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DAWN - the Internet Edition


September 1, 2005 Thursday Rajab 26, 1426


Updated round-the-clock, with major updates after 10:00 PST (05:00 GMT)

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Pakistan, Israel hold historic talks ISTANBUL, Sept 1 (AFP) - Israeli Foreign Minister Silvan Shalom and his Pakistani counterpart Khurshid Kasuri met here on Thursday in the first-ever high level encounter between the two countries. The two ministers were upbeat as they emerged from the talks arranged after Turkey played a key mediating role to bring them together. In a joint press conference with Shalom, Kasuri hailed Israel's pullout from the Gaza Strip, which he said constituted a turning point for the establishment of a Palestinian state."Pakistan has therefore decided to engage with Israel," he told reporters but did not elaborate on what sort of an engagement his country was planning. Shalom, for his part, said the meeting heralded a new era in bilateral ties. "This is a historic meeting," the Israeli minister said. "We see this meeting as the beginning of a new period, the beginning of open and useful mutual relations." He praised the "courage" of President Pervez Musharraf in "supporting peace between Israel and the Muslim World".The two ministers are expected to hold separate press conferences later in the day."It is premature to speak about establishing diplomatic relations, but it is definitely a step towards normalization of relations," the spokeswoman for the Israeli embassy told AFP. Israel currently has full diplomatic relations with only three Arab states -- Mauritania, Egypt and Jordan -- and a handful of Muslim majority states including Turkey.(Posted @ 18:12 PST)


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Musharraf says Pakistan-Israel talks had Palestinian, Saudi backing QUETTA, Pakistan, Sept 1 (AFP) - President Pervez Musharraf defended a meeting Thursday between the Pakistani and Israeli foreign ministers, saying it was backed by Saudi Arabia's King Abdullah and Palestinian leader Mahmoud Abbas. He however said the talks did not mean Pakistan was ready to recognise the Jewish state. "We consulted his highness Saudi King Abdullah and Palestinian leader Mahmoud Abbas -- both appreciated our move and gave us the go-ahead signal," Musharraf told reporters in Quetta. The meeting was part of his government's policy to move forward internationally, he added. "We cannot live in isolation" "Forward-looking countries perceive changes in advance. They formulate their policies according to the changing world scenario, "he observed. Musharraf praised Israel's pullout from the Gaza Strip as a "positive step" but said the aim of Thursday's talks was to promote the Palestinian cause. He added that Pakistan's move "should not be misconstrued". Musharraf reiterated Pakistan's long-held stance stance that diplomatic ties could only be considered once a Palestinian homeland is established. "We will take the Pakistani people into confidence before taking a decision to recognize Israel," he added.(Posted @ 18:16 PST)


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Pakistan, India to begin third round of composite dialogue by end-year ISLAMABAD, Sep 1 (APP): Foreign Secretaries of Pakistan and India met Thursday to review the progress in the ongoing peace process as the two countries would begin the third round of talks under the composite dialogue by the end of 2005. Foreign Secretary Riaz Ahmed Khan told reporters after talks with his Indian counterpart Shayam Saran, it was a preparatory meeting before the review of the composite dialogue process by their foreign ministers, who are scheduled to meet from October 3-5. A joint statement on the meeting is to be issued on Friday.The 8-point agenda included Jammu and Kashmir, Peace and Security, Siachen, Sir Creek, economic and cultural exchanges, terrorism and drug trafficking. The two sides agreed to sign a Memorandum of Understanding (MoU) agreed earlier on the prior notification of missile testing by the two countries. Foreign Ministers Khurshid Kasuri and Natwar Singh will ink the agreement when they meet in October.The decision to revive Pakistan-India Commission was taken during the meeting between President Pervez Musharraf and Prime Minister Manmohan Singh in New Delhi on April 18. Officials of the two sides would now meet to discuss format and the mandate of the Commission which last met in 1989.The Foreign Secretary said that the third round of talks under the composite dialogue process would hopefully start from the end of the current year. Reminding that the issue of Kashmir was discussed within the framework of the composite dialogue of December, 200 at the foreign-secretary level, Khan said the Kashmir issue had been discussed at all levels and would be on the top of the talks between President Musharraf and Prime Minister Singh.(Posted @ 19:14 PST)


