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• On Wednesday, the head of the EU's observer mission, Colette Flesch, told reporters that, while the presidential election was an important step for democracy in the central African country, it could not be called free and fair.
•  The EU says it found numerous irregularities, including voter intimidation by Mr. Kagame's supporters, ballot box stuffing, and fictitious voter lists. 

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Paul Kagame

The head of Rwanda's National Electoral Commission, Chrisologue Karangwa, accuses EU election observers of being biased in favour of Faustin Twagiramungu, the leading rival to President Paul Kagame.

 "What is said in their report comes from Mr. Twagiramungu's office," he said.

 Mr. Karangwa maintains that the August 25 election, which saw Mr. Kagame capture 95 percent of the vote, was free and fair. 

AP
Faustin Twagiramungu

 The EU says it found numerous irregularities, including voter intimidation by Mr. Kagame's supporters, ballot box stuffing, and fictitious voter lists. 

But Mr. Karangwa disputes these observations, saying that EU observers were making what he called political rather than electoral observations.

 "Their political observations were not based on real proof," said Chrisologue Karangwa.

 Monday's presidential election was the first in Rwanda since the genocide of 1994, in which Hutu extremists killed up to one million Tutsis and moderate Hutus.
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VOA Interview: Rwandan President Pledges Reconciliation for His Ethnically Divided Nation UN Splits Duties of Special War Crimes Tribunal Prosecutor Del Ponte EU Observers Report Rwanda Election Irregularities Rwanda Officials Say Incumbant President Wins Landslide Election

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• Earlier this month Argentina's Senate voted to abolish amnesty laws which protect members of the former military government from prosecution for human rights abuses. 
• The vote opens the way for charges to be brought against hundreds of security officials suspected of murder and torture during the military dictatorship - although the Supreme Court will now have the final say on the matter.

Argentine victims persuaded Garzon of their cause

The request had been made by Spanish High Court Judge Baltasar Garzon who hopes to try them for crimes committed under Argentina's military junta between 1976-1983.

But Spanish Deputy Prime Minister Mariano Rajoy said the prosecutions should take place in Argentina.

"We believe in the firm commitment of the Argentine Government to pursue the prosecution of these people, as the president (Nestor Kirchner) has said numerous times and for that reason... we have decided not to request their extradition," he told correspondents. 

Earlier this month Argentina's Senate voted to abolish amnesty laws which protect members of the former military government from prosecution for human rights abuses. 

The vote opens the way for charges to be brought against hundreds of security officials suspected of murder and torture during the military dictatorship - although the Supreme Court will now have the final say on the matter.

Campaigning judge

Judge Baltasar Garzon had requested the extradition of the 39 former military officials and one civilian to face charges of genocide, torture and terrorism during that time. 

In filing his requests, he acknowledged the repeal of the laws in Argentina and the possibility that the suspects might be tried in their country. 

But he said that for the time being, it would be "imprudent" not to press ahead with his case for extradition.

He says the Argentine military junta's attempt to wipe out an entire group of people amounted to attempted genocide.

Top names on the list include two former leaders of the military junta, Jorge Videla and Emilio Massera.

Official estimates say about 9,000 Argentines died or vanished during the junta years, but human rights groups say the figure could be as high as 30,000.

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. SEE ALSO:  Argentina scraps amnesty laws  21 Aug 03  |  Americas  Argentina overturns amnesty laws  13 Aug 03  |  Americas  Argentina's long wait for justice  26 Jul 03  |  Americas  Argentine suspects freed  23 Jul 03  |  Americas  Argentine faces 'dirty war' trial  11 Jun 03  |  Americas  RELATED INTERNET LINKS:  The Vanished Gallery - Information on the Disappeared  Human Rights Watch  The BBC is not responsible for the content of external internet sites  TOP EUROPE STORIES NOW  'Over 11,000' dead in French heat  Italian red carpet for Putin  Blair strategy chief quits  BP completes Russia deal  .

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US shopping malls were busy last month

The University of Michigan's closely watched consumer sentiment index for August dipped from 90.0 in July to 89.3, below the 90.5 predicted by Wall Street analysts.

The decline was attributed to worries about a stagnant jobs market and high fuel prices, which have climbed in recent weeks due to strong holiday season demand.

