* ‘PM, Abdullah discuss J’lem split’ Prime Minister Ehud Olmert and Jordan’s King Abdullah II discussed the division of Israel’s capital during a brief visit Olmert held with the monarch Thursday.

* Bush urges Israel to take down W. Bank outposts US President George W. Bush on Thursday urged Israel to honor its commitment to remove West Bank outposts.

* Forget oil, the new global crisis is food A new crisis is emerging, a global food catastrophe that will reach further and be more crippling than anything the world has ever seen.

* Turkish army may hit harder after blast A deadly car bombing in Turkey’s southeastern city of Diyarbakir Thursday that killed five people and wounded 68 others has given the army more political ammunition to step up its attacks on Kurdish rebel positions.

* France to help Jordan develop nuclear energy program French President Nicolas Sarkozy arrived in Jordan on Friday on a semi-private, two-day visit, and met with King Abdullah II.

* Fatah loses support among Palestinians Despite international political and financial support, the popularity of the Fatah faction headed by Palestinian Authority President Mahmoud Abbas has declined over the past month.

* Kenya opposition rejects unity call Raila Odinga, Kenya’s opposition leader, has responded to calls for a national unity government from Mwai Kibaki, the president, by telling him to resign.

* Peres: Bush visit could mark passage from talk to action in peace process President Shimon Peres said Saturday that U.S. President George W. Bush’s first presidential trip to Israel and the West Bank next week could spur efforts to reach an Israeli-Palestinian peace agreement.

* Brussels praises smooth switch to euro in Cyprus and Malta The European Commission has praised the smooth changeover to the euro in the two newest eurozone member countries, Cyprus and Malta.

* Jerusalem Readies for Bush’s Arrival With hundreds of hotel rooms booked and municipal crews unfolding red, white and blue flags, Jerusalem is getting ready for its highest-profile visitor in years: President Bush.

* Huckabee, Obama enjoy huge night in Iowa Barack Obama and Mike Huckabee have claimed victories in Iowa’s first-in-the-nation caucuses..

* ‘Olmert, Abdullah II discussed division of Jerusalem’ Prime Minister Ehud Olmert and Jordan’s King Abdullah II discussed the division of Israel’s capital during a brief visit Olmert held with the monarch Thursday.

* Bush: Expansion of settlements hindering peace talks US President George W. Bush on Thursday called Israeli settlement expansion an “impediment” to the success of revived peace efforts.

* PA doesn’t want demilitarized Palestine The prospects for a breakthrough in the peace process in the near future have dwindled following reports that Israel will demand that the future Palestinian state be demilitarized.

* New English TV Show from Jerusalem Released for Internet Viewing It’s not every day that a TV show creates a whole new concept, a dimension of its own. But Tuesday Night Live in Jerusalem does just that.

* Hezbollah sets resolution terms The Lebanese opposition group Hezbollah has said openly that it will not allow a president to be elected unless it gets a third of the cabinet seats.

* EU must choose between Serbia and Kosovo, Belgrade says Serbia is stepping up its resistance towards the idea of Kosovo becoming independent.

* Kenya opposition wants new polls The opposition in Kenya has called for a re-run of the presidential election last week, which it says was rigged.

* Musharraf denies Bhutto death role Pakistani President Pervez Musharraf has said assassinated former prime minister Benazir Bhutto ignored government warnings.

* Libya takes charge of UN council A Libyan took over as president of the U.N. Security Council Thursday, capping the nation’s climb back to respectability.

* Olmert meets King Abdullah in a surprise visit to Jordan Prime Minister Ehud Olmert on Thursday made a surprise visit to Aqaba to meet with Jordan’s King Abdullah II.

* Hezbollah wants veto in Lebanon No president will be elected in Lebanon unless the Hezbollah-led opposition gets veto power in the future government, the leader of the militant group declared Wednesday.

* Musharraf: UK agrees to investigate Bhutto death Pakistani President Pervez Musharraf said Wednesday that he had requested a team of investigators from Britain’s Scotland Yard to assist in the investigation into the killing of opposition leader Benazir Bhutto.