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Al-Qaeda claims London attacks in video message: Al-Jazeera DUBAI, Sept 1 (AFP) The Qatar-based Arab television station Al-Jazeera on Thursday aired snippets of a videotape attributed to Al-Qaeda in which the network is said to claim responsibility for the July 7 London bombings. Al-Jazeera showed footage of one of the bombers, Mohammad Sidique, and of Al-Qaeda number two Ayman al-Zawahiri, who it said described the rush-hour bombings on underground trains and a bus as a "slap" on the face of British Prime Minister Tony Blair.(Posted @ 23:48 PST)


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Britain describes Kasuri's meeting with Israeli FM as positive step LONDON Sep 1(APP) Britain on Thursday described the first ever meeting of Foreign Minister Khurshid Mehmood Kasuri with his Israeli counterpart Silvan Shalom as a "positive step". When approached for comments on the meeting between the two Foreign Ministers in Istanbul today the British Foreign and Commonwealth Office Spokesman told APP "We are aware of today's meeting and we think that this is a positive step."(Posted @ 23:42 PST)


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Kashmir core issue between Pakistan and India: PM ISLAMABAD, Sept 1 (APP): Prime Minister Shaukat Aziz Thursday said that Kashmir is the core issue between Pakistan and India and progress on other issues will move in tandem with progress on Kashmir issue. He was talking to Shyam Saran, India Foreign Secretary who called on him at the Prime Minister Secretariat. The Prime Minister said that the peace process between the two countries is irreversible. The composite dialogue process is the key and we must maintain its integrity', said the Prime Minister. He said Pakistan is committed to peace and wants multifaceted relationship. The Prime Minister said the two countries have to recognize problems and resolve all outstanding issues including the core issue of Kashmir.(Posted @ 23:36 PST)


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Egypt, Israel sign Gaza border deployment deal CAIRO, Sept 1 (AFP) - Egypt and Israel signed an historic deal Thursday for the deployment of Egyptian border guards to patrol Gaza's southern border, a major step towards Israel's complete withdrawal from the Palestinian territory. The deal will see 750 lightly armed officers fan out to stop weapons being smuggled into the Gaza Strip, when Israeli soldiers are recalled from the territory after a 38-year occupation. There was no official confirmation of when Egyptian troops would start their deployment along the so-called Philadelphi corridor, 14-kilometre (eight-mile) buffer zone created by the Israeli army on the Palestinian side of the Gaza Strip's southern border.But Israel's top-selling Yediot Aharonot said the deployment would kick off on Sunday.(Posted @ 21:40 PST)


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Iraqis bury dead of stampede tragedy NAJAF, Iraq, Sept 1 (Reuters) - Thousands of mourners poured into the holy city of Najaf on Thursday to bury some of the victims of the stampede in Baghdad in hundreds of graves dug at a cemetery in Najaf. The road to Najaf was choked with coffins loaded onto minivans and coaches. Security was stepped up, with dozens of police and army checkpoints on the road. At least 965 people have been confirmed dead but the final death toll, one senior official said, was likely to be more than 1,000, once all the bodies in hospitals, makeshift morgues and family homes across the city were counted. Prime Minister Ibrahim Jaafari on Thursday ordered the payment of 3 million dinars (around $2,000) to the family of each victim of the disaster.(Posted @ 21:10 PST)


