Accusing the government of "complete blindness," Israeli Finance Minister Benjamin Netanyahu resigned Sunday, hoping to continue what he called "historic" economic reforms but feeling he could no longer lend his support to next week's Gaza pullout. Netanyahu, who submitted his resignation at the weekly Cabinet meeting, told a news conference that the pullout endangers Israel by creating a "base for Islamic terror" in Gaza.

A British remote-controlled vehicle cut loose a Russian mini-submarine that had been snarled on undersea cables for three days deep in the Pacific, and it surfaced safely Sunday with its crew of seven reported in good condition. The men aboard waited out tense hours as rescuers raced to free them before the vessel's air supply ran out. The US had also sent underwater vehicles for the rescue, but they were not used.

Envoys to North Korean disarmament talks announced a three-week recess Sunday after 13 days of meetings, deadlocked over the North's insistence on retaining a peaceful nuclear program. The talks are to resume the week of Aug. 29. The envoys had hoped to produce a statement of principles meant to guide future six-nation negotiations.

Iran insisted on Sunday it would resume uranium conversion this week after rejecting a package of European Union political and economic incentives to end its nuclear fuel work. It also expressed no concern about possible UN sanctions. Britain, Germany, and France, heading nuclear negotiations with Iran for the EU, have called an emergency meeting of the International Atomic Energy Agency's board of governors Tuesday to discuss Iran's case.

Britain sent a plane Sunday to collect Haroon Rashid Aswat from Zambia, which deported the suspect in the July 7 London terrorist attacks. Zambia detained the British citizen July 20 and questioned him about calls reportedly made to bombers on his cellphone.

More than 1.2 million people were evacuated as typhoon Matsa slammed China's southeastern coast Saturday, killing at least four people after dumping torrential rains on Taiwan.

Rescue teams worked Sunday to recover the bodies of three people believed missing from a Tunisian charter plane that was ditched off Sicily, killing at least 13. Twenty-three survived.

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