* Bush to Visit Saudi Arabia Saudi Arabia’s king will urge President Bush when he visits the country later this month to apply pressure on Israel to halt settlements in Palestinian territories.

* Egypt Breaks Explicit Agreement with Israel Egypt is allowing some 1,200 Arabs – including Hamas terrorists – to return to Gaza without having to go through Israeli security.

* ‘Israel’s image hurt since pullout’ Israel’s image in the international media has deteriorated since the 2005 disengagement from the Gaza Strip.

* EU alarmed at post-election violence in Kenya The European Union has cast doubt over Kenya’s presidential election results and urged local leaders to prevent violence.

* Palestinian groups to meet in Syria on Jan. 23 Syria-based Palestinian factions opposed to peace with Israel decided Wednesday to hold their regional conference later this month in the Syrian capital.

* Oil hits $100 a barrel mark The price of crude has passed the psychological mark of $100 a barrel for the first time.

* 10,000 policemen to secure Bush visit In one of the largest security operations in years, more than 10,000 Israeli police officers will secure US President George W. Bush’s visit to Jerusalem next week.

By: Claude Salhani – Middle East Times

It has been a grim year for Pakistan. Since the start of 2007 the country has experienced 54 suicide terrorist attacks, including two Thursday, one of which killed Benazir Bhutto, a former prime minister and leader of the Pakistan People’s Party. Bhutto was a leading contender in January elections.

There have been five attacks this month alone, lifting the annual average to a fraction over one bombing a week.

Of the 54 attacks this year, 34 were against military related targets, including two against the Inter-Services Intelligence agency; two targeted the general headquarters of the Pakistani army in Rawalpindi; one was aimed at the air force in Sargodha and one at the U.S.-trained Special Services Group in Tarbela. Only the navy and its personnel have been spared from attacks until now. There were 10 attacks against the police.

Four of the 10 attacks on civilian targets were against political leaders, perceived as either supporters of Pakistan’s President Pervez Musharraf or as being pro-U.S. These were Bhutto, who escaped an assassination attempt in Karachi Oct. 18, after returning to Pakistan from a long political exile. Two attacks on Aftab Ahmed Khan Sherpao, a pro-Musharraf Pashtun leader of the Northwest Frontier Province who had escaped two earlier attempts to kill him. And Amir Muqam, another pro-Musharraf Pashtun leader, who also escaped an attempt on his life by a suicide bomber. The remaining six attacks were against miscellaneous civilian targets.

Until Thursday, the latest suicide attacks — one on the Muslim holy day of Eid, and the other two days after — have been reported from Charsaddha, the hometown of Sherpao, in the Swat valley of the NWFP, over which the government forces exercise only minimal control. The Swat valley has been the scene of bitter fighting between the Pakistani army and jihadis belonging to the pro-al-Qaida Tehrik-e-Nifaz-e-Shariat-e-Mohammadi group led by Maulana Fazlullah, popularly known as Maulana FM Radio, for his use of the airwaves.

Sherpao used to be a Pashtun loyalist of Bhutto and was an important office-bearer of her Pakistan People’s Party. Before the 2002 elections to the National Assembly, Musharraf and the ISI managed to persuade him to desert her and form his own faction of the PPP opposed to her. This desertion led to the marginalization of the PPP in the Pashtun areas. Musharraf rewarded him by making him minister of the interior. In that capacity, he served in the former cabinet of Shaukat Aziz, which has since been replaced by a caretaker government to organize the general elections scheduled for Jan. 8.

The basic result of this was that Musharraf took away from his charge all matters relating to the fight against terrorism in the Pashtun belt. The army directly handled this through the governor of the NWFP, a retired Pashtun army officer belonging to the Federally-Administered Tribal Areas, Lt.Gen. Muhammad Ali Jan Aurakzai.

The first attempt to kill Sherpao happened April 28, as he left a public meeting he had just addressed in his hometown. A suicide bomber blew himself up. Sherpao escaped, but 30 people — his security personnel and by-standers — were killed.

The second attempt to kill him was made by another suicide bomber at a local mosque in Charsaddha during Dec. 21 Eid prayers. Sherpao, who was among those praying, escaped, but 55 members of the congregation — including many of his security staff — were killed.