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Looters rampage in New Orleans, survivors flee NEW ORLEANS, Sept 1 (Reuters) - Looters rampaged through flooded streets and survivors scrambled to get out on Thursday as shell-shocked officials tried to regain control of the historic jazz city reduced to ruin by Hurricane Katrina. An operation to bus more than 20,000 refugees to the Houston Astrodome was suspended temporarily when shots were fired in New Orleans at helicopters being used in the evacuation, a local government spokeswoman in Houston said. That prompted New Orleans Mayor Ray Nagin to order police to drop rescue operations to first fight the crime that gripped the besieged city. Gunshots repeatedly rang out and fires flared as looters broke into stores, houses, hospitals and office buildings -- some in search of food, others looking for anything of value. They broke windows, tore down security gates and knocked down doors, then hauled away what they could carry or cart. Similar scenes were witnessed in Mississippi where looters freely ransacked stores in Biloxi and Gulfport, both shattered by the storm. Amid the gloom was good news that floodwaters had started receding in New Orleans, which is mostly below sea level and was inundated by water from Lake Pontchartrain after levees broke. President George W. Bush flew over stricken areas on his return to Washington from his Texas vacation and would undertake a detailed air and land tour of the area on Friday.(Posted @ 21:02 PST)


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Thousands dead in Louisiana - senator BATON ROUGE, La., Sept 1 (Reuters) - U.S. Sen. Mary Landrieu said on Thursday thousands had died after Hurricane Katrina devastated New Orleans and the Gulf Coast. "We understand there are thousands of dead people," the Democratic senator from Louisiana said at a news conference in Baton Rouge.(Posted @ 20:46 PST)


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Abu Dhabi Group signs one billion dollar investment deal with Bangladesh DHAKA, Sept 1 (AFP) - The UAE's Abu Dhabi Group Thursday signed a one billion dollar deal with Bangladesh to invest in the country's fast growing mobile telecommunications, pharmaceuticals and hotel sectors, officials said. More than half the amount will be invested in GSM mobile telecom, while 125 million to 150 million dollars will go towards a five-star hotel in the capital with rest invested in pharmaceuticals and infrastructure, the group's chief executive Bashir Ahmad Tahir said.(Posted @ 20:38 PST)


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Palestinians 'worried' about Israel-Pakistan meeting GAZA CITY, Sept 1 (AFP) - The Palestinian Authority on Thursday said it was "worried" about Pakistan's first high-level diplomatic contact with Israel as the Jewish state continues to occupy east Jerusalem and the West Bank. "It is not good to give Israel gifts before it really implements the peace process, not only in Gaza, but in Gaza, the West Bank and Jerusalem," deputy prime minister Nabil Shaath told reporters. "The right time for this relationship with Israel is after Israel withdraws from... all land occupied in 1967 and solves the refugee issue," Shaath said, adding that he thought Palestinian leader Mahmud Abbas was of the same opinion. "We condemn any relationship between an Islamic state and the Israelis and we ask Pakistan to go back on this agreement, especially as the Palestinian people have not yet been given their rights," said Hassan Yussef, the West Bank leader of Hamas.(Posted @ 20:38 PST)


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Balochistan to become economic hub of Pakistan: President Musharraf QUETTA, Sep.01 (PPI): President Pervez Musharraf addressing prominent notables, tribal heads, lawyers, political and Social figures in Quetta on Thursday said that work on mega projects in Balochistan was in progress and steps for Balochistan's linkages with Central Asian States would pave the way for economic prosperity of the country particularly the people of Balochistan.(Posted @ 20:10 PST)


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Indian intellectuals ask Delhi to strip Indian army of special powers in occupied Kashmir NEW DELHI Sep 1 (APP): An Indian intellectuals conference has called for withdrawal of special powers from the Indian army and paramilitary forces deployed in occupied Kashmir with an internationally acclaimed writer stating that New Delhi's atrocities in Jammu and Kashmir had surpassed records of worst dictators. Arundhati Roy, a Bookner Prize winner author, recounted her recent visit to occupied Kashmir, saying everyday, ordinary Kashmiris are being subjected to humiliation, and "we say peace is returning to the Valley. Criticizing New Delhi's policies, Roy said the Indian occupation in Jammu and Kashmir "has surpassed the excesses of Pinochet in Chile." The meeting noted that Indian media has failed to highlight the plight of the ordinary Kashmiris who have been subjected to Indian repression in the name of freedom and peace. "Indian media is suffering from schizophrenia as its reports portray zero reflection about the reality in Jammu and Kashmir. Indian media is busy painting a rosy picture of normalcy, which is absolutely false," remarked Roy. A report in The Hindu also quoted her as saying that "Indians have no right to talk about whatever is happening in Palestine and Iraq unless we discuss and highlight the atrocities being committed in the Valley."(Posted @ 20:05 PST)