But the Michigan index remains some 12 points above the nine-year low it touched in mid-March, during the early stages of the war in Iraq.

And separate government figures showing that consumer spending surged by 0.8% between June and July, the biggest monthly increase since March, suggested that consumer spending is likely to remain solid.

Tax incentive

Consumer spending is of critical importance to growth in the US, accounting for two thirds of economic activity.

The US government said the increase in spending reflected tax cuts pushed through earlier this year by President George W. Bush.

Higher levels of spending have also been encouraged by hints from the US Federal Reserve, the country's central bank, that interest rates will remain at their current 45-year low of 1% for some time to come.

The latest broadly encouraging snapshot of consumer activity will reinforce the view that the US may finally be emerging from a three-year spell of sluggish growth - tipping over briefly into outright recession - which began three years ago.

Hopes of an imminent rebound received a boost on Thursday when official figures showed that the world's biggest economy grew by a better than expected 3.1% in the three months to June. 
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. THE US ECONOMY ON THE ROAD TO RECOVERY? ECONOMIC INDICATORS Growth higher in Q2  Jobless rate falls  Gloomy consumers  Prices ease deflation fears  FEARS AND HOPES Eonomy confounds the sceptics  Should we worry about deflation?  Bush's tax cut politics  US backs off from 'strong dollar'  INTEREST RATE DECISIONS Fed holds rates at 1%  Greenspan cuts growth forecast  Fed sees signs of recovery  RELATED INTERNET LINKS:  Department of Commerce  The BBC is not responsible for the content of external internet sites  TOP BUSINESS STORIES NOW  Probe into Europe's GMO policy  US consumers hold their nerve  Olympic Airways born again  S Korea boosts defence budget  .

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• Nothing is likely to come of the investigation for at least 18 months, the probable length of the three-judge inquiry.
• In the meantime, the EU's new policy on GMO-related labelling should have time to bed down.
• EU farm ministers agreed last month to move from a blanket ban to a stringent system of labelling when GM ingredients are used either in foodstuffs for human consumption or in animal feed.
• But the US says that will still discriminate against its farmers, given the much more widespread use of GMOs in US agriculture.
• The vast majority of US soy, for example, is GM.
• The US insists that there is no scientific evidence proving damage to either human health or the environment, and that the EU's "precautionary principle" goes too far.

The complaints - made by the US and backed by Canada and Argentina - argue that European Union (EU) policy on GMOs violates world trade rules. 

Since 1998, the EU has not allowed new genetically modified crops to be imported or grown in the 15 EU states. 

The EU has denied breaking trade rules. 

Change of plan

Nothing is likely to come of the investigation for at least 18 months, the probable length of the three-judge inquiry.

In the meantime, the EU's new policy on GMO-related labelling should have time to bed down.

EU farm ministers agreed last month to move from a blanket ban to a stringent system of labelling when GM ingredients are used either in foodstuffs for human consumption or in animal feed.

But the US says that will still discriminate against its farmers, given the much more widespread use of GMOs in US agriculture.

The vast majority of US soy, for example, is GM.

The US insists that there is no scientific evidence proving damage to either human health or the environment, and that the EU's "precautionary principle" goes too far.

Sour mood

Separately, the WTO said it would also look into complaints against the EU's sugar subsidy regime brought by Brazil, Australia and Thailand.

The three complainants say the EU, the world's largest sugar exporter, helps distorts world prices by supporting its sugar farmers to the tune of billions of dollars.

The EU rejected the complaint.

"We are confident we are in full compliance with WTO rules," said a spokesman for EU agriculture commissioner Franz Fischler.

One plank of the EU's defence is that it helps sugar producers in developing countries by importing sugar at the subsidised EU price. 
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. SEE ALSO:  World cheap drugs deal delayed  29 Aug 03  |  Health  Cool reception for WTO plan  25 Aug 03  |  Business  US steel tariffs 'break WTO rules'  11 Jul 03  |  Business  Doubts beset biosafety treaty  27 May 03  |  Science/Nature  RELATED INTERNET LINKS:  WTO  The BBC is not responsible for the content of external internet sites  TOP BUSINESS STORIES NOW  Probe into Europe's GMO policy  US consumers hold their nerve  S Korea boosts defence budget  W.African leaders discuss union  .