So far the police have not arrested anyone. Investigation into that attempt has just started. Al-Qaida, the Taliban, and their associates were observing a 10-day truce in connection with the Eid, which expired the following day.

The attack on Sherpao had taken place while the truce was being observed. It is, therefore, unlikely that any of these organizations might have been involved, according to one intelligence expert. According to Indian and U.S. intelligence sources Sherpao himself suspects that both attempts on his life were due to partisan Pashtun politics rather than to his role as interior minister.

On Dec. 23, five soldiers and six civilians were killed in the Mingora area of the Swat valley, when a suicide bomber, driving a vehicle, blew himself up alongside an army convoy. Sirajuddin, a spokesman for Fazlullah’s TNSM, has claimed responsibility for the attack on behalf of the newly formed Tehrik-e-Taliban-e-Pakistan.

Incidentally, a 10-day ultimatum issued by the Tehrik to the army expired Dec. 23. In it they demanded that the Pakistani government stops its military operations in the tribal areas and releases Maulana Abdel Aziz Ghazi, who was captured by security forces during a commando action at the Lal Masjid (Red Mosque) in Islamabad. They threatened to launch a joint fight against the government if their demands were not met.

The Dec. 23 attack disproves the army’s claim of having re-established its writ in the Swat valley.

Meanwhile, there has been a report of an attack on paramilitary personnel in the Kurram Agency, where there have been frequent Shiite-Sunni clashes this year. The Frontier Corps, who reportedly did not incur any casualties, retaliated killing five civilians. The identity of the assailants is unknown.

All this leads intelligence specialists to conclude that it is unrealistic to use Pakistan as a base of operations for any potential action against Iran.

Intelligence officers who asked to remain anonymous said they expect al-Qaida to make gains. U.S. intelligence analysts have speculated that al-Qaida is making accusations against Musharraf to destabilize the government.

By: Cahal Milmo – Independent News and Media Limited

Here comes the world’s newest superpower. The rest of the world is gloomily contemplating economic slowdown and even recession. Not in Beijing. China is set to make 2008 the year it asserts its status as a global colossus by flexing frightening economic muscle on international markets, enjoying unprecedented levels of domestic consumption and showcasing itself to a watching world with a glittering £20bn Olympic Games.

The world’s most populous nation will mark the next 12 months with a coming-of-age party that will confirm its transformation in three decades from one of the poorest countries of the 20th century into the globe’s third-largest economy, its hungriest (and most polluting) consumer and the engine room of economic growth.

Once regarded at best as a sporting also-ran, China is widely tipped to top the medals table in the Beijing Olympics in August, an event in which the country’s leadership is investing huge importance and prestige.

It will be a celebration viewed with consternation by many, as China’s authoritarian regime shows little sign of relaxing its grip on power and continues to expand its influence overseas from the oil fields and metal mines of Africa to the City of London. Appropriately, 2008 marks the Year of the Rat, an animal considered in Chinese folklore to be a harbinger and protector of material prosperity.

Britain will feel the full power of the new superpower’s confidence. This month, for the first time, China’s state-controlled banks will begin spending some of its $1.33trn (£670bn) in foreign currency reserves on London’s financial markets. Beijing has ruled that Britain should become only the second destination after Hong Kong to be allowed to receive investors’ money via so-called “sovereign funds” – the huge state-controlled surpluses built up by cash-rich economies from Qatar to South Korea. Throw in the biggest round of Chinese art exhibitions ever to tour these islands and the oriental bias to 2008 becomes even more pronounced.

The UK has made it clear that Beijing’s investment, which could reach as much as £45bn, is welcome and it follows the recent acquisition by Chinese banks of stakes in such blue chip stocks as Barclays and the US private equity firm Blackstone, at a cost of $3bn. The talk in the finance houses is that the label “Made in China” will soon be replaced by one reading “Owned by China”. Takeover speculation has provoked concern in some quarters at the wisdom of selling large assets to organs of a democratically unaccountable state where the financial sector remains underdeveloped.

