1. Within the historical context of overstating its conventional military capabilities, the widely published image of this week’s Iranian missile launch is found to have been digitally edited to cover up a missile misfire. Meanwhile, a major French energy firm has canceled a deal originally made with the Iranian regime for development.

2. In Israel, embattled PM Olmert has been questioned a third time by Israeli police over charges of inappropriately accepting money while in government.

3. Egypt has uncovered new tunnels along the Gaza-Egypt border and seized multiple weapons caches.

4. The International Criminal Court is expected to issue an arrest warrant next week for Sudan president Bashir on charges of war crimes in Darfur.

NEW FISA LAW SIGNED
Bush Signs Spy Bill, ACLU Sues - Wired
President Signs Electronic Surveillance Legislation; Lawsuits Expected - CQ Politics

CENTCOM, MNF-I COMMANDS
Senate Confirms Petraeus for CENTCOM, Odierno for MNF-I Commands - DefenseLink

COLOMBIA
US, Colombia choked rebel communications network - Washington Post

IRAN
French Energy Giant Cancels Gas Deal in Iran - NY Times
Picture: Iran ‘fakes’ missile launch after misfire - Times Online
Iran’s Enriched Uranium Supply Grows with Steady Production - Newsweek

IRAQ
Bodies of 2 missing U.S. soldiers found, relatives say - Los Angeles Times
Battle Over Sadr City Defines Apache Helicopter Regiment’s Tour in Iraq - The Long War Journal
Obama’s Iraq Withdrawal Plan: Mission Impossible? Commanders Warn of Troubles - ABC

ISRAEL
Police question Olmert third time on ‘money envelopes’ - M&C

GAZA STRIP
Hamas claims arrests PA-aligned al-Aqsa Martyrs Brigades members for rocket fire - AFP
Egypt uncovers three tunnels, weapons caches on border with Gaza strip - Haaretz
2 killed in tunnel collapse on Gaza-Egpyt border - AP
Logistics: The Lucrative Tunnels Of Gaza - Strategy Page

LEBANON
Hizballah-Israel prisoner swap set for next Wednesday - Haaretz
Lebanese leaders agree on national unity cabinet - M&C
France Develops Relations with Syria in Favor of Lebanon - an-Nahar

PAKISTAN
Taliban: Pakistan hostages will be slain if insurgents are not released - International Herald Tribune
Senior Taliban Commander Arrested in Northwest Pakistan - VOA

RUSSIA
Russian FM Says Iran Missile Tests Prove US Shield ‘Not Needed’ - VOA

SUDAN - DARFUR
ICC Arrest warrant likely for Sudan president Omar Hassan Ahmad Bashir - IHT

SYRIA
U.S. tightens sanctions on Syria - Reuters

TURKEY
Gunmen Who Killed Three At US Consulate In Istanbul Linked To al-Qaeda - Sky News

YEMEN
Yemeni security forces blanket Aden on war anniversary - The Long War Journal

1. Iran publicized a second round of missile tests as it attempts to deter any US or Israeli attack on its nuclear weapons program. Though Iran claimed the tests were of the longer-range version of the North Korean No Dong-based Shahab-3, it is believed to have been the older, shorter range version.

2. Terror attack on US Consulate in Turkey is believed to have been carried out by AQ-linked terrorists. One of the killed attackers is believed to have been released from Guantanamo Bay detention facility. Turkish speculation includes potential cooperation between al-Qaeda and Kurdish PKK terrorists.

3. New Lebanese President Michel Suleiman, seen by Syria as an ally, said in an interview that Hizballah is not a terrorist organization. In justifying, he said, “Whoever defends his land and liberates it from occupation cannot be termed terrorist. I cannot accept this in any case.”

WAR ON TERROR
Gitmo cases will be tried chronologically in US District Court - Washington Times
One Terrorist in Attack on U.S. Consulate in Turkey Believed Released from Gitmo - Los Angeles Times
Biological Terror Threat Worse Than Nuclear Terror Threat - UPI

ATTACK ON US CONSULATE IN TURKEY
Turkey investigates possible al Qaeda link in U.S. Consulate attack - Hurriyet
Turkey investigates al-Qaeda link - BBC
Investigators look for motive in deadly attack on U.S. Consulate in Turkey - Los Angeles Times
Al Qaeda-PKK cooperation lies behind Istanbul consulate attack? - Hurriyet
Consulate attack exposes Turkey’s frailty - Asia Times

IRAN
Iran test-fires more missiles in Persian Gulf - Washington Times
Israeli defense sources: Iran missile test not an advanced Shahab-3 as Tehran claims - Haaretz
History of Conventional Overstatement: Iran’s Public Defense Industry Trade Show Maneuvers - ThreatWatch 2006
Iran’s Asymmetric Defense Doctrine: Iran Defense: New Doctrine, Old Doctrine - ThreatsWatch 2006
Iranian General: ‘Our Hands Are Always on the Trigger’ - New York Sun
Strategically Related: PrincipalAnalysis: Iran’s Oil Weapon: Fielded and Wielded - ThreatsWatch
Rice warns Iran: US will defend Israel - AFP
U.S. says diplomacy is focus in Iran efforts - Reuters