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President vows to remove sense of deprivation from Balochistan QUETTA Sep 1 (APP) President General Pervez Musharraf Thursday said that the government has succeeded in reducing the sense of deprivation in Balochistan to a great extent, and vowed to further reduce it in the coming years Speaking at the 40th passing out parade of Frontier Corps recruits here he reviewed and listed the mega ongoing projects in Balochistan and promised to remove backwardness of the province may it cost billions of rupees. The President, however, urged the Balochistan people to ensure peace in the province saying that development without peace is impossible. President Musharraf extended his profound felicitations to new recruits, their parents and instructors and said he was very pleased to know that most of these recruits are Baloch. There are 423 Baloch officers and 10,000 Baloch jawans in Pakistan Army. Baloch youth also constitute 8% of the total numerical strength of Frontier Corps, he said, and assured that this ratio would further be increased to 20% by next year. Around 10,000 people from Balochistan will be recruited in FC in the coming years, he declared.(Posted @ 19:58 PST)


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Ancient Indian treasure found in billionaire's home KOLKATA, India, Sept 1 (Reuters) - A treasure trove containing a huge number of gold artefacts, some dating back to the 3rd century BC, has been discovered at the home of one of India's leading industrial families, officials said on Thursday. The Birla family has been squabbling over the fortune of Priyamvada Birla who died last year leaving assets worth about 50 billion rupees ($1.1 billion) to an accountant who is not a part of the family.The treasure was found on Tuesday night inside a secret chamber behind a wooden panel at the Kolkata home of Priyamvada who supposedly bequeathed her entire fortune to her accountant, R.S. Lodha, in a will being challenged by the Birlas. "We found 200-300 gold coins of the Maurya and Gupta dynasties and the Mughal period, a gold flower vase, a gold tea set and many gold artefacts," said Ahin Chowdhury, a judicial officer appointed by a city court hearing a case between the Birlas and Lodha. The Mauryas ruled Inda in the 3rd century BC while the Guptas ruled in the 6th century AD.(Posted @ 18:55 PST)


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Casualties in Iraq, Sept 1 BAGHDAD, Sept 1 (Reuters) - Two policemen were killed and two wounded when gunmen ambushed their patrol on its way back to Baquba from Khan Bani Sa'ad, a police source said. Two mortar rounds fell on a service station in the city of Diwaniya, 180 km south of Baghdad, but there were no casualties.One U.S. humvee was struck by a roadside bomb at about 8:50 a.m. (0450 GMT) west of Baiji, 180 km north of Baghdad. A U.S. military statement said "one U.S. soldier was wounded(Posted @ 18:42 PST)


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At least 140 die of encephalitis in Nepal KATHMANDU, Sept 1 (AFP) - At least 140 people have died of encephalitis and another 860 have been laid low by the mosquito-borne disease in Nepal's southwestern tropical lowland region in the last few weeks, a health ministry official said Thursday. Most of the deaths occurred in the Nepalgunj, Banke and Kailali districts, he said .(Posted @ 18:35 PST)


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British opposition hopeful lashes out at Blair's Iraq policy LONDON, Sept 1 (AFP) - A veteran politician vying to lead Britain's main opposition Conservative Party accused Prime Minister Tony Blair on Thursday of making the country a bigger terrorist target by helping to invade Iraq. Kenneth Clarke made the aggressive comments in his first public speech since announcing on Wednesday he would enter a race for the Tory leadership. Another likely contender in the hotly-contested battle, education spokesman David Cameron, is due to deliver a rival speech later in the day. Clarke, 65, told members of the Foreign Press Association in London: "The disastrous decision to invade Iraq has made Britain a more dangerous place." He said the threat of Islamic terrorism had been around for a number of years, but Blair's close relationship with US President George W. Bush and his high-profile role in the US-led Iraq war had heightened the risk. Clarke -- who as the last Tory finance minister laid the foundations for Britain's ongoing prosperity -- bucked his party line on Iraq, refusing to join other Tories in supporting Blair's decision to invade. He acknowledged, however, "What has been done, has been done... What matters today is what we do now."(Posted @ 18:35 PST)


