1. A small explosive device was detonated near the empty Times Square military recruiting station in New York City. No injuries reported.

2. Former US Navy sailor, Abu Jihaad, convicted of supporting terrorism by jury in an Arizona court.

3. Leadership changes and $1billion Iranian cash influx raise questions about Hizballah's near-term designs in Lebanon and region.

4. Palestinians attacked an IDF vehicle near border crossing, killing one, as rocket attacks into Israel from Gaza continue.

5. Pentagon believes China's announced 18% defense budget increase is far less than actual. China deflects by saying US exaggerates threat to Taiwan and stating PRC's PLA is no threat to any country.

AL QAEDA
Al-Qaeda calls for foreign recruits to join jihad in tape - Reuters

CHINA
Big hike in Chinese military spending not the whole story: Gates - AFP
From Monday: Pentagon says China's military secrecy poses risk - USA Today
Senior PLA officer: China's military power no threat to any country - Xinhua
China Says US Exaggerating Taiwan Threat - AP

COLOMBIA
U.S. Skeptical of Colombian 'Dirty Bomb' Claims - ABC
Chavez Calls Colombian Raid A 'War Crime' - CBS

GAZA STRIP
Picking Up Pieces, Gazans Debate Israel Incursion - New York Times
Palestinian Militants Ambush Israeli Army; Rocket Hits Southern Israel - CBS

IRAQ
U.S. awaits Iraqi request to turn over 'Chemical Ali' for execution - CNN
Iraq: Sunnis Say Iran Working To Solidify Economic Control - RFE/RL

KENYA
Kenyan Parliament to Mull Peace Deal - ABC

LEBANON
Hizballah gets a Billion Dollar Subsidy from Iran - Ya Libnan

PAKISTAN
Bhutto party (PPP) delays Pakistan PM decision - AFP
Police Fire Tear Gas at Pakistan Lawyers as Chaudhry rails against US, Britain, Musharraf - AP
Pakistan's Karachi blacked out over unpaid bills - Forbes
Dr A.Q. Khan, Father of the Islamic Bomb, hospitalized - DAWN

PHILIPPINES
Philippines Arrests 3 in Bomb Plot - Washington Post

US
Small Explosion at NYC Times Square Recruiting Station - MSNBC
Ex-Sailor Convicted in Terrorism Case - ABC