EU announced would resume aid in June, withheld since 2005 coup.

Junta government suggested ousted President Maaouiya Ould Taya may be able to return from exile, but said could not participate in elections.

7 men suspected of links with Algerian “Armed Islamic Group” being held without trial.

Junta chief Ely Ould Mohamed Vall announced pay raises for civil servants in bid to fight corruption; inaugurated independent electoral commission end November in preparation for March 2007 polls. AU urged Mauritania to allow refugee return from Mali and Senegal.

Military junta announced intention to reduce period of transition to constitutional rule by 5 months. Now to hold presidential elections in March 2007.

Military junta issued electoral calendar outlining transition to democracy over 2006-2007, held “democratic transformation” conference. 2 new parties formed - Movement for Direct Democracy and Renewed Democratic Party.

Colonel Vall, head of governing military council, announced general amnesty for political crimes 2 September, excluding 20 alleged to have worked with Algerian Salafi Group for Preaching and Combat. Refugees from 1989 interracial violence between Arab and black Africans (estimated at 20,000 in Senegal and 7,000 in Mali) called on government to support structured return.

Dramatically changed but, on balance, not deteriorated situation as unpopular President Taya overthrown in 3 August coup by 17-member Council for Justice and Democracy led by Colonel Vall, director of national security since 1987. U.S., UN and AU initially condemned coup, but subsequent criticism muted. AU referred to Vall as “president” during mission to Nouakchott; suspension from AU maintained. U.S. reassured by appointment as foreign minister of Ahmed Ould Sid'Ahmed, responsible for Mauritania’s 1999 diplomatic recognition of Israel. Vall said multi-party elections would be held following 2-year transition period; no junta members to stand. Several Islamist leaders, accused of links to Salafi terrorism by Taya, released from detention.

Country hosted anti-terrorism conference with representatives from Algeria, Mali, Niger and U.S.

Algeria-based Salafi Group for Preaching and Combat (GSPC) killed 15 soldiers in attack on garrison at Lemgheyti, near Algerian and Malian borders, 4 June. GSPC said attack revenge for imprisonment of Islamists in Mauritania. Ruling party organised Nouakchott demonstrations against attack. U.S.-launched Flintlock counter-terror exercises in context of wider Pan-Sahel Initiative.