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Tear gas fired as Kashmiri Shiites mourn Iraq deaths, force shutdowns SRINAGAR, Sept 1 (AFP) - Police fired tear gas as hundreds of Shiite Muslims poured on to the streets of Srinagar Thursday, forcing businesses to close out of respect for those who died in a stampede in Iraq the other day. Police baton-charged to disperse protestors in several parts of the city.Angry people raised anti-American and pro-Islamic slogans and retaliated by hurling stones and bricks at the riot police and also set up road blocks by burning abandoned tyres.(Posted @ 18:26 PST)


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Pakistani hardliners call nationwide protest over Israel talks ISLAMABAD, Sept 1 (AFP) - Pakistani fundamentalists vehemently condemned Islamabad's first high-level diplomatic contact with Israel on Thursday and said they would launch a nationwide protests. A powerful alliance of six Islamic parties which leads the opposition in parliament said protests would be held throughout the country after Friday prayers to express anger at the government's "anti-Islamic move". Pakistani Foreign Minister Khurshid Kasuri held a surprise meeting with his Israeli counterpart Silvan Shalom in Istanbul Thursday and the Israeli official said the meeting heralded a new era in relations. "We strongly condemn the meeting and we have called for a day of protest throughout the country on Friday to register our anger and protest against this move," the alliance's spokesman Shahid Shamsi told AFP.Pakistani Foreign Secretary Riaz Khan told reporters in Islamabad that the meeting between Kasuri and Shalom would provide an impetus to the Middle East peace process. "This contact, the first at this level, is essentially a gesture to Israel to underscore the importance that we attach to the end of Israeli occupation of Gaza and to the Middle East peace process," a foreign ministry statement said.(Posted @ 18:10 PST)


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Israel in Pakistan talks on back of Gaza pullout JERUSALEM, Sept 1 (AFP) - Israel was reaping the diplomatic dividends Thursday of its pullout from the Gaza Strip within the Muslim world, forging unprecedented contacts with Pakistan and lining up a summit with Jordan. Israeli Foreign Minister Silvan Shalom held a first ever public meeting with his Pakistani counterpart Khurshid Kasuri in Turkey, as Prime Minister Ariel Sharon looked to host talks with Jordan's King Abdullah II. "I have said to the representatives of numerous Arab and Islamic states that our withdrawal from Gaza would be the right time for the establishment of diplomatic relations," Shalom told public radio from Istanbul. "This meeting is extremely significant and we hope that it will be the prelude to relations at the same level we have with India," he added. "We hope that there will soon be visits by delegations from my ministry to Pakistan which will be swiftly followed by the normalisation of relations between our two countries." Kasuri linked the decision to open talks to the pullout of settlers from Gaza which was completed 10 days ago, the first time Israel has ever evacuated its citizens from parts of the occupied Palestinian territories. "Pakistan gives great importance to the developments in Israel and the Gaza Strip," Kasuri told reporters after the talks with Shalom."Pakistan has therefore decided to engage with Israel," he said, without elaborating. Shalom predicted more contacts with his Pakistani counterpart at this month's annual UN General Assembly meeting.Although Jordan denied reports that King Abdullah had scheduled a visit with Sharon in Jerusalem next week, a source close to the Israeli premier indicated that a such a meeting was on the cards. "We must wait for an official announcement in good time," he told AFP. The Jordanian palace denied the prospective summit, with one senior official saying "no visit by King Abdullah II to Israel next week is included in His Majesty's schedule."(Posted @ 18:04 PST)