ISRAEL
Israel sees Mediterranean Union as way to boost Arab ties - AFP
Q&A: ‘There Are No Negotiations Between Syria and Israel’ - IPS

LEBANON
Lebanese President: ‘Hizballah cannot be called terrorist’ - Press TV
Lebanese Troops Move On To The Streets Of Tripoli To Quell Armed Sunni-Alawite Clashes - Sky News

ZIMBABWE
Mugabe Plans to Retake Parliament, Officials Say - Bloomberg

1. Contradicting the latest politicized NIE, Western intelligence agencies believe Iran’s Revolutionary Guard Corps has set up a network for producing advanced P-2 centrifuges to enrich uranium much faster. The Iranian nuclear weapons program is not dormant.

2. The bombing in Kabul near the Indian embassy which killed over 40 may have been designed by al-Qaeda to stoke Indo-Pak tensions that have been relatively cool and managed since 2001. Pakistan has mistrusted and resented India’s involvement in the rebuilding and security of Afghanistan.

3. Al-Qaeda’s As-Sahab Media has published the 34th release this year, glorifying a terrorist who blew himself up in Afghanistan. Curious contradiction between his purportedly significant stature yet embarkation on suicide mission. Deceased is on tape describing how he and al-Qaeda trained Somalis to fight US forces after the invasion that led to the ‘Blackhawk Down’ events.

4. Report says that Palestinians have received nearly $1 Billion in direct aid in the past six months. Meanwhile, another mortar attack from Gaza violates the ceasefire and the PA’s Abbas meets with Islamic Jihad leadership in Syria.

AL-QAEDA PROPAGANDA
New As-Sahab Video In Honor of Slain al-Qaeda Commander - CBS

EUROPEAN MISSILE SHIELD
Poland tries to save U.S. missile-defense deal - Washington Times

AFGHANISTAN
Bomb in Kabul May Ignite India, Pakistan Tensions - New York Sun
Escalation in Afghanistan - Captain’s Journal

IRAN
Iran has resumed A-bomb project, says West - Telegraph
Iran stages war games, rejects nuclear demand - Reuters
Netherlands bans Iranian students from nuclear studies - AFP

IRAQ
UAE to cancel Iraq’s $7 billion debt - CNN

ISRAEL
Mortar shell hits W. Negev in fresh Gaza truce violation - Haaretz

PALESTINIAN TERRITORIES
Nearly One Billion dollars in direct aid disbursed to Palestinians in six months - AFP
Abbas meets Islamic Jihad head in Syria - Jerusalem Post

UNITED ARAB EMIRATES
An al-Qaeda Threat in the United Arab Emirates? - Jamestown.org

VENEZUELA
U.S. ties Caracas to Hizballah aid - Washington Times

1. While Pakistan has mobilized its military in FATA regions, it has yet to aggressively and directly combat Taliban and al-Qaeda with significance. Previous reports indicated mortar and other indirect engagements. Pakistani television reports 30 members of security forces have been abducted in Kurram agency.

2. President Bush has signed the supplemental war funding bill, freeing funds for Iraq, Afghanistan and other theaters in the conflict before us.

3. Israel and Syria are engaging in a third round of talks in Turkey today, with the Golan Heights high on the Syrian agenda.

4. Israeli-Hizballah prisoner swap is expected to contain two separate phases. Meanwhile, Israel criticizes UN report on the implementation of UNSC Res. 1701 in Lebanon because it ignores Hizballah’s violations.

DETENTION AND TRIALS DEBATE
Ex-Guantanamo detainee suicide bomber fought at Tora Bora - The Long War Journal
Commission Trial for Cole Bomber? Don’t Bet On It - The Corner

INFORMATION FLOW
Are Search Sites Over-Censoring in China? - ABC

INTELLIGENCE
Pentagon will buy satellites to do more spying - AP

IRAN
Strait of Hormuz Won’t Close, American Fleet Says - New York Sun

IRAQ
Iraq Opens Bidding on Oil and Gas Fields - New York Sun
President Bush signs emergency war spending measure - Los Angeles Times
Enemy Neutralized in Iraq’s Anbar Province, Colonel Says - DefenseLink

ISRAEL
Lebanon: Hizballah prisoner swap marks ‘failure’ for Israel - Haaretz

LEBANON
‘UN report ignores Hizballah violations’ - Jerusalem Post

PAKISTAN
Pakistan’s Army shying away from major Taliban assault - Seattle Times
Tribesmen kidnap 30 security men in Kurram Agency - GEO.tv
Mullah Omar wears shades, has trimmed beard, lives in Quetta, Pakistan: ex-follower - Canada East

SYRIA
Israel, Syria set for third round of talks today - Haaretz

ZIMBABWE
Mugabe aide says Western critics can “go hang a thousand times” - BBC