1. Beirut bomb targeting US embassy vehicle wounds driver, kills Lebanese civilians in vehicle behind the embassy SUV. Hizballah and Iran suspected.

2. President Bush talks OPEC production levels, ‘smart bomb’ arms with Saudi Arabia.

3. French deal with UAE will see 500 French troops stationed in Gulf.

4. Another explosives shipment headed for Gaza disguised as international aid intercepted by Israelis.

5. ThaiCom satellite service halts broadcasting Hizballah’s al-Manar TV after criticism.

6. Nawaz Sharif slams current Pakistani alliance with US ahead of elections.

AFGHANISTAN
U.S. Criticizes UK Plan to Arm Afghan Militias - Military.com
Afghanistan Welcomes U.S. Troop ‘Mini-Surge’ - DefenseNews

FRANCE
France to station forces in UAE - BBC

ISRAEL
Israel, PA start ‘core issue talks’ - Jerusalem Post
Israel foils bid to take explosive material into Gaza on aid truck - Haaretz
December 30: Chemicals at checkpoint were disguised as EU aid - Jerusalem Post
Gaza tunnel smugglers stay busy - CS Monitor

LEBANON
Iran & Hizballah Targeted U.S. Embassy Officials in Lebanon - Counterterrorism Blog
Bomb Targets U.S. Car in Beirut, Three Local Civilians Reported Killed - New York Times
Four reported dead in attack on US embassy vehicle in Lebanon - Guardian
Thai communications satellite ThaiCom stopped broadcasting Al-Manar TV - ITIC
Background: Hizballah’s Al-Manar TV Broadcast by ThaiCom Satellite - ITIC

PAKISTAN
Nawaz Sharif (PML-N) slams alliance with U.S. - CNN

PALESTINIAN TERRITORIES
Israeli troops kill son of Hamas chief Mahmoud Zahar - Times Online

SAUDI ARABIA
President Bush discusses OPEC production levels with Saudis - CNN
U.S. Plans Sale of 900 Missiles to Saudi Arabia - New York Times
Sarkozy eyes big French contracts with Saudi Arabia - The Peninsula

UNITED STATES
Ex-Leaders of Islamic Charity, Care Int’l, Are Convicted - Washington Post
Policy View: Prosecuting Terrorism Beyond ‘Material Support’ - Washington Institute