Foreign Minister Ahmed Maher assaulted by group of Palestinians while praying at Al Aqsa Mosque in Jerusalem. Attack apparently triggered by anger at Maher’s earlier meeting with Israeli PM Ariel Sharon on Roadmap. Egyptian government vowed to continue recent mediation efforts between Israel and Palestinians; Egyptian President Hosni Mubarak also pushing to improve relations between Syria and U.S.

Earthquake devastated ancient city of Bam, killing at least 28,000 and perhaps many more. Early international response included U.S. government planes landing in Iran for first time in over 2 decades, carry relief. Tehran signed additional protocol of Nuclear Non-proliferation Treaty allowing IAEA to conduct more intrusive inspections of nuclear sites. Evidence discovered in investigation of nuclear program points to Pakistan as source of advanced technology. Negotiations reportedly ongoing with U.S. over handover – or return to home countries – of detained al Qaeda suspects. U.S. meanwhile deciding whether to expel anti- Iranian Mujahideen-e Khalq Organization (MKO) from Iraq; Iraqi Governing Council decreed MKO must leave by end of December, though to where unclear. Controversial registration of candidates for February parliamentary elections ongoing; candidates must be vetted by conservative Guardians Council.

U.S. troops captured hiding Saddam Hussein 13 December, setting off both clashes and celebrations in Iraqi streets. Impact of capture on anti-Coalition insurgency still uncertain; at present, attacks continue unabated, with 22 Coalition soldiers killed by hostile fire since capture. Day after capture, car bomb exploded in town of Khaldiya, killing 17 policemen. Attacks in Karbala 27 December killed 12, including 4 Bulgarian soldiers, 2 Thai engineers. U.S. followed up capture with large-scale arrests, claiming better intelligence, including from documents found with Hussein, helping piece together structure of resistance. U.S. says no decision made on whether new Iraqi war crimes court will try Hussein. Anger at U.S. move to exclude countries who did not send troops from bidding on reconstruction contracts; France, Germany, and Russia nonetheless agreed to major write-off of Iraqi debt, as did Britain, Japan, and others. UN Secretary-General Kofi Annan called 15 January meeting with Governing Council and U.S. to seek clarity about role they thought UN might play; said in 10 December report that security situation made quick return unlikely. 261 Coalition soldiers, including 214 Americans, killed by hostile fire since 1 May, declared end of combat operations

Israeli PM Ariel Sharon said in major speech that country will sever links with Palestinians if no progress made toward peace in coming months, suggesting political shift. Bush Administration responded with warning against taking unilateral steps which harm Roadmap. Palestinian leaders failed to agree to full ceasefire with Israel in Cairo talks; failure seen as setback for Palestinian PM Ahmed Qurei. UN General Assembly asked International Court of Justice in The Hague for opinion on controversial security fence through West Bank; Court to hold hearings in February. “Geneva Initiative”, offering full blueprint for peace settlement, launched 1 December with widespread support from world leaders. Suicide bombing in Tel Aviv 25 December first in over 2 months; attack killed 4, shortly after Israeli helicopter strike in Gaza killed 6, including militant leader.

Three Iraqi nationals charged with plotting to attack U.S. and Israeli targets in Jordan.

Israeli troops shot and killed 2 Lebanese men carrying hunting rifles along border with Israel 9 December. Lebanese security forces arrested 2 citizens suspected of planning to bomb U.S. embassy in Beirut.

In surprise announcement, Libyan leader Muammar Qaddafi said country would end pursuit of WMD and allow unconditional inspections. Declaration followed months of secret negotiations with U.S. and Britain and visits by American and British inspectors to Libyan sites. Nuclear program reportedly more developed than previously thought; includes advanced uranium enrichment capabilities. Move paves way for possible lifting of U.S. sanctions, in place for almost two decades.

Opposition leader Mohamed Haidalla convicted of treason charges, but given 5 year suspended sentence and fine, and released from jail.

On visit to Rabat, U.S. Sec. State Powell praised Morocco for anti-terror cooperation but voiced concerns over policies adopted at expense of human rights.

U.S. issued terror alerts and reduced diplomatic staff, saying it continued to receive indications of planned attacks against Western targets.