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Pakistan air force to hold big war games RAWALPINDI, Pakistan, Sept 1 (AFP) - Pakistan's air force said Thursday it would launch a month of war games at the weekend, its first for ten years. The entire fleet, including US-made F-16s, French Mirage fighter aircraft and Chinese-built jets, will take part in the exercise, said PAF Deputy Chief of Operations, Shahzad Chaudhry. "This is closest to war you can get in peacetime," Che said. "It is a huge and major exercise, all planes, all radars and all ground assets are being mobilised during the games" and the aircraft will fly 8,200 operational sorties, the highest ever. Prime Minister Shaukat Aziz will witness the games at the initial stage while President Pervez Musharraf will inspect the operations in the concluding phase.(Posted @ 17:26 PST)


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Typhoon Talim pounds Taiwan, leaving three dead, 59 injured TAIPEI, Sept 1 (AFP) - Three people were killed and 59 injured after Typhoon Talim pounded Taiwan Thursday with strong winds and heavy rains, forcing offices, schools and financial markets to close. The injured were from the worst-hit northern and central parts of the island. Winds uprooted billboards and trees across the island, all domestic flights were cancelled and many trains and international air services were delayed.(Posted @ 17:22 PST)


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APHC Kashmiri leaders meet ahead of talks with Indian premier SRINAGAR, India, Sept 1 (AFP) Leaders of the All Parties Hurriyat Conference (APHC) said on Thursday they would use a long-sought meeting with Indian Prime Minister Manmohan Singh to press for a resolution of the Kashmir issue. The Kashmiri leaders were meeting in Srinagar to set an agenda for the September 5 meeting, the first between APHC and Singh who took power in May 2004. "We will be talking for a resolution of the Kashmir issue," Mirwaiz Umar Farooq, the head of APHC, said.(Posted @ 14:10 PST)


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Sri Lanka rejects Tiger offer of talks venue COLOMBO, Sept 1 (AFP) Sri Lanka's government Thursday rejected a Tamil Tiger offer to hold truce review talks inside rebel-held territory as squabbling over the choice of venue threatened to hold up the first high-level encounter between the two sides in 30 months.(Posted @ 14:05 PST)


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Taliban behead cleric linked to vote KABUL, Sept 1 (Reuters) Taliban insurgents beheaded a cleric, Mullah Amir Mohammad, saying he was a candidate in Sept. 18 elections, but a spokesperson for the governor of Helmand province said on Thursday the dead man was not a candidate but he had been helping one. A Taliban spokesman confirmed the murder.(Posted @ 14:05 PST)


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U.S. adds textile curbs after China talks fail BEIJING, Sept 1 (Reuters) The United States slapped extra curbs on imports of Chinese textiles on Thursday, hours after talks on finding a formula to deal with China's surging clothing shipments ended in failure in Beijing. The Commerce Department in Washington said it would continue talks with China but in the meantime was acting to restrict imports of Chinese-made synthetic filament fabric used to make high-end clothing. The failure of the talks risks casting a shadow over Chinese President Hu Jintao's visit to the United States next week.(Posted @ 12:50 PST)


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British engineer kidnapped in western Afghanistan KABUL, Sept 1 (Reuters) A British engineer was kidnapped after gunmen attacked a convoy in western Afghanistan and killed three police escorts, the Interior Ministry said on Thursday. Taliban guerrillas said they carried out the Wednesday night attack in the western province of Farah and were holding the Briton, but an Interior Ministry spokesman said a criminal gang was responsible. No other details were available.(Posted @ 11:35 PST)


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Indian troops kill nine militants along LoC SRINAGAR, Sept 1 (AFP) Indian troops have gunned down nine militants along the LoC, the Indian army said Thursday. The army alleged that the militants were killed after they had infiltrated into occupied Kashmir after crossing the LoC.(Posted @ 09:50 PST)


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Karachi Stocks down 27.88 points: KARACHI, September 1: The KSE-100 index was at 7768.98 , down 27.88 points from Wednesday's close. (Bureau Report) (Updated @ 14:40 PST)

Forex update: KARACHI, September 1: The Pakistani Rupee was traded at Rs 60.1 to the US Dollar in the open market. (Bureau Report) (Updated @ 14:40 PST)

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