AUC paramilitaries issued 12 August communiqué stating intention to demobilise several thousand fighters. Move followed President Alvaro Uribe’s ultimatum for groups fighting in Casanare department to demobilise. Clashes between Peasant Self-Defense Forces of Casanare paramilitaries (not involved in AUC/government talks) and government troops 28 August left at least 21 dead. Uribe offered to release 50 leftist FARC fighters in return for 60 hostages. FARC rejected terms of exchange offer but Bogota hopeful deal still possible. U.S. warned would enforce extradition warrants against imprisoned fighters if released. Ten coca farmers murdered by FARC in Norte de Santander 11 August, as well as town mayor in Casanare province 28 August. Clash between ELN and government troops killed 5 soldiers 7 August in eastern Arauca province, where 2 unionists, accused of being leftist rebels, killed earlier in month.

Former paramilitary leader Louis-Jodel Chamblain and former police chief Jackson Joanis acquitted of murder of Antoine Izmery, pro-Aristide activist and businessman. Both face further charges. U.S., OAS and human rights groups expressed concern at verdict. Former members of disbanded Haitian army increasingly visible throughout country, demanding payment of salaries and pensions.

President Alejandro Toledo’s approval ratings doubled (to 15.2 %) after he opened personal bank accounts to public scrutiny, resumed gas extraction and signed agreement with Bolivia to allow Bolivian gas to be exported via port of Ilo, creating special commercial zone for Bolivian companies.

Relative stability returned to Venezuela as President Hugo Chavez won backing of 58% of voters in 15 August recall referendum. Opponents claimed fraud though international observers endorsed results. Only few isolated incidents of violence. Referendum put end to 2-year struggle of democratic opposition to recall President Chavez through article 72 of Venezuela’s constitution. Next presidential elections scheduled for late 2006; Chavez constitutionally entitled to run for re-election.

Editor of French-language daily Le Matin, Mohamed Benchicou, failed in appeal on 2-year prison sentence 11 August, amid media clampdown. Two members of Algerian security forces killed in Bouira, southeast of Algiers, 18 August. Further 7 soldiers killed in ambush east of Algiers 25 August by Group for Salafist Preaching and Combat (GSPC). 4 Islamic militants killed in Algerian army operations.

Israel reopened Rafah border-crossing between Gaza and Egypt 6 August, easing relations. Cairo continued talks with Palestinian groups on Gaza strip security after potential Israeli withdrawal, claiming agreement on deal with Hamas and Islamic Jihad; also destroyed 2 tunnels allegedly used to smuggle weapons from Egypt to Gaza. Ruling NDP party-inspired bill to ease restrictions on political party registration to be debated at second annual NDP conference September; viewed as insufficient by opposition.

Tehran said new IAEA report – expected in coming days – would clear up outstanding issues surrounding its nuclear program, while President Mohammad Khatami promised “guarantees” Iran would not seek nuclear weapons. But U.S., EU, and Israel remain concerned over program’s extent and purpose. Iran successfully test-fired upgraded Shahab-3 ballistic missile following recent Israeli test of Arrow II anti-missile system. Several people reportedly arrested in Iran for spying on nuclear program.

Top Shiite cleric Ayatollah Ali al-Sistani, returning to Iraq after surgery in London, brokered new ceasefire 27 August between U.S. forces and followers of radical cleric Moqtada al- Sadr. Previous ceasefire ended 5 August, with sides blaming each other for breakdown. Fierce fighting between Sadr’s Mahdi Army and U.S. forces raged throughout month in Najaf, with militants concentrating in and around holy shrine of Imam Ali and suffering heavy losses. In Baghdad, after intense debate and backroom deal-making, National Conference selected 100-member Consultative Assembly. Many delegates – particularly independents and representatives of small parties – complained selection process undemocratic. Assembly to oversee interim government until scheduled January 2005 elections. Security situation across Iraq remained poor, with attacks on oil pipelines in south, abduction of 2 French journalists, and killing of 12 Nepalese hostages. 698 Coalition soldiers, including 624 Americans, and thousands of Iraqis killed by hostile fire since declared end of combat operations on 1 May 2003.

Suicide bombers blew up 2 buses in Beersheba 31 August, killing 16, in worst attack in Israel since October 2003. Hamas claimed responsibility, saying attacks retaliation for killing of its leaders. Yasser Arafat survived challenge to his authority led by former security chief Muhammad Dahlan. In 19 August speech, Arafat acknowledged serious mistakes and pledged reform of Palestinian Authority. But inter-Palestinian violence continued in Gaza as factions struggle for power ahead of planned Israeli pullout in 2005. Gaza intelligence chief wounded and 2 bodyguards killed in attack by unknown gunmen west of Gaza city 25 August. In Israel, PM Ariel Sharon’s Likud Party voted to prevent Labor Party from joining governing coalition, in effect blocking Sharon’s Gaza pullout plan (Labor votes crucial for plan’s approval by cabinet). Sharon, meanwhile, adjusted Gaza plan, saying pullout would occur at one time rather than in 3 phases, and announced expansion of some existing West Bank settlements. Thousands of jailed Palestinians launched hunger strike 15 August to protest Israeli prison conditions.

Court charged 9 militants for alleged role in thwarted April plot to attack Jordanian and American targets in kingdom.