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H-I-V anti-retroviral drugs

The World Trade Organization failed Thursday to clinch what many considered a done deal on a trade rule to allow poor countries to import cheap copies of patented drugs to combat diseases like HIV AIDS, malaria and tuberculosis. But its officials say an agreement is still possible. 

Chief WTO spokesman Keith Rockwell says negotiators are trying to find a solution before a five-day trade summit in Cancun, Mexico starts on September 10.

 "Everybody remains committed to try to find a way forward," he said. "Decision-making by consensus in a 146-member organization is never an easy thing. What we hope is that with a little bit more time, a little bit better grasp of the issues, a little bit better understanding between partners as to what it is that they want, where their comfort level lies, that some kind of agreement can be brokered over the next day or two. But it remains unclear." 

After months of deliberations, agreement had been expected Thursday. But negotiators said last minute requests from several countries, including Argentina and the Philippines, to make statements on their interpretations of the agreement halted what was thought to be a rubber stamp ruling.

 WTO spokesman Keith Rockwell says it became clear that negotiators had different perspectives on the text and the decision was not going to be quickly reached. 

He says the decision would permit developing countries access to patented drugs they could not normally afford by allowing them to import cheaper generic drugs from foreign suppliers. Under the agreement, he says, the WTO member states promise not to abuse the system and not to import generic drugs for commercial gain.

 "It's a humanitarian issue and to show that this organization is committing to addressing, what is for governments in the developing world the most important issue, the safety and well-being of their people, is something which is of paramount importance to us," emphasized Mr. Rockwell. 

Big drug companies have welcomed the plan. But some health activists say the proposed pact poses new obstacles to importing cheap generic drugs.
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Millions in Poor Nations to Receive Cheaper Drugs Under WTO Deal

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Two U.S. soldiers in Afghanistan and four Taleban fighters have been killed in a seventh day of intense fighting near Pakistan's border. A U.S. Central Command statement says the U.S. troops came under daylight attack Sunday in Paktika province near a U.S. firebase. 

The Taleban fighters were killed in an ensuing 90-minute battle. Authorities are describing the Afghan-U.S. push against the Taleban as a major operation aimed at clearing out hundreds of militants entrenched in the remote Dai Chopan region. The operation began last Monday. U.S. and Afghan forces are reporting stiff resistance. 

The Associated Press quotes an Afghan military commander in the region as saying that more than 250 Taleban fighters have infiltrated the mountainous Dai Chopan area in recent days. 

Earlier Sunday, the intelligence chief in nearby Zabul province said Afghan troops and U.S. Special forces, backed by U.S. jets and helicopters, killed at least 14 enemy combatants overnight. 

The intelligence chief, Khalil Hotak, estimates that coalition forces have killed nearly 100 Taleban fighters in the past week, but that account has not been confirmed. Speaking Saturday, a U.S. military spokesman said 33 enemy fighters were killed during the first three days of fighting.
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Dozens of Suspected Taleban Fighters Killed in Afghanistan Adoption of New Afghan Constitution Delayed for 2 Months Fighting Against Militants Intensifies in SE Afghanistan

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AP
Participants of Beijing talks

 The North Korean threat came in a statement from the Foreign Ministry, carried by the country's official news agency on Saturday. 

A Foreign Ministry spokesman was quoted as calling the three-day talks in Beijing, which ended Friday, "not only useless, but harmful."

 The statement followed similar remarks Saturday by one of the North Korean delegates, as his group left Beijing for home.

 The Foreign Ministry statement accused the participants, including the United States, of using this week's talks to force the North into disarming. The statement said Pyongyang believes it has no alternative but to bolster its defenses by continuing to develop what the statement referred to as its "nuclear deterrent." 

AP
North Korean chief delegate Kim Yong Il

The aim of the six-nation talks is to persuade the North to end its nuclear program. China, the host for the talks, announced Friday that all parties had agreed to a second round about two months from now, which was taken as a positive sign, but Saturday's remarks by the North Koreans raised doubts about that.

 However, one Western diplomat in Beijing characterized the North Korean remarks as blustering on Pyongyang's part, the type of comments the communist country has traditionally employed during lengthy negotiations. 

That assessment was echoed by David Zweig, a political science professor at Hong Kong's University of Science and Technology. He said that despite the comments, North Korean officials probably believe it is in their best interest to keep negotiating. 

