Constitutional Loya Jirga assembled 13 December in Kabul amid security fears. Intense debate followed on presidential/parliamentary power balance and regional-ethnic representation – final vote on draft constitution repeatedly delayed, now not until 1 January at earliest. President Karzai, largely supported by Pashtuns, insisting delegates approve draft giving extensive powers to presidency, but opposed by Northern Alliance representatives. Suicide bombing in Kabul 29 December killed 5 Afghan intelligence officers; Taliban claimed responsibility and threatened further attacks. Afghan UN worker killed, several injured in Farah province 4 December; 15 children killed in two separate U.S. airstrikes; Kandahar shopping area blast 6 December injured 18. NGOs reducing work and personnel as foreign workers continue to be targeted: 2 Indian, 2 Turkish, and 1 Afghan worker on Kandahar-Kabul road kidnapped. Safety issues delaying voter registration and education efforts. Disarmament and reintegration pilot scheme achieved first disarming of defence minister’s militia and control over some heavy weapons near Kabul, as well as first regional disarming of 1000 former combatants in Kunduz and Gardez.

Government issued wanted list of separatist Muslim individuals and groups, accusing them of using terror in pursuit of independent state in Xinjiang. Pakistan said Hasan Mahsum, leader of East Turkestan Islamic Movement (ETIM) and one of China’s most wanted, killed in October raid on militant hideout near Afghan border.

Continuing violence in northeast spread into neighbouring Bhutan where military claimed to have wiped out 30 anti-Indian insurgent camps. 150 deaths of mainly ULFA and NDFB Bodoland separatists reported. ULFA separatists blamed for previous month’s violence in Assam: ULFA founder captured in Bhutan, but military chief vowed to fight on. Kuki and Karbi tribal clashes 3 December claimed another 5 lives. Bodoland Territorial Council created allowing Bodo self-rule in parts of state. On 6 December, eleventh anniversary of Ayodhya mosque razing, Hindu-Muslim clashes in Hyderabad left 6 dead. PM Vajpayee’s BJP party made significant electoral gains, unseating Congress-led governments in 3 of 4 states: Madhya Pradesh, Rajasthan and Chattisgarh.

In major policy shift, Pakistani President Pervez Musharraf offered to drop longstanding demand for plebiscite, conditional on progress in talks with India on Kashmir. Foreign Minister Mahmood Ali Kasuri and Information Minister Sheikh Rasheed noted Pakistan continues to support plebiscite but would consider other options. Ceasefire along Line of Control (LOC) holding as normalisation steps continue. Both sides agreed to resume overflights, air and rail links from 1 January. India accelerating work on security fence along LOC, criticised by Musharraf. Ceasefire not supported by Kashmiri separatist groups, though violence reportedly has decreased: death toll since 26 November truce over 150. Indian PM Vajpayee confirmed attendance at January South Asian Association for Regional Cooperation (SAARC) summit in Islamabad; not yet known whether bilateral negotiations on Kashmir will take place.

Senior Islamic clerics ruled suicide bombings forbidden in Indonesia by Islam 16 December. Four of 6 suspected Indonesian Islamic militants, arrested in Pakistan and deported in December, detained under Indonesia's anti-terror laws - included Rusman "Gun Gun" Gunawan, brother of Hambali. More alleged rebels killed in Aceh but no independent verification of military statistics on numbers killed or detained since martial law declared in May 2003. Bomb blast at open air concert in Aceh New Year’s eve killed at least 9 concertgoers – perpetrator unknown. An Indonesian journalist held hostage by Aceh rebels since July 2003 killed in shootout between rebels and army 29 December. Red Cross and some U.N. agencies allowed back to Aceh but international NGOs effectively remained barred. Unrest in Papua following appointment of new police chief indicted by the UN’s East Timor Serious Crimes Unit for human rights abuses in East Timor. Sporadic violence continued in Poso.

Negotiations for mid-December six-way talks stalled, but Pyongyang said willing to take part in new talks in early 2004. N. Korea and U.S. failed to agree on talk objectives. Pyongyang insisting complete, irreversible, verifiable dismantling of nuclear weapons not possible without economic aid and security assurances. Economic and energy incentives not included in U.S. proposal. N. Korea accused Washington of delaying tactics. President Bush rejected North Korean 9 December offer to ‘freeze’ nuclear program; Pyongyang rejected U.S. 15 December counter-proposal.

‘Informal ceasefire’ agreed between military government and ethnic minority rebels, Karen National Union (KNU), 8 December. 12 nation talks held 15 December in Bangkok to explain government road map to democracy. Myanmar’s ruling council announced intention to hold constitutional conference with all opposition parties in 2004. UN welcomed move but, along with U.S., EU and Japan, continues to view road map as non-participatory, non-transparent and lacking timeline – all demand release of Aung San Suu Kyi and substantive talks with opposition. Suu Kyi refuses liberty until National League for Democracy (NLD) colleagues arrested in connection with 30 May violence released; 14 of 35 remain incarcerated. Nine linked to NLD sentenced to death for treason 3 December.

Violence continues unabated. Conflict spread into Terai lowland belt, where Maoist group Madhisey Liberation Front imposed 24-hour strike. U.S. Assistant Sec. State Christina Rocca met with government officials, raised issue of human rights abuses. Army, meanwhile, admitted instances of excessive force, promising to punish offenders. Government announced disarmament and reintegration plans for Maoist rebels, including amnesty, cash rewards for arms and munitions, and shelter and training if rebels surrender before 12 February; government has in past tried similar projects to diminish rebel ranks. Dozens injured in protests calling for all- party government and removal of royalist PM.

Two suicide bombers attacked motorcade of President Pervez Musharraf 25 December in second unsuccessful assassination attempt in under 2 weeks. Pakistani intelligence blamed al Qaeda; security under scrutiny. U.S. security personnel targeted in 7 December rocket attack in Northwest Frontier Province. Commonwealth countries said Pakistan to remain suspended until it undertakes democratic and judicial reforms. Deal between Islamist coalition MMA and Musharraf on Legal Framework Order (LFO), incorporated into constitution as seventeenth amendment, formalises Musharraf’s special powers to sack PM and dissolve parliament.

Arrangements finalised 11 December at bilateral summit for Australia to deploy around 300 police, judges and administrators to address growing lawlessness, as condition of U.S.$220 million Australian aid program. Draft constitution, proposed by Bougainville leaders to resolve final status of semi-autonomous province, being considered by Bipartisan National Committee. Third stage of weapons destruction by Bougainville rebels in progress under auspices of UN-chaired Peace Process Consultative Committee; UN political office to be replaced by smaller observer mission mandated until June 2004 to oversee constitutional process and weapons disposal.