"I decapitated with my blessed right hand the head of the American Jew, Daniel Pearl, in the city of Karachi, Pakistan," Mohammed told a military panel, according to a Pentagon transcript released Thursday. "For those who would like to confirm, there are pictures of me on the Internet holding his head."

In 2002, an anti-terrorism court in Karachi sentenced Ahmed Omar Saeed Sheikh, a British-born militant, to death and gave three other men life in prison for involvement in Pearl's killing.

Rai Bashir a lawyer for Sheikh and the other three men said on Sunday that he will study the Pentagon documents on Mohammed's claim and file his confession as evidence to prove Sheikh's innocence.

The Israeli cabinet voted Sunday to limit talks even with moderate Palestinian officials to shared security and humanitarian concerns, ruling out a formal peace process until the new Palestinian government recognizes Israel and renounces violence.
 
In officially rejecting the Palestinian unity government that was sworn in over the weekend, the cabinet also stated that "Israel expects the international community to maintain the policy it has taken over the past year of isolating the Palestinian government."

The vote was unanimous, with two cabinet members from the Labor Party, including the only Arab minister, abstaining.

"This is a government that does not accept the conditions of the international community," Israeli Prime Minister Ehud Olmert said.

The new Palestinian cabinet includes rival political parties and has pledged to respect previous agreements that recognize Israel, unlike the previous cabinet in office since the radical Islamic movement Hamas took control of the government nearly a year ago.

But it continues to be led by Prime Minister Ismail Haniyeh of Hamas, and its political program falls short of renouncing violence and explicitly recognizing Israel, the conditions for resumption of foreign aid.

Most international donors cut off economic aid after Palestinian voters chose Hamas to run the Palestinian Authority in January 2006.

Unemployment and poverty have increased in the territories since then, and about 130 Palestinians have been killed over the past year in a violent power struggle between Hamas and the rival Fatah movement.

A German court has ruled that it is legal to sell anti-Nazi T-shirts that use the swastika.

A lower court had ruled that Jurgen Kamm, who runs a business called "Nix Gut" or "Nothing Good," was in violation of a law against displaying the swastika, giving the Hitler salute or wearing Nazi uniforms. He was fined almost $5,000.

Kamm, who describes himself as left-wing, sells T-shirts, badges and bumper stickers that bear a swastika with a red slash through it or show someone putting a swastika in a garbage can.

The Federal Court of Justice in Karlsruhe found that his wares "clearly and unambiguously" carry an anti-Nazi message, Deutsche Welle reported.

Hugo Chavez has called President Bush a devil, a donkey and a drunkard. But on Wednesday the Venezuelan leader said his comments were "nothing personal."

Chavez, who had stepped up his verbal assault during Bush's Latin American tour this week, suggested that the two adversaries might eventually overcome their differences and even play a game of dominos or baseball together.

"One day, if maybe George Bush and I survive all of this, we will reach old age, and it would be good to play a game of dominos, street baseball," Chavez said on his weekday radio program.

But he said his comments about the American leader were "nothing personal" and that his opposition to Bush was due to "deep ethical, political, historic and geopolitical" reasons.

Chavez has fiercely opposed U.S.-backed free trade policies and criticized the Bush administration's handling of Iraq and other foreign policy decisions.

Chavez said Bush was part of a long line of elitist U.S. administrations that have become accustomed to abusing the rest of the world, acting unilaterally and violating human rights.

He also taunted the U.S. leader for skirting questions about Chavez during his Latin American tour in the past week, comparing him to a matador avoiding the bull with his cape.

"The president of the United States takes out his cape as always, Ole!, because he doesn't want to respond" to pointed issues raised by the Venezuelan leader, Chavez said.

Bush on Wednesday completed a tour of Mexico, Brazil, Uruguay, Colombia and Guatemala.

Chavez went on something of a shadow tour of Bush's trip over the same period, visiting several regional nations including Argentina, where he led thousands in an anti-bush rally.

Five Chinese citizens seeking compensation from Japan for injuries from poison gas left behind in China by Japanese forces during World War Two lost a court battle on Tuesday.
The five Chinese had sought a total of 80 million yen (US$680,000) from the Japanese government for injuries and health problems they suffered between 1950 and 1987.

But on Tuesday, the Tokyo High Court upheld a lower court ruling in May 2003 that had dismissed their damages suit, one of a range of war-related issues that have at times strained relations between the two Asian giants.

It was not immediately clear whether the Chinese plaintiffs would appeal to the Supreme Court.

Beijing and Tokyo have been grappling with a number of disputes over everything from energy resources and territorial boundaries to historical issues stemming from Japan's invasion and occupation of parts of China from 1931 to 1945.

But ties have warmed since Japanese Prime Minister Shinzo Abe took office last September and made his first trip abroad an ice-breaking visit to China. Chinese Premier Wen Jiabao is expected to make a reciprocal visit to Tokyo in April.

In a separate but similar court battle, the Tokyo District Court ordered the government in September 2003 to pay a total of about 190 million yen in compensation to 13 Chinese, including bereaved relatives of victims.

The Japanese government filed an appeal several days later.

The case arose from poison gas incidents in 1974 and 1982 and a shell explosion in 1995, all involving discarded Japanese munitions in Heilongjiang province in northeastern China.

China says Japanese forces left behind about 2 million chemical weapon shells in China, and more than 2,000 people have been harmed by them.

Japanese studies have placed the number of such shells at about 700,000.

Japan had pledged to clean up the weapons by this year, but it later sought an extension, saying the deadline was impossible to meet. China has complained about the slow pace of disposals.

On Aug. 4, 2003, one man died and more than 40 people were injured after five World War Two-era metal barrels containing mustard gas were unearthed at a construction site in the city of Qiqihaer, Heilongjiang.

Japan apologized and paid a total of 300 million yen in compensation to the Chinese government for the Qiqihaer incident.

China plans to gradually lessen the number of executions it carries out while still keeping the death penalty, according to a statement released Sunday by China's Supreme People's Court, Ministry of Justice, Ministry of Public Security, and China's lead prosecutor. The statement indicated that China cannot entirely abolish the death penalty, but noted that if the possibility exists that a convicted individual did not commit the crime, then that person should not be executed. The legal groups also condemned confessions through torture and said police must instead gather evidence according to the law.

China, which executes more prisoners than any other country in the world, revised its death penalty laws last year, mandating the Supreme People's Court to review any death sentences handed down. The country has been under pressure to take a closer look at its policies after China's deputy chief prosecutor revealed that almost every wrongful conviction in recent years has been the result of torture and intensive interrogation techniques.