"My own view is that they actually want a deal," he said. "They may be afraid that the Americans are not going to come forward with any kind of movement on this and that they are just going to hold their position. And the way they believe that you would pressure the Americans to make some concessions is to threaten to blow the whole thing wide open."

 Saying it fears an attack by the United States, North Korea's main demand has been for Washington to sign a non-aggression pact.
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The United States has ruled out a formal treaty, although it says it will give written assurances that it will not attack the North. However, Washington says North Korea first must dismantle its nuclear program in a verifiable manner.
 
 

AP
U.S. Assistant Secretary of State, James Kelly, left, walks with U.S. Ambassador to China, Clark T. Randt, after conclusion of second day of talks

 The head of the U.S. delegation to the talks, Assistant Secretary of State James Kelly, left Beijing Saturday calling the discussions a "productive start."
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Other participants also labeled the meeting a good first step toward ending the 10-month-old nuclear crisis.
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US Cheered by N. Korean Nuclear Talks North Korean Talks Participants Pledge to Meet Again

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• Meanwhile, tens of thousands of grieving Iraqi Shi'ite Muslims marched through Baghdad in a funeral procession for Ayatollah Mohammed Baqir Al-Hakim, who was killed in the deadly blasts. 
• The three-day procession will travel some 160 kilometers south to Najaf--where the ayatollah's remains will be buried Tuesday. 
• There has been no claim of responsibility for the mosque bombing. Iraqi police say they have detained 19 people in connection with the attack, including at least two Saudi suspects. 
• Later, an unidentified Saudi Foreign Ministry official challenged reports that Saudi nationals were involved in the bombing, adding the accusations were made without proof. 
• Authorities are trying to determine whether the attack was the work of Sunni militants loyal to Saddam Hussein, foreign al-Qaida terrorists, or Shi'ite rivals of the ayatollah. 

The Federal Bureau of Investigation says it will join the probe into Friday's car bomb attack in the Iraqi city of Najaf that killed at least 83 people, including a top Shi'ite Muslim leader. 

FBI officials say the provisional government of Najaf requested U.S. authorities help investigate the bombing of the Shi'ite mosque. The officials say the FBI will work with Iraqi police and provide forensic analysis. 

Meanwhile, tens of thousands of grieving Iraqi Shi'ite Muslims marched through Baghdad in a funeral procession for Ayatollah Mohammed Baqir Al-Hakim, who was killed in the deadly blasts. 

The three-day procession will travel some 160 kilometers south to Najaf--where the ayatollah's remains will be buried Tuesday. 

There has been no claim of responsibility for the mosque bombing. Iraqi police say they have detained 19 people in connection with the attack, including at least two Saudi suspects. 

Later, an unidentified Saudi Foreign Ministry official challenged reports that Saudi nationals were involved in the bombing, adding the accusations were made without proof. 

Authorities are trying to determine whether the attack was the work of Sunni militants loyal to Saddam Hussein, foreign al-Qaida terrorists, or Shi'ite rivals of the ayatollah. 

Meanwhile, the U.S. military said six Iraqis were killed and two U.S. soldiers wounded Saturday after a U.S. convoy was attacked near the northern city of Kirkuk. 

Some information for this report provided by AFP and AP.

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Libyan leader Moammar Gadhafi says a new deal has been reached with France to compensate the families of the victims of the 1989 bombing of a French airliner over Niger. 

Mr. Gadhafi made the announcement in Tripoli late Sunday during a televised speech marking the 34th anniversary of his rise to power. He gave no details of the agreement with France, but predicted a new era in relations with the West. 

The French government and the victims' families have yet to confirm the deal. 

Libya was blamed for blowing up the UTA flight in 1989, killing 170 people. It never accepted responsibility, but paid the victims' relatives $33 million after a French court convicted six Libyan agents. 

France demanded a bigger settlement after Libya agreed two weeks ago to pay $2.7 billion to the 270 families of the 1988 bombing of a Pam Am flight over Lockerbie, Scotland. Libya also renounced terrorism and promised to cooperate with any further Lockerbie investigations. 

France had threatened to veto a United Nations Security Council resolution that would accept the Lockerbie deal and lift sanctions on Libya unless a new settlement for the UTA families was reached. The United States strongly warned France against a veto. 

Some information for this report provided by Reuters and AP.

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