China’s trade surplus with the rest of the world will widen from £130bn in 2007 to £145bn this year as it tries to tame its burgeoning economy amid pressure from Washington and Brussels to narrow the trade gap and raise its currency’s value.

Stephen Perry, chairman of the 48 Group Club, a Sino-British business network, said: “China has become an international player much more quickly than it would have wanted to do, in part to meet its need for natural resources. But I don’t think China has any intention of taking on American power. The West is important to China in this stage of its development as it seeks inward investment. But that is beginning to be much less important and it is looking more to the development of a strong Asia, in which it is one of the strongest players because of its enormous consumer base.”

But while some may question Beijing’s political motives, there is no doubt that China has arrived as serious power-broker. Last year, it surpassed America as the greatest driver of global economic demand. It is also widely predicted to overtake Germany as the world’s third largest economy this year.

While nearly all of its success since Premier Deng Xiaoping began China’s economic transformation in 1978 has been driven by producing goods for the outside world, the country has a burgeoning urban middle-class whose insatiable appetite for consumer durables is hoped to put the economy on a more stable footing. One London-based luxury markets analyst said: “The Chinese are waking up to quality brands in a way that is quite exciting. There is a real sense that what the West once kept to itself is now available to them, or at least the urban few who can afford it.”

The arrival of conspicuous consumption and entry of Shanghai’s sovereign funds into foreign investment markets, with London soon expected to be followed by the US, is symptomatic of a China increasingly willing to assert itself as a political and cultural influence, according to experts.

From global warming to Darfur and North Korea, the views of Beijing and its willingness to act have become prerequisites to any solution to the world’s most pressing problems.

The Chinese New Year on 7 February will herald the beginning of the largest-ever festival of China’s culture in Britain with an accent on contemporary artists in fields from video art to neon signs. But others warn 2008 has as much potential to be a disaster as a triumph for Beijing’s attempts to herald its own arrival on the world stage. The Chinese capital will host 31,000 journalists for the Olympics and any sign of protest or an attempt to quell dissent with violence would be catastrophic.

The drum beat of protectionism is already sounding in America and will only get louder in a presidential election year, putting pressure on both Republican and Democratic candidates to take a “strong” stance on China. In the meantime, Beijing will have to grapple with issues from rising inflation to Taiwan, which holds presidential elections in March, to its status as the world’s biggest emitter of carbon dioxide and likely role as the largest consumer of primary energy resources.

Dr Kerry Brown, associate fellow of the Royal Institute of International Affairs, said: “There are good reasons to feel pretty uncomfortable about 2008 for China. The world will be rightly watching China in August for the Olympics. But it will only take one truncheon blow to turn it away from a story about sport to one about repression.”

* Egypt’s decision to let Pilgrims cross Rafah enrages Israel Israeli defense officials blasted Egypt on Wednesday after Egypt allowed Palestinian pilgrims returning from Mecca to enter into the Gaza Strip through the Hamas-controlled Rafah Crossing.

* Syria hits back in row with Paris Syria says it is halting co-operation with France on efforts to resolve the Lebanese political crisis.

* No moving Jewish lips in prayer on Temple Mount, says Dichter A Jew is not allowed to pray in any overt manner whatsoever on the Temple Mount, even if he is just moving his lips in prayer.

* ‘Egypt working against us for years’ Egypt has worked to thwart Israel diplomatically in various international forums for years.

* Israel’s 60th Coming Up In honor of Israel’s upcoming 60th birthday, the World Zionist Organization has sent an educational kit on the topic to hundreds of Jewish communities around the world.

* 2008: The year a new superpower is born Here comes the world’s newest superpower. The rest of the world is gloomily contemplating economic slowdown and even recession.

* Kenya diplomatic push for peace Both sides in Kenya’s disputed election have accused the other of violence as diplomatic efforts to defuse the country’s political crisis intensify.

* Pakistan sets new election date Elections originally scheduled for 8 January in Pakistan will now take place on 18 February, polling officials say.

* ‘Tuesday Night Live’ Debuts in Jerusalem “Tuesday nights in Jerusalem will never be the same!” declared co-host Jeremy Gimpel at the close of the second hour of Tuesday Night Live.

