisis will help us regain power – Russia’s Communists Russia’s Communists expect the global financial crisis will cause social unrest and help them challenge for power, the party’s leader said.

* Iran proposes nuclear plants with Arab countries Teheran has proposed building joint light-water nuclear power plants with neighboring Arab countries, Iran’s official news agency said.

* Czechs unveil priorities for their turn at the EU presidency The economy, energy and external relations are the three priorities of the Czech EU presidency set to kick off on January 1.

* Britain closer to euro, Barroso says The global credit crunch has sparked a debate about joining the euro among “people who matter in Britain,” European Commission President Jose Manuel Barroso has said.

* Smart ID project underway in Israel Ministry of Interior awards HP with new contract, tasks company with manufacturing five million cards.