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Terrorists in Iraq exploded a car bomb that killed interim Governing Council President Izzedin Salim, and the US Army reported finding an improvised roadside explosive containing sarin gas. The nerve agent was released from an artillery shell that detonated, but without causing injury. It was the first confirmed discovery of a weapon of mass destruction there. Earlier, Salim and eight other Iraqis died as their cars waited to pass through a checkpoint into the headquarters of the US-led coalition in Baghdad. Responsibility for the attack was claimed by a previously unknown group calling itself the Arab Resistence Movement, Al Rashid Brigades. The US authority said the incident wouldn't stop the scheduled June 30 transfer to Iraqis of responsibility for their own affairs, and other Iraqi leaders said it would "strengthen our resolve to continue the political process."

Carrying household belongings, Palestinians streamed out of Gaza Strip refugee camps before an expected demolition by Israeli forces. But the cause of Palestinian statehood won renewed backing from Condo-leezza Rice, President Bush's national security adviser, who reportedly told Foreign Minister Nabil Shaath the US "will act now to stop" the Israeli offensive.

The greatest one-day plunge in stock prices in 129 years was reported in India as investors reacted to word that two strong communist parties would support - but not join - a new coalition government under Congress Party leader Sonia Gandhi. Gandhi decided not to claim power formally Monday as had been expected, but denied that her move was related to the financial news.

Jubilant supporters danced under fireworks late Sunday night in the Dominican Republic's capital as former President Leonel Fernandez returned to power. Incumbent Hipolito Mejia conceded defeat, saying exit polls from the election earlier in the day indicated Fernandez would win 54 percent of the vote, compared to his own 36 percent. Fernandez previously governed from 1996 to 2000.

An out-of-control fire roared through an overcrowded jail in Honduras, killing 101 inmates, authorities said. The blaze was blamed on an electrical short-circuit. The casualties all were identified as members of a street gang the government has targeted in a crackdown on violence. The facility had a capacity of 800 prisoners but reportedly was holding at least 2,200.

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