* PMO: Talks with Bush to focus on Iran Talks between Israeli leaders and US President George W. Bush during his visit to the country next week will focus on both the Palestinian and the Iranian issues.

* ‘Israel must internalize divided J’lem’ Israel needs to internalize that even its supportive friends on the international stage conceive of the country’s future on the basis of the 1967 borders and with Jerusalem divided, Prime Minister Ehud Olmert has declared to The Jerusalem Post.

* ‘Turkey mediating between Israel, Syria’ Direct negotiations between Israel and Syria could materialize if the Turkish mediation which is allegedly underway is successful, Al-Hayat reported Tuesday.

* Kenyans burned to death in church Thirty Kenyans including many children have been burned to death in a church, after seeking refuge from the mounting violence over last week’s elections.

* Pakistan early poll ‘impossible’ The spokesman for Pakistan’s election commission has said that holding parliamentary elections as scheduled on 8 January “looks impossible”.

* Traditional family key to world peace: Pope Pope Benedict ushered in the third New Year of his pontificate on Tuesday with a call for the protection of the traditional family, which he said was vital for world peace.

* Palestinians who fled from Iraq seeking shelter in Sudan Some 2,000 Palestinian refugees who fled from Iraq are seeking shelter in Sudan.

* Gulf states form common market The wealthy six Gulf states have taken a step closer together economically with the formation of a common market.

* Jewish Agency, interfaith group deal angers U.S. Jewish leaders An agreement on increased cooperation between the Jewish Agency and the International Fellowship of Christians and Jews has upset many American Jewish leaders.

* Pres. Bush to be ‘Greeted’ in Israel by Land-of-Israel Faithful In honor of the upcoming visit of U.S. President George Bush to Israel, a rabbis’ group will deem the government “illegal,” soldiers will be encouraged to refuse orders to uproot Jewish communities, and activists will build more Jewish sites in Yesha.

* Small Slovenia takes on highly-charged EU agenda With just three years of European Union membership under its belt, Slovenia will take on the EU presidency today (1 January) landing itself a highly politicised agenda.

* Australia kicks off New Year’s parties A million revelers in Australia staked out prime spots along Sydney’s iconic Harbor Bridge foreshore Monday, ushering in 2008 with a massive fireworks display.

* Scores dead in Kenya poll clashes Scores of people have been killed across Kenya in violence blamed on the disputed presidential election.

* ‘Iran can help Egypt get nuclear energy’ Iran is willing to assist Egypt in developing the technology to produce nuclear energy, Ali Larijani, the head of Iran’s National Security Council, said on Sunday.

* Intel Community: ‘Military killed Bhutto’ Lower and middle level officers of the Pakistani army and the Pakistani air force were involved in the killing of former Prime Minister Benazir Bhutto, according to various intelligence sources, including members of India’s counter-intelligence service.

* Abbas expected to urge Hamas to accept early elections Palestinian President Mahmoud Abbas is expected on Monday to urge Hamas Islamists to agree to early elections, cede control of the Gaza Strip and hold talks with his Fatah faction, a Palestinian official said.

* Barak: Onus for conduct of war lies with government Defense Minister Ehud Barak said Monday that the overall responsibility for the conduct of the Second Lebanon War, including the decision to enter it and the decision to exit it, rests on the shoulders of the political echelon, regardless of the fact that the Knesset Foreign Affairs Committee chose not to focus on the government in its report.

* PM must OK new W. Bank construction As first reported by The Jerusalem Post on Sunday, Prime Minister Ehud Olmert has instructed government ministers that any new West Bank construction must first be authorized by him and Defense Minister Ehud Barak.

* UN to begin Darfur peace mission The new United Nations peacekeeping force for Darfur in Sudan is due to start its operations.

* Kosovo to test Slovenia leaders Sixteen years after independence, Slovenia takes up the presidency of the EU on Tuesday, offering to act as a bridge with the Balkans.

* Sharif opposes Pakistan election delay Former Pakistan premier Nawaz Sharif said today that elections should be held on time on Jan 8, adding that President Pervez Musharraf should be replaced by a national unity government.